The Dow and S&P 500 ended a choppy session Friday with minor gains, extending their winning streak to a third day. Gains in financial and tech shares offset a downbeat sales forecast from Nike. The Dow and S&P inched up roughly a tenth of a percent, but the Nasdaq closed flat. Despite a steep sell-off on Monday sparked by fears of a default by developer China Evergrande, the markets recovered to eke out small gains for the week. Evergrande missed its key interest payment Thursday, but American investors took the news in stride Friday, which surprised TD Ameritrade Chief Market Strategist JJ Kinahan. “It really is amazing. Again, going back to what I said earlier, it shows the power of the Fed at everything. That being said, I think as an investor, you can’t look at what went on with China Evergrande and just say, ‘Oh Monday. It’s over. Time to move on.’” China’s central bank banned the trading and mining of cryptocurrencies. That yanked down the price of bitcoin and other cryptos, as well as digital currency-related companies such as Coinbase Global, MicroStrategy, and Riot Blockchain. NN: It was the typical bear trap this week. Now you know why this raging bear is standing aside. You might note every major investment bank declared that the correction would be 20% or more. For now the millennials have been taught to buy the dips, borrow more and have no fear. They believe that a correction is 5% and a buying opportunity. As far as their experience and knowledge base goes the days of market corrections are over,,,, because the FED has their back. We both know this will end badly. But we must have three 3 key events kick in:
- The Fed soon raising rates when they get desperate and realize that they started a consumer inflation fire storm.
- They bring this over stimulation to a end that has created bubbles. Real estate, the stock markets and debt markets have been flooded with liquidity… Their is no reality in market valuations.
- Shutdowns not to be confused with lock downs. The plague is still with us with more virulant mutations coming in waves, To open the economy ie Travel, restaurants, crowd fests and schools is a mistake of biblical proportions,
The unfortunate decision of not rolling out vaccines to the kiddies. Coupled with the confusion and delay in the third vaccine means they have created what will be the most devastating wave of the plague to date.
The economy and markets will be devastated,,,,,,,