Capital markets long term growth

Short-term profit volatility and analysts forecasts, then, have much less impact on a company s share price than is often assumed. Capital markets have a longer-term perspective. Furthermore, in an industry like chemicals, even if we assume a continuous improvement in fundamental performance, the attempt to generate an equally continuous, volatility-free growth in profits will be virtually impossible because of structural factors like feedstock volatility, currency exposure, and seasonal effects. Chemical companies should learn to live with earnings surprises and concentrate instead on communicating a concrete long-term strategy - and of course deliver appropriately on capital market expectations, which will be correctly set on this basis. 

The statistics illustrate some of the differences in relative wealth, particularly between the former Eastern Bloc states and capital driven markets of the West. However, it is important to remember that although growth was restricted by war then by communist central planning, the East European states do have an industrial base and an educated and skilled population. Given sufficient investment they are capable of rapid economic growth without the long-term development of very basic education and industrial cultures required in poorer countries elsewhere in the world. 

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