This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Unwary Investors Will Lose as Cold War 2.0 Evolves

NEW YORK (TheStreet) -- A persistent shadow drops now over prospects for economic growth in America and Western Europe, where most public companies have a concentration of customers and assets.

It is not simply that populations across Western Europe are too old and or are growing too slow. It's that Russia is decidedly on the move while America unwisely retreats from a once commanding position of geo-political influence worldwide.

Russia's unrelenting advance and America's sloppy, ambivalent response so far raise ghosts and worries in western Europe that already are heightening anxiety in capitals and households grown accustomed to a peace kept at comparatively low cost, under America's increasingly porous defence umbrella.

At the same time, rumblings mount in Russia, China and the Middle East, plainly suggesting that foreign appetites for holding fiat currencies such as the U.S. dollar and the euro are waning.

These rumblings, once translated into alternative schemes supplanting use of the dollar and the euro as reserve currencies of choice, further threaten American and European multi-national companies and governments, long-accustomed to operating using priviledges that inevitably will disappear.

A one-two punch could soon be landing hard to pummel traditional, long-only investors: structurally driven constraints upon reported financial results from continuing operations, coupled with rising benchmark interest rates for U.S. and western European governments.

It is a mistake of enormous proportions to assume what plays out now involving Russia's annexation of  Crimea and unfolding advance into eastern portions of Ukraine has to do only with territory or with tweaking the geo-political balance along an edge of the European continent.

It is an even bigger mistake to assume, as famed journalist Ambrose Evans-Pritchard does, that Russia has already lost much in Putin's Crimean gambit over continuing objections from key western powers.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $130.28 0.00%
FB $81.53 0.00%
GOOG $565.06 0.00%
TSLA $218.42 0.00%
YHOO $44.52 0.00%

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs