Forex EUR/USD Daily Video, November 02, 2020

ward133

Corporal
Messages
91
Good morning,

Fundamental background brings a lot of uncertainty and makes our ability to forecast the situation limited. Still, currently overall picture supports downside continuation rather than sharp reversal:


Mr Sive.
Question about stocks please.
In general you think if trump will won we could see rally up in stocks ? Or In favor of whom ?
You think it’s time to invest in stocks for a year or two coming ? Cause I think that somehow the world has to find delusion for bad economy soon. Otherwise people will hurt badly !
 

Sive Morten

Special Consultant to the FPA
Messages
14,023
Mr Sive.
Question about stocks please.
In general you think if trump will won we could see rally up in stocks ? Or In favor of whom ?
You think it’s time to invest in stocks for a year or two coming ? Cause I think that somehow the world has to find delusion for bad economy soon. Otherwise people will hurt badly !

You're spot on with your question, mate. Theoretically Biden victory is better for stock market - more stimulus, more growth more inflation. This is classic democrats approach to economy. But, whoever will win - both sides anyway will provide stimulus sooner or later.
The problem could be as I said, if investors will have to sit on the cash and bonds longer, because of elections collapse - delay in result, Supreme court involving, social unrest and so on. Unfortunately this is out of our control. Second - CV19. If no relief will happen within 1-3 months, it could put people in depression and change the sentiment. Thus, I would say in perspective of 3-6 months risks of investment are significant. But, if you would buy with small packs gradually on any drop - it is acceptable decision, as market mostly depends on factors that out of our control and forecasting.

For instance, on DAX I'm watching for 10K agreement area, as this is major 5/8 support and COP of pandemic collapse. Besides, statistically this is also average level. Quite acceptable for long-term portfolio investments.
 
Top