Posts in English (9/9/2022)
- With some short-lived exceptions, for the A.A. the imported injections of composure are absent.
Major Asset Managers, returning from the Summer break, with the Fed clarifying its position (this has been called for for quite some time) and with the Drawdowns hitting some statutory levels, any moves liquidation often take the form of “panic selling”, i.e. an avalanche that “punishes” market valuations.
Bonds are a typical example, which are under possibly the greatest pressure and the most negative publicity of the last forty years.
Not all of them are so “marketable”, so whoever managed to find the exit, managed to find a way out, which puts pressure on prices and additionally raises yields, dragging the entire interest rate curve, i.e. the cost of money, i.e. borrowing, upwards.
Gold continues to “strain” around the critical supports of the pandemic outbreak, despite multi-year inflation records and the absence of optimism that the price index will stop.
Oil at an 8-month low is a “victim” of the recession (reduced demand) but also of the speculation that the global supply will increase.
When the Markets have a negative psychology, then “along with the dry, the green are burned”, but this does not mean that the internal, the true intrinsic value of the valuable securities, is destroyed due to the temporary superiority of the sellers.
And when investors’ instincts become foolhardy, then technical analysis loses much of its value. And when they are not “married” with a more holistic assessment of reality, they can even turn to “boomerang”, whether the Stock Market is in a “bubble” or a “bearish” phase.
At A.A. neither panic nor overoptimism is indicated. Opportunities will arise, but the key is to maintain liquidity.
Markets are constantly moving, even when the spot is closed.
Πέτρος Στεριώτης (Χρηματιστής) Petros Steriotis 