Recently the market has been increasing, if there are no meaningful news, and every time this slight growth is interrupted by another negative factor, that causes panic for average trader.
On Wednesday the market was increasing evenly (share market and market of raw materials and also risky assets). But then transcripts of FRS meeting that was held on 20-s of June were released stating the decrease of growth of US economy from 2.4% down to 1.9%, and everybody started panicking and the quotations started deflating.
It is very good that there are sensible people and they remember that Ben Bernarke has already mentioned these data after the meeting and the market had to overcome them. So we should not pay attention to this mishap in a newsfeed.
But the market has become very nervous every sneeze causes investor’s flu. Yes, things are not looking good, yes, Europe does not solve its problems, yes, there are problems with world trade, but globally the economy is living and growing, not actively, but it is growing, and accordingly there are companies whose profits increase. Thus, American banks got record-breaking, unseen since 2007, profit of 35 billion dollars. The total number of bankruptcies of financial organizations decreased to prerecession level. The 1.9% increase in the economy of the biggest global economy is the indicator that we should forget about crisis.
European crisis of euro zone is still there, but current weak euro is advantageous for leading member-countries, since the volume of exports is increasing. And sooner or later this crisis will be resolved, and the default of one or two countries is even better for Europe, since it will be possible to blame it for many excess expenses and debts. And wasting money on debts restructing is not the best way of using finances.
Meanwhile we keep hearing “crisis-crisis”, “recession-recession” and nothing positive. And we need to switch over to growth, otherwise we will be outstripped.Social button for Joomla