• 4 minutes Nord Stream 2 Halt Possible Over Navalny Poisoning
  • 8 minutes America Could Go Fully Electric Right Now
  • 11 minutes JP Morgan says investors should prepare for rising odds of Trump win
  • 4 hours Permian in for Prosperous and Bright Future
  • 8 hours Daniel Yergin Book is a Reality Check on Energy
  • 4 hours YPF to redeploy rigs in Vaca Muerta on export potential
  • 3 hours Gepthermal fracking: how to confuse a greenie
  • 15 hours US after 4 more years of Trump?
  • 9 hours Top HHS official takes leave of absence after Facebook rant about CDC conspiracies
  • 13 mins Oil giants partner with environmental group to track Permian Basin's methane emissions
  • 20 hours The Perfect Solution To Remove Conflict Problems In The South China East Asia Sea
  • 2 days US Oil Refinery Fexibility
  • 3 days China Must Prepare for War Says State Media
  • 1 day Surviving without coal is a challenge!!
  • 2 days Portuguese government confirms world record solar price of $0.01316/kWh
  • 3 days Interconnection queues across the US are loaded with gigawatts of solar, wind and storage
Trade War Weighs On Western Automakers In China

Trade War Weighs On Western Automakers In China

Western automakers in China are…

Global Economy Throwing Up Red Flags For Oil

Global Economy Throwing Up Red Flags For Oil

Investors are feeling increasingly gloomy…

How COVID-19 Is Transforming The Auto Industry

How COVID-19 Is Transforming The Auto Industry

Dealerships are looking to pre-owned…

Mad Hedge Fund Trader

Mad Hedge Fund Trader

John Thomas, The Mad Hedge Fund Trader is one of today's most successful Hedge Fund Managers and a 40 year veteran of the financial markets.…

More Info

Premium Content

Watch International Savings Rates for Market Cues

Often while searching for a piece of data through Google, I stumble across something else, which is far more interesting. That is how I found the table below of international savings rates.

Why should you care? Because countries with high savings rates tend to have strong economies and great stock markets, since there is plenty of excess cash available to pour into investments.

Those with low savings rates suffer from weak economies and poor stock markets, because of a shortage of available capital.

When the American savings rate dropped below zero in the latter part of the last decade, it set off emergency alarms for me that a collapse of the financial markets was on the horizon.

During the last four decades, I have watched Japan’s savings rates plunge from 16% to 2.8%, and you know the result for markets there. When it approaches zero, that will be the time to short the JGB’s, the yen, and the Nikkei stock index.

The only country that doesn’t fit this analysis is Australia, with a mere 2.5% savings rate, but boasts a positively virile stock market and currency. Perhaps the resource boom there is skewing things?

By the way, the outlook for the US, with its still miserable 3.9% savings rate, does not look great when considering this benchmark. Don’t expect a runaway bull market anywhere savings rates are low and rising. What are savings rates telling us are the best countries in which to invest? China, 38%, India, 34.7%, and Turkey, 19.5%.

Australia – 2.5%
Japan – 2.8%
USA – 3.9%
Brazil – 6.8%
Britain – 7.0%
Germany – 11.7%
Ireland – 12.3%
Switzerland – 14.3%
Turkey - 19.5%
India – 34.7%
China – 38%

By. Mad Hedge Fund Trader


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News