Walter's finance blog

Financial impact of global economy and politics

It's not always easy to understand how global events, like the war between Israel and Lebanon for instance or before that the war in Iraq, George Bush's global war against terror or more regional events can impact financial reality of everyday life.

What has to be understood is that financial markets, company's life and every area of finance are completely interlinked through on one side the investors and the people as consumers and on the other side the work forces that make companies life possible. When there is a crisis in middle-east, oil prices climb because of the fear of shortage of oil, oil prices climbing make everyday life more expensive and consumers consume less other goods impacting in this way financial health of companies and their stocks.

Many other examples will follow...

posted by Walter @ 10:46 AM