U.S. inventory markets are closed right now in observance of the July 4th Independence Day vacation. Subsequently, it’s crickets on Wall Avenue wi
U.S. inventory markets are closed right now in observance of the July 4th Independence Day vacation. Subsequently, it’s crickets on Wall Avenue with merchants hitting the highway to take pleasure in some solar and the three-day weekend. The foreign exchange and cryptocurrency markets stay open, though there isn’t a lot to report. Tight every day ranges are the rule as liquidity is proscribed.
Vacation classes are a good time to take a step again and acquire some perspective. Right here’s what we all know going into the second half of 2020:
- The COVID-19 pandemic stays the primary market driver.
- As of now, Trump’s reelection bid is doubtful. Oddsmakers are itemizing Trump as a 6/5 underdog to win about 120 days out from the election.
- Gold and safe-haven values stay robust.
- Oil has roared again from all-time lows.
- The USD is fading vs the majors.
- The U.S. equities indices are inside 12% of their all-time highs.
- Led by the FED, central banks world wide stay dedicated to huge QE.
Should you add these issues up, the image on Wall Avenue is murky, at finest. The attainable eventualities that will transpire from now till New Yr’s Eve are numerous. Make no mistake ― the approaching 5 months pose essentially the most uncertainty in fashionable world historical past.
No Matter What, Wall Avenue Likes Danger
Under is a take a look at the month-to-month chart for the Dow Jones Industrial Common (DJIA, DOW). It provides us a take a look at U.S. massive caps from 10,000 ft, however supplies surprisingly little perspective. Mainly, we’re within the midst of unprecedented volatility and nonetheless face extra questions than solutions.
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Listed below are two key long-term numbers for the DJIA shifting ahead:
Overview: Honestly, nobody actually is aware of what’s going to occur throughout Q3 and This autumn of this 12 months; not Wall Avenue, not the FED, and particularly not the mainstream media. At this level, all we are able to do is take it in the future and one commerce at a time ― the long run will maintain itself.