I need the live venues open...stadiums to clubs...It's awesome! Now I just need my vaccine so I can start spending some of these gains!! LOL
So your recommendation is SELL SELL SELL??The Fed in the states saw the slump the markets took when they announced the $1600 stimulus checks. All the big institutional investors stepped back since Friday and time stood still. At 2:00 PM today the fed announced that they may not hike interest rates till 2023. That cause the markets to surge. I am still expecting one of two scenarios. The markets will give us a big slump like we experienced in March of 2020 ( markets will go lower by 60% ) or we will get a series of small slumps ( 15- 20% ) There will be no more stimulus checks to bolster the American economy this year. There will be budget cut backs and tax increases in the future.
Over confidence is your enemy.
So your recommendation is SELL SELL SELL??
The markets don't solely reflect on stimulus cheques. There are other factors to it, like ending the pandemic and travel and tourism industry, etc. Airlines start to overbook again who use a shit load of fuel so there's the oil industry too.Preserve your capital for better times, we have not hit the worse of times yet. Trillions of stimulus was announced last Thursday and the markets went stagnant. I do not expect any new direct stimulus this year to the American public. Can you afford to be in s 60% stock market slump, or even a 15-20% slump?
Will the pandemic just disappear or will it re-appear in a mutated state. The mere mention of any outbreaks real or imagined will send the markets tumbling. Then there is the fear that has bee built up in peoples minds. I for one do not want to sit in a disease incubator with hundreds of other people with circulating virus. So I will not be flying anywhere soon. What about all the businesses that have been closed in the last year, how many bankruptcies will we see this year and the years to come. How many people that are retired or will retire in the next 10 years have seen their retirement income diminish. The governments have propped up the economies to the tune of trillions. There will be future increases in taxation to pay for all the spending that have taken place in the last 12 months. In the USA there is a eviction moratorium and mandatory mortgage forbearance, what happens where these safeties are lifted.The markets don't solely reflect on stimulus cheques. There are other factors to it, like ending the pandemic and travel and tourism industry, etc. Airlines start to overlook again who use a shit load of fuel so there's the oil industry too.
Look at what just happened in the last few days, The new stimulus was signed into law last Thursday and the markets tanked. The big financial institutions stepped back and stopped buying. It was not until 2:00 PM yesterday afternoon that the markets turned positive, when the Fed announced that there should not be any increase in interest rates before 2023. This announcement is quite nebulous and was only made to give a fragile market some confidence.Cash is always good. So is being cautious.
BUT this market looks to want to go higher. ( We are in bubble territory ) I would not sell it short. We may get to 5000 on the S&P. IF we get there, there could easily be a blow-off top to 6000.
Then ten years of bad returns. That is when you want to be in cash. Hopefully bonds may pay positive interest then too.
Look at what just happened in the last few days, The new stimulus was signed into law last Thursday and the markets tanked. The big financial institutions stepped back and stopped buying. It was not until 2:00 PM yesterday afternoon that the markets turned positive, when the Fed announced that there should not be any increase in interest rates before 2023. This announcement is quite nebulous and was only made to give a fragile market some confidence.