Chapter 1674 (1/2)
On Saturday, March 14, at the meeting of G20 finance ministers and central bank governors, which ended in holsham, UK, the G20 announced that it would ”take all necessary measures” to restore economic growth, and the most important thing is to restore credit by solving problems in the financial system.
The statement of this meeting undoubtedly has a positive impact on financial markets.
Federal Reserve Chairman Ben Bernanke said Friday that there have been some positive developments in the U.S. financial market recently. If the financial system can operate normally, the recession may end within this year. He stressed again that the U.S. will not repeat the Great Depression of the 1930s.
That is, on the same day, Barclays Bank of England announced that its business had a strong start in 2009. This is another positive signal from a large financial institution after Citigroup, Bank of America and Mg chase etc.
The above factors have further boosted the improving market sentiment, with Wall Street stocks rising on Monday, the 16th.
In this atmosphere, the risk appetite of investors in the foreign exchange market increased, leading to the decline of the US dollar as a safe haven currency.
In this case, in the afternoon, I don't know where the rumors of the US Federal Reserve's upcoming trillions of US dollars of large-scale quantitative easing policy came from, which surprised the whole market and caused severe market shock.
As a result, the price of us long-term treasury bonds soared, and the yield of long-term treasury bonds reflecting the level of supply and demand ushered in the biggest one-day decline since 1987.
Affected by this rumor, the Dow Jones 30 industrial stock index on the New York Stock Exchange had a weak downward trend. It immediately turned around and climbed up, or even reached 1.2%, led by all financial stocks.
U.S. home mortgage rates immediately fell to a record low of around 5 percent.
While investors are optimistic about short-term market liquidity, concerns about the depreciation of the US dollar and the risk of future inflation are quickly reflected in crude oil and gold prices. After the news came out, the dollar began to fall against most major currencies, and the price of gold soared 6% to 962 US dollars per ounce.
”Tut Tut, what a quick result!”
As the originator of the news and market shock, Andy Smith sits leisurely in the boss's chair and looks at the real-time picture of the command center of Gaia company in New York through the computer monitor with a smile on his face. He smashes his mouth and laughs proudly at the same time.
”Boss, the financial sector has rebounded 54% since US stocks hit multi-year lows on March 6, so we should take profits.”
Bardstone's face appeared on the computer monitor and put forward the suggestion of selling. More than 50% of the earnings have been crazy. Although not all the stocks he bought have such a large earnings, in a few days, the earnings of more than 1 billion can be grasped by hand.
”Yes, but don't move too much. Spread out slowly and don't cause market turbulence.”
Andy also knows that it's time to start taking profits. As for why he doesn't wait, maybe he can go up a bit.
Ha ha, everyone wants to ship at the highest point, but who can do it? Do not be greedy. If you can't control your YW, you'd better not operate short term.
This time, Andy dropped 10 billion dollars. Except for some blue chip stocks that will be held in the medium and long term, most of them will be operated in the short term. Therefore, they have gained a lot, and it's time to close as soon as possible.
At this time, the strong rebound of the U.S. stock market for more than a week has gathered the pressure of profit taking. The longer the time is delayed, the greater the risk is. Knowing that there will be a decline, I can't prepare early. When the time is down, selling will not only reduce the revenue, but also make the panic mood which is not easy to dissipate again diffuse and trample, A precipice plunge.