The US stock markets organized “a Christmas Carol”
So, S&P500 has soared, only slightly before reaching key support near 2300 points (a reversal has occurred with the level of 2315). Overall growth from the low levels reached 6.65%, the market is “relieved” and even began to appear joke that rally with Christmas moved to the Orthodox Christmas.
Of course, wanting to explain what is happening in the market, a great many because the events after the fact to argue at times easier, than to Express an opinion with regards to a possible future price behavior. Prevail in the TOP list of the reasons. market calls Donald trump, who following the example of Barack Obama urged Americans to “save” the stock market. And to save it as? Right, buying shares.
If there is enough calls trump for long-term growth? In fact, because nothing has changed. The problem of falling stock market associated with the actions of the fed, but nothing has changed and the change does not plan.
Now, if Powell came to the investors with repentance, and an assurance that the fed will cease to withdraw liquidity from the market, then this step really would have sacred meaning and serious impact. Compare “rally trump” with the “Obama rally”, at least short-sighted.
Successor trump, President Barack Obama gave the green light for the purchase of shares, stating on 6 March 2009 that the coefficients of the value of shares in relation to net profit dropped to those levels, when the purchase of securities becomes a bargain.
Now trump has decided to repeat this number, however, in more simple wording, and saying that America has the largest company in the world, and they are all well, and this is a great opportunity to buy them.
Listened to Trump ordinary Americans or not – is unknown. But it is interesting that the increase was due to the infusion of huge amounts of pension funds. Pension funds, traditionally the largest investors in the stock market of America should rebalance their portfolios, and the possible volume of purchases of their stock is estimated at $64 billion.
Of course, this “money rain” pension funds will provide support to the quotes, but I don’t think this will last long. While $64 billion is serious money, however, is to compare them with the amount of liquidity that the fed withdraws from the market – and it is about $30 billion per month. Accordingly, to speak about the complete turn should not be. While the incident is regarded as a Christmas miracle that will inevitably drab.
“International financial center”