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Market strategists warned that the “October classic stock crash” is coming



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This time is different. Even worse.

Bill Blain, a strategist at Shard Capital in London, made an ominous statement on the stock market on Thursday after he called it “the most critical election in global history”, and investors are struggling to cope with the surge in the number of coronaviruses. problem.

He wrote in his blog: “The winter lockdown, worries about the second and third waves of infections, and the prospect of a faltering economic recovery in Europe have caused stocks to plummet and plunged the market into a full-scale decline.” “This may be. The last few days of the month, but it feels like a typical October car accident.”

His bearish view is mainly based on his belief that once the “dark and dirty truth” of quantitative easing is finally realized, all the free stimulus funds will ultimately be ineffective. He said: “You can fool the market through large-scale rescues to deal with a catastrophic crash, but no quantitative easing measures can stop a tiny virus that is a billion times smaller than a computer screen. [from] Do your best. ”

So, what should investors do for the next thing?

“We will overcome this epidemic, which means that the basic inventory is constantly increasing!” he said. “However, deepening the lockdown and the economic fabianism required to fight the virus means that there may be more market pain.” He urged investors to choose “your timing…carefully re-enter the market” because he Considering his personal approach from next Tuesday.

He continued: “I am developing my post-election strategy for the United States.” “And I am frankly wondering if it is worth the time and effort.”

Sell ​​oil to prevent Biden from winning and promote green energy development? Technology stocks that are short-selling due to the threat of industry suppression? Adjust the yield, worry about the future slope of the yield curve? Obviously there are many moving parts. “Should I admit that the appeal of further investment in the United States now looks… [q]May I? Bran asked. Maybe I should invest elsewhere?”

In his opinion, there are reasons for the low stock prices in Europe and the UK, and he is not entirely willing to increase investment there, so Brian set his sights on other places.

He explained in the “Morning Porridge” note: “This morning, I will fill out a self-trading compliance form to transfer part of my PA portfolio to Asia.” “The western part of the global economy has spread in the pandemic. , And Asia is recovering and operating.”

At the same time, with only a few days left in October, the Dow Jones Industrial Average (DJIA) did not form a market crash on Thursday.
+ 1.22%,
Nasdaq Composite Index
+2.46%
And S&P 500 SPX,
+ 2.01%
After being hit hard for several days, all transactions rebounded moderately.


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