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

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/

Digital Finance Analytics (DFA) Blog
Digital Finance Analytics (DFA) Blog
Omicron Day - Black Friday or Red Friday? Market Update 27th Nov 2021 [Podcast]
Loading
/

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/

The COVID Game Is Far From Over!

According to the IMF the recovery is not assured until the pandemic is beaten back globally. And the COVID game is far from over.

In its latest Global Outlook, The International Monetary Fund maintained its outlook for the biggest rebound in global economic growth in four decades while changing underlying regional forecasts, with unequal access to vaccines further widening the recovery gap between advanced and developing economies.

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

The Coronavirus Files – Part 3: WHO’s Responsible For The Coronavirus?

Salvatore Babones is an American sociologist, associate professor at the University of Sydney, and an expert in the areas of Chinese and American economy and society. His research is related to macro-level structure of the world economy, with a particular focus on China’s global economic integration.

He has just completed an important paper on the virus. And he shares his insights with us on release.

https://www.cis.org.au/publications/analysis-papers/the-12-week-window-coronavirus-crisis-australia-didnt-have-to-have/

This is the third of a short series. The first is at: https://youtu.be/D0fCkrtgOMU The second at: https://youtu.be/s-QHs9ITKlg

The Coronavirus Files – Part 2: Taiwan Envy – How They Dealt With The Coronavirus

Salvatore Babones is an American sociologist, associate professor at the University of Sydney, and an expert in the areas of Chinese and American economy and society. His research is related to macro-level structure of the world economy, with a particular focus on China’s global economic integration.

He has just completed an important paper on the virus. And he shares his insights with us on release.

https://www.cis.org.au/publications/analysis-papers/the-12-week-window-coronavirus-crisis-australia-didnt-have-to-have/

This is the second of a short series. The first is at: https://youtu.be/D0fCkrtgOMU

The Coronavirus Files – Part 1: 12 Weeks To Eternity – The Crisis We Didn’t Have To Have

Salvatore Babones is an American sociologist, associate professor at the University of Sydney, and an expert in the areas of Chinese and American economy and society. His research is related to macro-level structure of the world economy, with a particular focus on China’s global economic integration.

He has just completed an important paper on the virus. And he shares his insights with us on release.

https://www.cis.org.au/publications/analysis-papers/the-12-week-window-coronavirus-crisis-australia-didnt-have-to-have/

This is the first of a short series.

Is The Alleged Mental Health Crisis Real?

Dr Ashley Frawley, Senior Lecturer, Public Health, Policy and Social Sciences from Swansea University joins me to discuss the question of mental health in the current crisis. Is there misdirection going on here? And what are the implications?

https://www.swansea.ac.uk/staff/human-and-health-sciences/allstaff/a.frawley/