There are just a few days left for a stimulus deal to pass, so the market stepped in, having urged for an agreement with a dip from the recent all-time-high. That same market has often received what it wants, leading us here today, where policy is made to pacify investors. That is, pacified until their next demand.
“NASDAQ and S&P close at all-time highs. Congratulations!” Donald Trump tweeted
This comes as no surprise as Trump has rallied behind the stock market time and time again, cheering like a bull for new highs on the same day that a vaccine was backed by the FDA. The coincidence is obvious and this behavior is repetitive. But, once rumors of the shutdown were heard, markets retracted for fear of the unknown.Over the next few days, American officials must come to an agreement on a stimulus package. If they fail to, there will be a government shutdown, not to mention the market’s reaction. We will not address the political implications but rather the market response. Revealing that even a hint of a stimulus delay, will result in a market-wide drop. Remember, this comes the day after a positive vaccine was announced.
So, will an agreement be made on the stimulus? With under a week remaining a vaccine was squeezed out, having been recently approved in both America and Canada. Thus, it is likely the stimulus will now follow:
Canada Covid19 vaccineInvestors will take this current dip as an opportunity. Just under 1 trillion USD is waiting to be released as a stimulus package, and we all know that means more inflation. The market wants insurance before it moves up higher. But as the old saying goes, beware of what you wish for. Here at ChainMyne, we offer a platform to move your wealth into the emerging market of cryptocurrencies, where you can hedge against the next wave of inflation.