The global economy is in a challenging state. After a tough few years with Coronavirus, it appeared that we had gotten through the worst of it – on the face at least. The stock market rebounded absurdly fast after the March 2020 crash, whilst most major economies only dipped into a technical recession briefly before recovering.
However, issues remained under the surface. Mostly within global supply, there were still shortages and logistics issues. Anybody chasing after the latest PlayStation 5 would have experienced this in full force. Today, we have even more severe supply issues with an energy crisis, made worse by the Russian invasion of Ukraine, which has caused sky-high inflation around the world.
Ramifications on the weaker European economies
High demand-pull inflation is something that developing countries often experience as part and parcel of fast growth. This isn’t always a bad thing unless it gets out of hand. However, cost-push inflation, as currently being experienced, brings with it very little reward.
When looking at who is experiencing the worst inflation in Europe, it is developing countries that top the list. Turkey and Moldova are in crisis, with 78% and 31% inflation respectively, whilst Ukraine, Belarus, Bulgaria, Romania, Macedonia, Bosnia, Kosovo, and Montenegro all have between 13% and 20% inflation.
It is arguably the weaker economies in the EU that are the cause of the ECB’s hesitation over raising interest rates. To still have negative interest rates in an EU that is currently suffering 8.6% inflation, does seem absurd. And although there are now plans of a slight increase, the reluctance to raise rates in alignment with the Fed’s is perhaps because the struggling economies would struggle to repay their debts – debts that were exacerbated over lockdowns.
As a result, the USD has reached parity with the Euro. Whilst the dollar is usually sought after during a crisis, the continuous rise in rates in the US is a huge factor in the weakening of currencies around the world. In fact, the Guardian has pointed out this is a selfish move by the US, in which dollar-denominated loans – which are common among developing countries – are becoming unsustainably expensive to repay.
It could be argued that the EU is merely anticipating a worse recession than the Fed, and so is reluctant to be heavy-handed with its contractionary monetary policy. Regardless, the weaker economies within the EU are seeing their purchasing power decline twice-fold: once through inflation, and again through a weaker currency. On top of this, they’re also seeing any dollar-denominated debts become rapidly more expensive.
Worldwide investors bet against emerging markets
As mentioned above, in turbulent times, the USD is often seen as a safe haven – unless it’s a US-centric crash, then gold is favoured. Emerging markets are a volatile asset class, so traditionally they’re avoided when a recession is on the horizon. MillionDollarJourney, among others, are not recommending emerging market ETFs for this reason.
In order to understand the other reason why investors are betting against emerging markets is to ask, who are the investors? Participants of the stock market have changed substantially over the past 5 years, with retail investors now playing an increasing role in total transactional volumes.
Well, it’s no surprise that western retail investors lack the time and knowledge to invest in emerging markets. For some, even the known risk of their own economies is more compelling to invest in than the unknown risks of an emerging economy.
If we look at a map of business cycles around the world, it seems that the only economies that are experiencing growth at the moment are emerging economies. Though, this isn’t the same as saying all emerging economies are experiencing growth – many are also at risk of a recession, along with the threat of devastating inflation figures.
Deciphering through which emerging markets offer promising prospects and which simply carry too much risk is inherently difficult because emerging markets are in a unique moment unlike developed economies. This in and of itself is the risk that many are unwilling to take, not least on the bring of a global recession; the US dollar, commodities, and energy stocks just seems a safer bet right now.
Recessions hurt the poorest
We can get too caught up in talking about the stock market. But, in the event of a crisis, it hides the truth of what is going on underneath: mass redundancies, late wage payments, mortgage defaults, and small businesses folding. In moments like these, we realise why the Kenyan Shilling declining against the dollar is important.
It is the stock market activity that can turn an emerging market on its head, through shorting its currency (and thus artificially debasing its currency overnight) and pulling billions worth of investments out of the economy.
In general, it is the asset holders and investors that lose the least. They lose the most in terms of nominal value – a $20,000 decline in value of their stock portfolio – but they lose the least because they’re wealthy enough to have surplus assets.
Holding onto assets until they rebound in value is possible unless your cashflow dries up, but clearly, it’s the poorest who are most vulnerable regarding cash flow. Those with poor job security and minimal disposable income will struggle to repay their increasingly expensive debt repayments.
