Digital Finance Analytics (DFA) Blog – Page 154

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/

In This Inflationary World, Where Are The Digital Chips Falling?

In today’s show we look at some the latest developments in the digital finance space against the latest economic news.

First American consumers — the U.S. economy’s main engine — showed little hesitation on spending last month despite the fastest inflation in three decades, setting up the economy for a year-end growth spurt.

Purchases of goods and services, unadjusted for changes in prices, increased 1.3%, the most since March, the Commerce Department said Wednesday. Even after accounting for higher prices, spending still exceeded projections in a sign that consumers started their holiday shopping early.

Jerome Powell of course has been renominated to lead the Fed. One factor to consider is the potential impact on digital currencies. In fact. Powell appears to deliberately avoid the central bank digital currency (CBDC) hype, despite many other central banks pushing hard for CBDCs. He consistently splashes cold water on that idea. Given the benefits the US gets from the US Dollar as global reserve currency, this perhaps symbolizes a break with globalist interests in favour of American banking interests.

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.

Edwin understands your needs. So why not engage a licensed professional to stand alongside you. With RPC you know you have: experience, knowledge, and master negotiators, looking after your best interest.

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

Flip-Flopping Markets Signal More Uncertainty Ahead!

Ahead of the US holidays, we now know Jerome Powell will still be heading the Fed with an inflation noose round his neck, more Oil is being pulled from strategic stockpiles, while the global supply chain machine continues to stutter from queuing ships trying to unload, a shortage of pallets and containers, trucks, warehouse space and drivers. No surprise then that bonds rates rose, tech stocks dopped and bank stocks lifted.

Meantime in New Zealand, they listed the cash rate again. The Monetary Policy Committee agreed to raise the Official Cash Rate (OCR) to 0.75 per cent. The Committee agreed it remains appropriate to continue reducing monetary stimulus so as to maintain price stability and support maximum sustainable employment.

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.

DFA Live Q&A: Inside Money And Derivatives with Michael Cornips

Join us for a live Q&A as I discuss the state of the financial markets, and how derivatives like options are influencing the dynamics of what is going on with Michael Cornips Founder and Managing Director of Emerald Financial, a financial services firm founded in Melbourne in 2005.

You can ask a question live via the YouTube Live Chat!

https://www.emeraldfinancial.com.au/