In reality it should have already happened, remember a few months ago I told you that you had to wait for the second “downward leg” as we say in the jargon of the markets, and, the decline did not come. .
Not only did it not come, but it is an almost exponential increase that we were able to see in the markets.
Why, when everything was going badly, everything started to go up?
Because central banks and states by making economic agents more solvent by paying money directly into bank accounts have inflated corporate profits, by increasing corporate profits, we logically obtain a rise in stock market prices at the jack, but an increase all the same.
In France we spent 425 billion euros that we did not have. In the United States, it is each time plans to 2 trillion dollars directly poured into the portfolio of households or companies.
This aid policy, not unpredictable but on an unprecedented scale, is the cause of the rise in the stock market and its dazzling recovery and the absence of a fall.
A rise at the jack, but a really very strong rise!
So after the jack, the crash and the big crack eat me?
Undoubtedly not, or in any case, for this to be the case, there are conditions to be respected!
It is above all the level of interest rates that conditions stock market prices and triggers crises. Beyond interest rates we can extend the idea to monetary policy in the broad sense. In the current situation, we must understand interest rates plus injections from central banks, without forgetting the stimulus plans or state support.
As long as the infusions last, and in data corrected for fear of returning inflation, the markets should hold up.
The real problem will arise when it is necessary to really stop the aid … will we re-enact the tapering scene of 2018, where the FED made believe that it could raise the rates before changing his mind in the face of the squealing of the stock markets ?
I tell you almost everything in this video where I share information with you to enrich your thinking.
It is already too late, but all is not lost. Prepare yourselves !