Kenya’s position in the global economy
Kenya’s political and economic reforms are seeing the fruits of their labour right now. In the face of a global crisis, Kenya marches on with economic growth with an inflation rate in-line with the average developed European economy. Plus, some of that inflation is legitimately demand-pull.
Growth is expected to continue, albeit decelerated, into 2022 and 2023. The rise in fuel cost has expected impacts on inflation, though, and is hitting the poorest. Nobody knows the outcome of the 2022 election – or the impacts of global warming – just as we don’t know how the deceleration of the growth will impact foreign investment into Kenya. Very quickly, the cost of living could become more severe due to the depreciating Shilling, prolonged inflation, and investors becoming hesitant.
The Role of the Jockey in Horse Racing: Training, Skills and Strategies
Usually, at horse races, the focus is on the horses. No surprise. Accordingly, bettors intensively study the parameters and characteristics.
However, unlike greyhound racing, the horse does not run the distance alone.
The role of the jockey in this sport cannot be understated, and if you monitor betting-related resources like bet-guide.ke, you know that they work together with the horse. Let’s find out how much influence the rider has on the outcome of the competition.
Professionals say that it is not the horse that wins the race but the jockey. This may be an exaggeration, but still, the role of the rider is significant. Let’s figure out what they are responsible for in the horse racing process.
- The jockey decides at what speed the horse travels each section of the track and what trajectory it follows. The specialist knows when to spur the horse and when to hold it back.
- The second duty directly follows from the first. The rider develops race tactics to plan the pace and actions of the animal throughout the race.
Overall, the jockey plays a critical role in the success of the equestrian sport. Riders link horse and trainer, ensuring optimal execution of training and competition programs. Without a human, the horse may not reach its potential and perform at its best on the track.
Requirements for Jockeys
Obviously, any sport imposes certain requirements. Horse racing is no exception. And while people often discuss the characteristics and potential of horses, they rarely talk about jockeys. Let’s look at what an ideal rider should be like.
- Weight is a jockey’s number one enemy. Regardless of gender, the usual weight of a jockey is 50-52 kg. Before the race, the jockey and saddle are weighed. If the weight is below average, the rider must compensate with additional weight. The opposite case is known when a jockey weighs himself without boots to meet the limit. They went to the races in the same form as at the weigh-in.
- The gold standard for height is considered to be 150 – 167 cm. Previously, these requirements were mandatory, but today they have been removed. However, traditionally, when choosing a jockey, preference is given to short riders.
- Good physical shape is required. Sedentary work in the fresh air is only in photographs. Behind the scenes, hours of training and hard work go into the saddle. A jockey’s working day begins very early. It is also a dangerous profession. Falls and serious injuries are not uncommon.
- A professional must have deep knowledge. In addition to perfect riding and seating, the specialist must be familiar with the horse’s anatomy and physiology. They understand and feel the animal, know how to cheer it up, put it in a working mood, and give confidence.
Unfortunately, few places in Kenya train jockeys. By the way, you can read about the state of this discipline in general in this article.
Functions of Jockeys
In general, jockeys play an essential role in equestrian sports, being skilled athletes who ride horses to victory. They help the horse perform at its best and correctly distribute efforts over the entire length of the distance. Their functions include:
- Control: It is obvious that the jockey controls the horse: regulates its speed, sets the optimal trajectory of movement. That is, the rider uses all his riding skills to lead the horse to the finish line first.
- Tactics and strategy. An experienced rider can instantly assess the situation on the track and choose the best plan. First, this concerns the speed limit and the distribution of the animal’s energy during the race.
- Fitness and training: Jockeys are directly involved in the training and preparation of the horse. They spend many hours daily at the racetrack, keeping the animal in good shape and developing its athletic performance. Riders also monitor the condition of their animals and assist in their training and physical development.
- Analysis and preparation. A jockey’s participation in horse racing begins long before the race. The specialist studies the strengths and weaknesses of his animal and competitors. Based on this data, the rider develops a training plan and the race. Success in race requires a solid plan, and riders must constantly improve this skill.
