Chief Market Strategist at FXTM
Investors
in Asia kicked off the week in an upbeat mood, with most major equity indices
trading in positive territory. The upside momentum seems to be a continuation
from Friday’s Wall Street session which saw the S&P 500 adding 1.7% and the Nasdaq Composite erasing all losses for the year following a 37.5%
rally from its March trough.
Extra-smart
Nigerians are getting shares of the new Lagos by acquiring plots, acres and
hectares of land at Ibeju Lekki . What are you waiting for? Click: http://www.tectono-business.com/2019/07/have-share-of-new-lagos-by-investing-in.html
Charts
of US major indices are already reflecting a V-shaped recovery with the Nasdaq
Composite only 7.9% short of its record high and the S&P 500 15.8% below
its peak.
For
many investors, the divergence between Wall
Street and Main Street does not
make a lot of sense especially as it seems to be widening. No figures in
history match Friday’s non-farm payrolls report, which showed a record 20.5
million jobs losses for April and unemployment reaching 14.7%. According to US
Treasury Secretary Steven Mnuchin, the unemployment rate may now be closer to
25%.
Have
you heard that Landwey is giving out plots of land at URBAN PRIME TWO ESTATE at
Abraham Adesanya Roundabout, Ajah, Lagos? You can get yours by clicking: http://www.tectono-business.com/2020/02/urban-prime-two-estate.html
While
we all know that financial markets are forward-looking and much support has
been received from monetary and fiscal policies, what we are experiencing now
is investors falling into a behavioural bias known as ‘Narrative Fallacy’.
Narrative fallacy limits our ability to evaluate information objectively, hence
we make irrational decisions. Humans can easily fall into this bias as we love
stories, and the great story right now is economies are gradually restarting with
lockdowns being lifted.
While
we all hope that we swiftly return to pre-Covid19 economic activity, the facts
will most likely prove us wrong. Today we are starting from an incredibly low
activity base. Tens or possibly hundreds of millions of jobs are already lost
globally, and many will not return in a matter of months. Even for those who
are still on payrolls, there is a high likelihood of elevated levels of savings
curbing demand. That is still not taking into consideration a second
coronavirus wave that could lead to new lockdowns if no proper treatment or
vaccine is discovered yet.
Wow!!!
Have you discovered where CEOs and top managers take their vehicles to for body
work, painting with Sikkens paint and oven baking? It’s GOF AUTOS LTD. For
details, click: http://www.tectono-business.com/2017/06/gof-autos-limited-best-automobile.html
How
long risk assets supported by unconventional policies can defy the real economy
remains an open question for now. But from where valuations are standing, it seems
a lot of the good news is already priced in, and in my opinion, the best-case
scenario is to see some sort of consolidation around current levels. Until
confidence returns to the real economy, the rally in risk assets will not be
sustainable and investors will need to reconsider their positions at some point
soon.
Are you aware that many
Nigerian exporters have been defrauded in the process of exporting their
products? To export successfully and get paid, click: http://www.tectono-business.com/2016/02/contemporary-step-by-step-guide-to.html
Do you know that
you will minimize the amount of money you spend on food items when we deliver
the foods items to you in bulk at reduced price from our farms? For details,
click: http://www.tectono-business.com/2020/02/fresh-food-items-supply.html
Successful
business managers like you have gotten big deals from sponsoring business
publications on GLOBAL BUSINESS CLINIC? For details, click: http://www.tectono-business.com/2019/05/sponsor-business-publication-on-global.html
Are
you aware that CEOs of reputable organizations like you multiply their
clientele base by just showcasing themselves, organization, products and
services on THE BUSINESS TITANS? For details, click: http://www.tectono-business.com/2019/05/are-you-ceo-showcase-yourself.html
No comments:
Post a Comment