The Economy is down, wait, the Market must be falling?
Let's see how the market is outperforming, even when the economy is not doing well. After all, markets are an indicator of the economy. Bad news all around. 1. Global Politics - China is in the Cold War with the US, Hong Kong, Taiwan & India. - Ahead of Trump Election Trade Deal policy hostile. - China's President Xi Jinping reiterates his support for multilateral cooperation. 2. COVID - 19 In the World - 1st phase of Pandemic is 3-4 month cycle - The risk of 2nd phase could cause economic revival, The spread is still at high speed in many countries. India Specific. - Cases are raising Doubling every 25 days at a growth rate of 2.8% daily. - Markets absorbed lockdown but if there is 2.0 wake of transmission, markets will likely sell-off. 3. Crude Oil - Crude demand dynamics have been impacted a lot due to covid surged, lockdowns, and 2020 Russia–Saudi Arabia oil price war. - WTI Crude Traded at a negative price for some time (April 19) due to excess supply and storage wor