El Nino and La Nina
Recent weather patterns in the Northern and Western Hemispheres have given rise to discussions about El Nino, and how the periodic warming of the ocean’s surface can produce extreme climactic conditions thousands of miles away. Its companion effect, La Nina, likewise causes climactic changes with corresponding cooling of the ocean’s surface temperature.
In the past quarter, the violent movement of asset markets – commodities, foreign currencies, and equities, have likewise provoked great discussion as to their sources – Fed policy, China’s slowing growth, what could it possibly be?
While there is no way to answer such questions definitely, it is certainly worth noting that forward profit expectations for the next 12 months have turned down for the first time in 6 years. To read the entire report: The Investment House Quarterly Q3 2015