Martin North – Page 153 – Digital Finance Analytics (DFA) Blog

Words Matter In A Fractious Overvalued Market!

The Fed has to balance full employment and stable prices. Today we got the signal that the latter rather than the former is now set to take centre stage. This is significant, to say the least when market values are bloated thanks to money printing, and inflation fears are rife – despite the unknowable impact of Omicron. This is significant for the US and global markets, as well as our own.

Federal Reserve Chair Jerome Powell comments on Tuesday before the Senate Banking Committee, where both Democrats and Republicans expressed concerns about high prices, were taken as a hawkish pivot by financial markets that could deliver sooner-than-expected increases in interest rates next year.

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FINAL REMINDER: DFA Live Q&A: Investing Now with Damien Klassen 8pm Sydney Tonight

Join us for a live Q&A as I discuss the state of the financial markets with the Head of Investments At Walk The Wold Fund and Nucleus Wealth Damien Klassen. Given the latest signs on inflation and interest rates, how does change the investment game? You can ask a question live….

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Tis But A Flesh Wound! – The DFA Daily 30 Nov 2021

As expected, markets reacted more positively on Monday after the Friday Omicron falls.

The WHO said on Monday the Omicron coronavirus variant carried a very high risk of infection and multiple countries joined the list of those who have identified cases. And advised its 194 member nations that any surge in infections could have severe consequences, but said no deaths had been linked to the new variant.

The S&P 500 rebounded Monday, led by tech as investor risk appetite returned. Investors bought the dip, taking advantage of the sharp sell-off in tech stocks. But there was also a bit of news. Twitter founder and CEO Jack Dorsey said he would step down from the social media company.

The latest edition of our finance and property news digest with a distinctively Australian flavour.

Go to the Walk The World Universe at https://walktheworld.com.au/

Today’s post is brought to you by Ribbon Property Consultants.

If you are buying your home in Sydney’s contentious market, you do not need to stand alone. This is the time you need to have Edwin from Ribbon Property Consultants standing along side you.

Buying property, is both challenging and adversarial. The vendor has a professional on their side.

Emotions run high – price discovery and price transparency are hard to find – then there is the wasted time and financial investment you make.

Shoot Ribbon an email on info@ribbonproperty.com.au & use promo code: DFA-WTW/MARTIN to receive your 10% DISCOUNT OFFER.

Omicron Day – Black Friday or Red Friday? Market Update 27th Nov 2021

The extended stock values around the world, created by too much Central Bank and Government financial support, makes them prone to react to news be it bad or good in a more extreme way. As we said a couple of days back, given the liquidity often it’s a matter of switching between sectors based on the latest news trail but Black Friday turned into Red Friday as markets reacted to the news of a potentially dangerous new virus strain – now named the omicron strain. This was an dis-quieting wake-up call.

In the past we have seen dramatic V-shaped reversals, so it’s a question of being patient and waiting for what unfolds in the early part of next week. Often during holiday periods, we do see the market makers develop trap moves on low volume and low liquidity.

The other question testing markets is their belief that The Fed will step in to prevent market falls, as they have done consistently over recent years. But the new take on inflation, as represented by Powell’s acceptance statement – which referred to inflation management as a key priority suggests more limited room for manoeuvre. And horror of horrors, what if the FED does not protect investors, well then, the over cooked markets are due for a significant correction. Valuations are simply not justified on current metrics.

Go to the Walk The World Universe at https://walktheworld.com.au/