I haven’t written for a few days because I’m answering the many questions of those who follow me, I get a lot of questions about what’s going on in the financial markets and investment ideas.
It’s weeks and months on financial markets where there’s little correlation with the real economy, Covid pandemic and emergency mismanagement has destabilized the world.
It seems incredible but financial markets have gone crazy, one day they go up and the other down, lately I have a lot of difficulty to “read” the charts and analyze fundamentals of companies (price/earnings), on the one hand we have Big Tech Amazon, Google, Apple, Microsoft, Facebook and on the other medium and small companies that in these 7/8 months have lost millions of dollars of capitalization.
Governments often (unfortunately) help strong companies, is it enough to look at the airlines how many billions of dollars they have received in this period, while small and medium-sized enterprises?
So many of them have already closed and others will have to declare bankruptcy (Chapter 11) because they have not been supported by either government or banks, and question: all the millions of workers who have lost or will lose their jobs?
It makes me laugh when they say on television, there will come a 200 billion dollar aid plan (example) for the economy, I wonder, but where is this money going? I am sure that some of you think like me, but unfortunately we have to suffer this situation in the hope that it will change.
When Donald Trump took the coronavirus and two days later the financial markets went short and after not even 48 hours they had already risen because the President of the United States reassured everyone about his state of health.
Today it is enough a “tweet”, a fake news or a stupid thing to move the world stock exchanges, it seems incredible but it is so and will be more and more. All this news makes the game of high frequency traders who earn when there is volatility in the financial markets.
Not to mention the banks that will have to manage bad loans and any new lock downs that will give a blow to the real economy, several banks will be forced to merge if they do not want to fail.
This merger process is essential to cover losses, strengthen capital, reduce costs (layoffs) and implement technology platforms. Translated into simple words – technology – automation – workforce.
- Slack technologies
- Eni (long term)
- Pirelli (long term)
- Pfizer (long term)
- Utilities (se vincerà le elezioni Joe Biden)
For those who trade intraday or multiday I recommend to use stop losses “tight”, in a little there will be the US presidential election (Donald Trump vs Joe Biden) and the exponential increase of the infections as the winter season begins while it will cause a sharp increase in volatility.
Be careful, if you have no experience or are emotional it is better to wait for better times.