Will the U.S. and China leaders intend to wreck the world economy? [From Tomoaki Sugimura’s newsletter]
From the investment email magazine "Sugimura Tomo Investment Salon" by Sugimura Tomo provided by GogoJungle, here is a small excerpt from what was delivered today.
The Dow Jones on the 5th fell sharply by 767 points to 25,717. This day, they are wary of China’s retaliatory measures (in response to the fourth round of additional tariffs, instructing state-owned enterprises to stop buying U.S. agricultural products).
Well, the US-China trade war shows no signs of abating. The Fed seems forced to cut rates by a total of 0.5 percentage points within the year to brace for an economic slowdown. Interest rate futures are pricing in a second and third rate cut. In response, the foreign exchange market is seeing the yen rise (moving into the 105 per dollar range). With this, ... Perhaps people will think, “For now, dispose of holdings and raise cash比例.”
That is the phenomenon where selling begets more selling. Moreover, recently many investors have been short-term and trend-following. There is no tactic for buying on dips. Furthermore, risk hedges such as risk parity among institutional investors accelerate the stock price decline. Also, the thin buy/sell (order book) leads to sharper drops in stock prices.
from “Sugimura Tomo Investment Salon” (Tomo Sugimura)Quoted.
Both the Dow and the Nikkei are continuing to fall. On the other hand, according to Sugimura, all the historical market wizards are bargain hunters. To achieve substantial profits, it seems crucial to aim for buying in this dangerous market. (Editorial board)
