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Happy Easter Holidays Friend, This is the latest update of what's happening in the markets...
Last week, the S&P500 continued its rally up from 2600 to a high of 2800, recovering more than 50% from the low of 2100.
This is mostly due to 2 main factors.
1) The Fed announced the "CARE" program of $2.3Trillion in unlimited Quantitative easing and more if necessary to be injected into the economy, providing unlimited liquidity to the markets and this historical action was followed in turn by major international governments all over the world. This gives investors a "Sense of confidence" that the world governments are doing all they can and more if necessary to save the economy.
2) The fact that the US dollar is being printed like free paper in the trillions of dollars put the US budget deficit at a new all time high... what this actually leads to... is a huge increase in supply of the "Greenback" in the market and thus this immediately leads a repricing of Dollar VS hard assets like GOLD and also Equities...
As can be seen immediately after President Trump and the Fed announced this unprecedented move, we can see how the market immediately repriced Gold vs USD in the chart below... |
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What does this mean for us?
Here's what this means in simple english...
1. Hard Assets like GOLD is expected to go up as more USD is being flooded into the market.
2. Equities are going to be re-priced VS the USD, especially those of solid companies with solid business models and cashflow balance sheets, low debt and are able to weather this virus pandemic for the long run. These are mainly companies in the Internet technology space, healthcare, medical and ecommerce space.
Therefore, I continue to remain optimistic about 1 and 2 above. Now for the bonus stock pick this week...
This week's stock pick is "Shopify Inc (NYSE: SHOP)". Shopify's e-commerce platform allows merchants of all sizes to build an
online presence, including storefronts and fulfillment, payment, and
shipping services.
The e-commerce platform now helps more than 1 million merchant
clients build and enhance their online shopping services. And as they
add more bells and whistles to their online shops, these clients fuel
Shopify's revenue growth of nearly 50%.
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And stay tuned to my weekly newsletter as I keep you updated on the latest
developments and opportunities for us to profit hugely from this global
crisis...
Also, I have started a new
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already,
(Make sure you download the APP to your phone and join my channel "DennisBayWay" on Telegram)
If
you will like to get exclusive access to my personal stock picks and
financial market trade opportunities, or know someone who might be
interested in these updates, feel free to share my "Global Investors Weekly" newsletter to them with this link,
Contact me to find out how you can get started... this window of opportunity is not going to last forever!
To Your Wealth, Freedom & Success!
Your Friend
Dennis Bay |
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