Another portion of steroid growth, and a new attack on Ma

29 Ara 2020

Yesterday in the financial markets were concentrated on the news that Trump had signed a stimulus bill for the US economy and on the expectations of the second attempt by the Democrats to increase stimulus checks from $ 600 to $ 2,000 (as Trump wanted). The U.S. House of Representatives had voted earlier to increase stimulus payments to qualified Americans to $2,000 from $600, sending the measure on to the Senate for a vote. While it is not clear how the measure will fare in the Senate.

In general, there is nothing strange in the next round of growth in demand for risky assets. New all-time highs for the US stock market, Bitcoin at 27K +, the rise of commodity markets - these are links in the same chain.

In this light, as well as because of another rate hike by the Central Bank of Turkey (last week they raised the rate by 2% to an incredible 17% for the present), it is perhaps worth recalling our recommendation to buy the Turkish Lira. The huge interest rate differential cannot fail to attract profit-hungry investors. So the chances of further growth in the Turkish Lira are pretty high (all these carry-trade things).

At the same time, the markets no less habitually and traditionally ignored the potential and real fundamental negative. For example, experts predict that after the holidays it is worth expecting a sharp increase in the number of COVID cases and an intensification of the pandemic.

The oil market continued to pretend that OPEC + would not inject an additional 0.5 million b / d of oil on January 1, 2021. They also tried not to notice Russia's desire to increase production by another 0.5 million b / d from February 1.

China continued attempts to destroy Jack Ma's empire. Ma should not have criticized China's financial regulators and state-owned banks at a Shanghai summit on October 24. As a result, Ant's IPO was blocked, an antitrust investigation against Alibaba was initiated, and now Ant Group has been ordered to cut operations. The loss of a third of Alibaba's capitalization is Jack Ma's personal tragedy, but it is also a good opportunity for investors to buy shares of the company not at $320, but at $220.