Last night, the Fed was scheduled to release its Minutes of the last meeting, this kind of event usually inspires a lot of caution and volatility, lately because of interest rate hike possibilities, (for sure nobody wants to pay more for interest on their home loans, car loans etc) and that’s all understandable, but to get the Minutes showing concern of low-inflation which caused an upsurge in the stock prices BUT then followed with a stunning fall is very telling. It’s telling me that there is more than the rate hike that investors need to consider. There is also China’s devaluation adding fire to the pressure-cooker situation among currencies, the gold digging deep and oil sliding ($40 per barrel wow!). There is just too many assets diving and so that’s why the stockmarket has to get some selling action too,
1) take profit from winners that’s why even “defensive” stocks get sold
2) reallocate money away fr losing investments and into those that actually benefit from others’ weakness
3) markets increasingly interlinked, for example weak currencies help economies with strong exports like Japan, Germany, China obviously, and with the increased US dollar pushes down the price of gold and oil and the consequent companies with large exposure to currency movements.
In our workshops we discuss the deep reasons for this financial market moves show the strategies that profit from this volatility and market conditions. (So I am happy to tell you that we will again get to spend time in learning together with my upcoming webinars and events.)
I will send out the webinar link for registrations here in a day or two, just testing the features of my new provider.
Meantime watch these videos which I find highly informative and give further clues to the market.