2016 - A tough year?

yihao93

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The credit balance is the $ amount of stock plus the deposits in the margin account minus the margin debts. It is always negative or 0 as one always borrows the money from the brokers.

The more the negative credit balance, the more the investors borrowing money from the brokers. If the investors' account balance becomes negative (due to losses in stock value), the brokers will make margin calls or sell your stock at lelong price to cover the losses. It works for shorts and longs.

ohhh, icic, thx!
 

IronMac

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If the rain is moderate, then ok. But El-Nino tends to create havoc in weather.. either flooding or draughting.. not so good to farmers when that happened

For the US, drought is not going to be an issue. They are actually hoping for more rain in California. So, more rain, flooding perhaps...still good news for food prices.
 

skyjuicetse

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Got citations for your (pcuser123) claim? Did some prof write a paper suggesting elnino's impact on global economy?

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Weather related calamities, like El-Nino, are never the cause of any economy amalgaddon before. may be because El-Nino happened when we have good years. However, they may cause economies of some countries to fail during bad years and cause ripples over the Globe.
These few years, many countries and corporations choked up mountain of debts; even oil giant like Saudis was suffering. El-Nino will bring hardship to these countries and corporations if they depended heavily on agricultural, mining or fishing to survive. China Fish and Pacific Andes are just 2 example. Australia and New Zealand will face serious set backs so are India, Indonesia and some others.
IMF based on previous counts of El-Nino predicted that more countries will gain from this coming El-Nino. However, like many other weather related calamities, El-Nino can be unpredictable.
 
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skyjuicetse

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El-Nino is said to have caused by excess CO2 emissions.

El-Nino occurrences can be traced back to 1800, it was only after 1960, we see more of El-Nino occurring frequently and it peaked after 1980. El-Nino is a natural phenomenal but it turned worse due to man-kind's careless Co2 emissions and therefore, preventable.

ext.ts.jpg
 

skyjuicetse

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For the US, drought is not going to be an issue. They are actually hoping for more rain in California. So, more rain, flooding perhaps...still good news for food prices.
El-Nino always affect agriculture producing, causing lesser crops and produce, inflating the price of food. For California, this was predicted

Typically, El Niño peaks in the state during the first three months of the year, according to Patzert. He predicted that once the rains started, California likely faced “mudslides, heavy rainfall, one storm after another like a conveyor belt.”

http://ktla.com/2016/01/02/series-o...socal-with-potentially-heavy-rains-next-week/
 

Peasant999

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Flooding destroy houses & buildings, which cause water supply to be cut off. There would be demand for basic needs such as water, food & temporary shelters. Then the re-building of houses, which means the construction industry might benefit from it. So in conclusion food & construction stocks would appreciate. I might be wrong here.

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pcuser123

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It intensifies the effects, it doesnt cause El-Nino :s12:

Correct. what I meant to say; also, lot of disasters, like Chennai flooding are man-made errors and can be prevented.

The record of El-Nino can be traced to early 1650. then, sea temperature was mild +0.5 to -0.5 C. The industrialization "intensified" the El-Nino. Even in the 1960, it was not a threat.

Understand the Chennai flooding was caused by poor urban planning with inadequate drainage facility.

10ofgit.jpg
 

pcuser123

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Flooding destroy houses & buildings, which cause water supply to be cut off. There would be demand for basic needs such as water, food & temporary shelters. Then the re-building of houses, which means the construction industry might benefit from it. So in conclusion food & construction stocks would appreciate. I might be wrong here.

True. That was how economists see it; also, the services and financial centres will not be too much affected except the inflation rate will be way way up due to soaring price in commodities. Can we say good for those like the silly Japanese who want inflation rate to rise?
 

IronMac

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These few years, many countries and corporations choked up mountain of debts; even oil giant like Saudis was suffering.

To be correct, the Saudis are not suffering from mountains of debt. They are incurring deficits due to low oil prices.

El-Nino will bring hardship to these countries and corporations if they depended heavily on agricultural, mining or fishing to survive. China Fish and Pacific Andes are just 2 example. Australia and New Zealand will face serious set backs so are India, Indonesia and some others.
IMF based on previous counts of El-Nino predicted that more countries will gain from this coming El-Nino. However, like many other weather related calamities, El-Nino can be unpredictable.

So, in other words, some will benefit, some will not.

Not to mention that this year's El Nino is predicted to be moderate.
 
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IronMac

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El-Nino occurrences can be traced back to 1800, it was only after 1960, we see more of El-Nino occurring frequently and it peaked after 1980. El-Nino is a natural phenomenal but it turned worse due to man-kind's careless Co2 emissions and therefore, preventable.

No, you cannot prevent an El Nino from happening. What you are trying to say is that you do not want to contribute to the strength of one.
 

IronMac

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True. That was how economists see it; also, the services and financial centres will not be too much affected except the inflation rate will be way way up due to soaring price in commodities. Can we say good for those like the silly Japanese who want inflation rate to rise?

Wow...pretty broad brush here.

First of all, if there is destruction of property then construction and home repair stocks will be up.

Second, the insurance industry would take a big hit.

If we limit ourselves to the US, I strongly doubt that the inflation rate would be up. Why? You have the deflationary effect of lower oil prices as you pointed out earlier what with warmer winter weather leading to higher oil inventory leading to lower oil prices. :)
 

pcuser123

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Read the post. dun think he said Saudis are suffering from mountain of debts.. cannot be suffering from financial deficit and may go even broke?

http://www.telegraph.co.uk/finance/...broke-before-the-US-oil-industry-buckles.html

As for whether this EL-Nino is moderate or not. If one read from Peru Weather report, they will say moderate but the one from US will say otherwise

http://www.sbs.com.au/news/article/2015/12/31/nasa-scientists-warn-el-ninos-full-impact-yet-be-felt

http://www.weather.com/news/climate/news/el-nino-outlook-strong-possible-may2015

To be correct, the Saudis are not suffering from mountains of debt. They are incurring deficits due to low oil prices.
So, in other words, some will benefit, some will not.
Not to mention that this year's El Nino is predicted to be moderate.
 
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Genosis

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Errrrmmm guys... I dun think people in the corporate world/ wall street really cares about long-term environmental problems (except Elon Musk :o)They might sound/act like they care a lot, but they are merely paying lip service.

Earth is not going to feel significant effects of El Nino until many decades later. By then, most of us here will no longer be around/ too old to bother about it.

Sure, parents and grandparents are saying 'Oh, I want to leave a better and cleaner world for my grandchildren and great grandchildren. Blah blah blah....' yea right...:s8:
 
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