-Alas, my interpretation of what is happening in the market based on events and money flows
-There is a major disconnect between equities and the economic hardships
-Financial media has struggled to explain this and often lumps in price movements with some very disconnected narrative
-In short, my belief is that the NASDAQ stopped falling when the SP 500 found support on the moving averages and has helped it sustain a more bullish technical position
-The bulk of the sell off was also premised on very weak money flows, calling for a V shaped bounced
-Short-term USD strength, stimulus, and low bond yields have driven a thirst for blue chip companies with high likelihood of sustaining dividends
-However, there is a limit to this upside, we are still in a bear market and equities will crash as we face major hurdles of economic re-structuring in the 2020s, especially because these equities are getting *extremely* crowded
-We will be reaching a tipping point very soon where the real returns will be to short these equities back down
-Do you want to hold microsoft for a 0.51 dividend yield? Or a 50% return on a short position (without leverage)?
-Further explanation can be found in my post on the SP 500 mini
-If you enjoyed this analysis hit the like and follow for more!
-There is a major disconnect between equities and the economic hardships
-Financial media has struggled to explain this and often lumps in price movements with some very disconnected narrative
-In short, my belief is that the NASDAQ stopped falling when the SP 500 found support on the moving averages and has helped it sustain a more bullish technical position
-The bulk of the sell off was also premised on very weak money flows, calling for a V shaped bounced
-Short-term USD strength, stimulus, and low bond yields have driven a thirst for blue chip companies with high likelihood of sustaining dividends
-However, there is a limit to this upside, we are still in a bear market and equities will crash as we face major hurdles of economic re-structuring in the 2020s, especially because these equities are getting *extremely* crowded
-We will be reaching a tipping point very soon where the real returns will be to short these equities back down
-Do you want to hold microsoft for a 0.51 dividend yield? Or a 50% return on a short position (without leverage)?
-Further explanation can be found in my post on the SP 500 mini
-If you enjoyed this analysis hit the like and follow for more!
Kommentar:
I should correct a mistake, which is that we didn't "reach new highs" but rather approach new highs.