The Smart Trader

by
Joe Expert

Global stocks were sent tumbling Monday in reaction to increased uncertainty surrounding the Ukrainian political crisis. London’s FTSE 100, Japan’s Nikkei 225 and Hong Kong’s Hang Seng each shed almost 1.5% for the day, while the DAX in Germany lost 3.44%. Russia’s prominent benchmark index, the MICEX, plunged nearly 13% as $60 billion evaporated from the Moscow stock exchange. Investors appear to perceive the increasingly ominous unrest in Ukraine as detrimental to the global economy. Susan Bao, co-manager of JP Morgan’s US Equity Fund, warns of the ‘obvious risk’ should ‘Western countries impose economic sanctions on Russia’. Russian President Vladimir Putin’s insistence on invading neighbours Ukraine has prompted investors to scramble for safe havens.
 

by
Joe Expert

Warren Buffett’s conglomerate holding company Berkshire Hathaway has confirmed record profits of $19.48 billion for 2013. The Omaha, Nebraska based firm saw full year profits rise an impressive 31%, equating to $11,850 per Class A share. Buffett, the world’s fourth wealthiest man according to Forbes magazine, released his annual report to shareholders on Saturday. Analysts’ profit expectations of $18 billion were emphatically exceeded by Berkshire. The company’s stellar performance is attributable to strong year-on-year growth in large, established American companies.