- Communication. Jockeys are the closest thing to these beautiful animals. They study their behavior and determine its needs. Often, it is the rider who conveys valuable information to the trainer and horse owner. Accordingly, jockeys must perfectly read the slightest signals the animal gives during communication.
Now you see what a significant role jockeys play in horse racing. These unsung professionals are on the front lines and largely determine the outcome of horse racing. The discipline imposes strict requirements, so becoming a good jockey is difficult. Next time you watch a horse race, pay attention to these participants and consider their experience in making betting predictions.
The History of Ostrich Racing: From Tradition to Modern-Day Entertainment
Different sorts of animal racing have been an active part of the world of sports for quite some time. Often attacked by animal rights activists and defended by fans of the discipline, such activities are also obviously popular among bettors.
While horse racing takes first place for being famous and having more participants, there are other sports as well.
This article aims to describe the history of ostrich racing briefly yet demonstratively. Being a popular sport in South Africa, the U.S., and some other countries, the roots of such a tradition go back a long way.
And while betting on ostrich races exists, we won’t cover it in detail in our article. If you’re looking for wagering tips, look at other sources. For example, BetsBest.ke offers enough information to help one succeed in betting.
What Is Ostrich Racing?
Ostriches are flightless birds native to Africa. These animals can reach high speeds when running, sometimes up to 70 km/h. That means that before the creation of cars, they were among the ways to move quite fast. While they aren’t the means of transportation, mainly due to the impracticality and difficulty of riding, their racing is a popular attraction for people in some parts of the world.
When Did It Become a Thing?
In the US, ostrich racing started growing in popularity by the end of the 1800s. For example, in Chandler, Arizona, the birds were brought by the city founder, Dr. Alexander J. Chandler, in the 1880s. He started an ostrich farm there, although riding became the town’s attraction several decades later.
That town isn’t the only one in the States to have ostrich racing features in its festivals, but the modern tradition usually traces South Africa. In its Western Cape region, to be precise. And even that’s not where ostrich riding appeared for the first time. The oldest known evidence leads us to a Sumerian city, Kish, 3000 years ago, and it’s far from the only ancient place where people ride ostriches. But South Africa seems to be where it gained popularity and spread to other countries.
Modern Ostrich Racing
Ostrich racing has become a popular attraction, and while it’s now not at its highest point, it’s still common in many places where it was a tradition. For example, in Chandler, Arizona, as mentioned in the article, ostrich racing is present. The town even holds an annual ostrich festival. It’s relatively new, having been held for just over 30 years, but it’s based on the town’s rich history of farming these animals.
Various ostrich riding attractions exist in other parts of the US, as well as in other countries, such as Vietnam, South Africa, and even the United Kingdom. For example, Jacksonville, Florida, is another place where one can ride ostriches, and the tradition lives on after a hundred years. Unsurprisingly, the activity gets a lot of criticism from animal rights groups, although some establishments exist that work on improving ostriches’ well-being, as well as the salary of workers.
What’s more interesting is that the sport isn’t as popular in Australia as one would have thought. Despite being a common animal in the country, multiple attempts to introduce the sport into the country were met with different levels of success. Still, it didn’t become a popular attraction like it did in South Africa or the U.S. for some reason.
Ostrich racing is a discipline that has managed to remain prevalent throughout all of the years. The sport is enjoyable for bettors, starting as a tradition and continuing as an attraction.
In this article, we looked at this activity, its history and origins, and how it works. Ostrich racing still lives on as a continuation of tradition in South Africa and some towns in the United States. Still, its popularity has declined, and animal abuse allegations affect it. The activity is also dangerous for riders, involving a significant level of skill and coordination.
Mrs. Watanabe’s Influence on the Forex Market: Past, Present, and Future
The term “Mrs. Watanabe”, synonymous with the fascinating yet often overlooked force symbolized by Watanabe in the FX market, tells a remarkable story.
This phenomenon, deeply rooted in Japan’s unique economic history, narrates how individual retail investors, particularly Japanese housewives, have managed to make a significant impact on worldwide financial markets.
