The latest Investing Matters Podcast episode with London Stock Exchange Group's Chris Mayo has just been released. Listen here.
Pretty much Chris.
So wages are falling, jobless rate has risen at its fastest pace since 08 crash, and it's summer so seasonal employment at its peak, yet people still falling out of work, furlough still going protecting most jobs but that ends soon, and markets up 1.5% because...? The US is getting some money maybe? Penny has to drop sooner or later, or the markets are so devoid of and real value that it doesn't matter.
You think? The easy money from the Feb/march crash is over.
The whole.market is overcooked. As soon as any of the big brokers thing this rally from cheap.cash is over they'll start selling their positions. Time to open shorts. No shares are supported by company fundamentals anymore.
Doesn't look like the 750billion euros is even guaranteed now. Since Germany thinks it's out of the woods, it won't green light more debt for other member states.
UK debt to GDP reached 100%, yield on UK bonds went negative. ECB has printed €5trillion and €4trillion of it is negatively yielding. It seems that debts and QR matter very little anymore. MMT has gone out the window.
Denby. You sure about that? ECB and BoE have given the banks unlimited cash and they're pumping it into the equities as bonds are negative.
It was on Bloomberg.
There are about 5 different prices for gold quoted globally. (Possibly more I don't know off, not a commodities expert). There's the US futures spot gold, morning and afternoon spot gold, UK weighted spot price and commodity gold spot price.
Barclays finally reported today what most of us have been saying for weeks. The buying in stocks is over done (mostly paid for by central banks, cheap loans, QE and massive bond buying even into private equity). Economies will not bounce back like.the markets have, Q2 data from companies will be terrible, not just a Q1 blip. I doubt we'll see the march lows, but I think about 15% down on most major indexes over summer.
Endless supply and cheap or almost free cash from the central banks, being funnelled into the finance sector, who have all decided to pile into equities. Eventually it'll come down only when the larger holders think the yield has dried up. So close to February highs I reckon.
The global equities rise has matched the central banks QE and bonds for equity conversions from the US, ECB and BoJ. That cash ran out last Friday from the Fed. And it's waiting for the €600billion from the ECB next week or the week after. Fundamentals are on the floor, stock markets are all stupidly overbought and overvalued, but there's trillions in cheap or free money from central banks being poured into equities as bonds are paying nothing.