????Risks & Questions Facing The Stock Market in 2020
The first market sessions in 2020 confirmed the positive trend recorded the previous year. However, some events could lead to a reversal.
The first sessions of the stock markets in 2020 were characterized by new highs, accompanied, however, by a return of volatility. Political tensions contributed to the climate of uncertainty.
This market remains priced to perfection on artificial liquidity. With liquidity bound to be reduced expanding growth needs to emerge for valuations to be sustainable.
The bond markets signals no such growth emerging. Either the bond market has it wrong, or it represents a lurking risk.
This tight rope market remain vastly overbought and pushing against resistance but is currently impervious to risk. The next few days and weeks may put this risk free attitude to the test. Key to keep an eye on all of these lurking risk factors.
Here's 3 Risks To The Bearish View.
The QE Candy .
The REPO Fuel.
The Rate Cut Cake.
Stocks are expensive because the Feds pumped over a trillion dollars into the market and continue to pump billions daily. The FED stops pumping money or even talks about raising rates, say good bye. QE is not an indicator of a healthy economy, but a very weak one.
Investing in stocks can be a smart move, but you have to be careful.
Welcome to The Atlantis Reports.
The first sessions of the stock markets in 2020 were characterized by new highs, accompanied, however, by a return of volatility. In particular, political tensions in the Middle East have contributed to the uncertainty of recent days.
Based on this scenario, we indicate some questions that could accompany the equity markets during 2020. In the following analysis, we try to answer each of the questions.
Will there be a recession in the United States or globally? No. We believe 2020 should show a continued recovery of economic activity, albeit moderate. We expect growth to remain around trend levels for the main economies, but we believe that the United States could offer a positive surprise .
Will the US-China truce on the commercial front hold up? Yes. We expect the recent ceasefire to continue as both sides have strong incentives to avoid further escalation. However, we believe that other "phases" or an all-inclusive trade agreement are unlikely, with the negotiations likely to stop.
Will the United Kingdom manage a trade agreement with the European Union by the end of December? No. Boris Johnson has campaigned to "end Brexit" and has not further extended the transition period beyond December 2020. However, we believe that a complete trade agreement is unlikely to be reached in a matter of months. We expect an extension, but we recognize the possibility of continuing with the WTO legislation to continue negotiations from the outside.
???? For the full transcript go to https://financearmageddon.blogspot.com
???? Donate to help The Channel: https://tinyurl.com/vqbgwld
???? Amazon Affiliate Links : https://tinyurl.com/sqwekhd
Support the channel by clicking here before you start shopping on Amazon: https://tinyurl.com/sqwekhd (heck, even bookmark it for future use if you're feeling extra generous).
Thank you to all my loyal fans i love each and everyone one of you Please **like and subscribe**
???? Follow us on Facebook : https://www.facebook.com/theatlantisreport
and on twitter : https://twitter.com/atlantis_report
????Recommended Economic and Financial books :
Destined for War: Can America and China Escape Thucydides's Trap? https://amzn.to/33RwG52
How an Economy Grows and Why It Crashes by Peter Schiff : https://amzn.to/33Tk8Ky
Bitcoin: The End Of Money As We Know It https://amzn.to/31TXAqX
The Death of Money: The Coming Collapse of the International Monetary System https://amzn.to/2L2688q
COPYRIGHT DISCLAIMER:
Under section 107 of the Copyright Act of 1976, allowance is made for “fair use” for purposes such as criticism, comment, news reporting, teaching, scholarship, education and research.
This presentation contains images that were used under a Creative Commons License. Click here to see the full list of images and attributions:
https://link.attribute.to/cc/713393
The first market sessions in 2020 confirmed the positive trend recorded the previous year. However, some events could lead to a reversal.
The first sessions of the stock markets in 2020 were characterized by new highs, accompanied, however, by a return of volatility. Political tensions contributed to the climate of uncertainty.
This market remains priced to perfection on artificial liquidity. With liquidity bound to be reduced expanding growth needs to emerge for valuations to be sustainable.
The bond markets signals no such growth emerging. Either the bond market has it wrong, or it represents a lurking risk.
This tight rope market remain vastly overbought and pushing against resistance but is currently impervious to risk. The next few days and weeks may put this risk free attitude to the test. Key to keep an eye on all of these lurking risk factors.
Here's 3 Risks To The Bearish View.
The QE Candy .
The REPO Fuel.
The Rate Cut Cake.
Stocks are expensive because the Feds pumped over a trillion dollars into the market and continue to pump billions daily. The FED stops pumping money or even talks about raising rates, say good bye. QE is not an indicator of a healthy economy, but a very weak one.
Investing in stocks can be a smart move, but you have to be careful.
Welcome to The Atlantis Reports.
The first sessions of the stock markets in 2020 were characterized by new highs, accompanied, however, by a return of volatility. In particular, political tensions in the Middle East have contributed to the uncertainty of recent days.
Based on this scenario, we indicate some questions that could accompany the equity markets during 2020. In the following analysis, we try to answer each of the questions.
Will there be a recession in the United States or globally? No. We believe 2020 should show a continued recovery of economic activity, albeit moderate. We expect growth to remain around trend levels for the main economies, but we believe that the United States could offer a positive surprise .
Will the US-China truce on the commercial front hold up? Yes. We expect the recent ceasefire to continue as both sides have strong incentives to avoid further escalation. However, we believe that other "phases" or an all-inclusive trade agreement are unlikely, with the negotiations likely to stop.
Will the United Kingdom manage a trade agreement with the European Union by the end of December? No. Boris Johnson has campaigned to "end Brexit" and has not further extended the transition period beyond December 2020. However, we believe that a complete trade agreement is unlikely to be reached in a matter of months. We expect an extension, but we recognize the possibility of continuing with the WTO legislation to continue negotiations from the outside.
???? For the full transcript go to https://financearmageddon.blogspot.com
???? Donate to help The Channel: https://tinyurl.com/vqbgwld
???? Amazon Affiliate Links : https://tinyurl.com/sqwekhd
Support the channel by clicking here before you start shopping on Amazon: https://tinyurl.com/sqwekhd (heck, even bookmark it for future use if you're feeling extra generous).
Thank you to all my loyal fans i love each and everyone one of you Please **like and subscribe**
???? Follow us on Facebook : https://www.facebook.com/theatlantisreport
and on twitter : https://twitter.com/atlantis_report
????Recommended Economic and Financial books :
Destined for War: Can America and China Escape Thucydides's Trap? https://amzn.to/33RwG52
How an Economy Grows and Why It Crashes by Peter Schiff : https://amzn.to/33Tk8Ky
Bitcoin: The End Of Money As We Know It https://amzn.to/31TXAqX
The Death of Money: The Coming Collapse of the International Monetary System https://amzn.to/2L2688q
COPYRIGHT DISCLAIMER:
Under section 107 of the Copyright Act of 1976, allowance is made for “fair use” for purposes such as criticism, comment, news reporting, teaching, scholarship, education and research.
This presentation contains images that were used under a Creative Commons License. Click here to see the full list of images and attributions:
https://link.attribute.to/cc/713393
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