Mrs. Watanabe and the World of Financial Markets
In Japan, a country known for its low interest rates, the typical Japanese housewife, dubbed ‘Mrs. Watanabe’, began engaging in forex trading as a means to increase household income. These women, adept at managing household money, found an opportunity in foreign exchange markets. Their foray into currency trading was not merely a pastime but a serious investment strategy, leveraging the interest rate differential between Japan and other countries.
|USA||Higher Rate||US Dollar|
|Australia||Higher Rate||Australian Dollar|
The table above illustrates the typical scenario where Mrs. Watanabe would invest in higher yielding currencies, often considering those identified as high growth currency, leveraging Japan’s low interest rate environment. By borrowing yen at low interest rates and buying yen back at opportune times, while investing in currencies from countries with higher interest rates, these investors aimed to profit from the interest rate differential.
This strategy, while profitable in certain market conditions, also exposed Mrs. Watanabe to significant FX volatility and short term market fluctuations. These factors required a keen understanding of risk management, which many Japanese housewives honed over time.
The Role of Forex Trading in Mrs. Watanabe’s Strategy
Forex trading became a crucial element in Mrs. Watanabe’s investment strategy. As individual investors, they capitalized on the volatility of the forex markets to generate profit. The Japanese yen, often seen as a safe haven in times of global market uncertainty, played a key role in their trading activities.
Their involvement in currency markets wasn’t just a minor blip but had a significant impact. The collective actions of these individual investors could influence the strength of the yen and, by extension, impact international markets.
Understanding the Impact of Interest Rates on Mrs. Watanabe’s Investments
Interest rates are a central factor in the financial decisions of Mrs. Watanabe. The persistent low interest rate environment in Japan, a result of the nation’s ‘lost decade’, pushed these investors to look beyond their borders. Seeking higher returns, they turned their attention to foreign currencies offering a higher interest rate.
This interest rate differential not only provided an avenue for profit but also introduced a layer of complexity to their investment strategy. It required a sophisticated approach to risk management, considering factors like transaction fees and inherent risks of investing in foreign currencies, especially with borrowed money.
How Japanese Household Investors Reshape Global Financial Dynamics
Mrs. Watanabe, as a collective term for Japanese housewives engaging in forex trading, represents a unique phenomenon in global finance. Their rise as a force in the financial markets highlights the interconnectedness of the world economy. Japan’s domestic economic policy, particularly its low interest rates, had far-reaching effects, influencing currency markets and investment trends globally.
The influence of Mrs. Watanabe extends beyond Japan, demonstrating how individual retail investors can shape global market dynamics. Their presence in the forex market, influencing global markets, is a testament to the power of individual investors in a world often dominated by large institutional players.
The Evolution of Trading Strategies Among Japanese Housewives
Over the years, Mrs. Watanabe’s approach to trading has evolved. Initially focusing on profiting from interest rate differentials, these savvy investors have adapted to changing market conditions. Their ability to navigate the complex world of forex trading, while managing the risks associated with significant FX volatility, speaks to their resilience and adaptability.
- Adapting to Market Changes: Including the adoption of day trading techniques, Mrs. Watanabe has shown a remarkable ability to adjust strategies in response to global financial shifts.
- Risk Management: A crucial aspect of their trading, balancing potential profits with the risks of currency fluctuations.
- Diversification: Broadening investment portfolios beyond just forex to include other financial markets.
The evolution of their trading strategies underscores the dynamic nature of the forex market and the need for continuous learning and adaptation.
Mrs. Watanabe and the Future of Forex Trading
Looking ahead, the role of Japanese retail investors in forex trading and the broader economic landscape is likely to remain significant. As global finance becomes increasingly accessible and interconnected, the influence of individual investors, exemplified by these diligent Japanese housewives, will continue to be felt.
Their story is not just about investment and profit; it’s about empowerment, financial literacy, and the democratization of global finance. Mrs. Watanabe’s journey in the world of forex trading serves as an inspiring example for individual investors everywhere.
In conclusion, Mrs. Watanabe’s impact on the forex market is a testament to the power of individual retail investors. Their story reflects the broader trends in global finance, where technology, accessibility, and education have enabled a wider range of participants to play a crucial role in the dynamics of the financial world. As we look to the future, the lessons learned from Mrs. Watanabe will undoubtedly continue to influence the strategies and approaches of investors worldwide.
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