Hi Everybody,
In the Western world the exaggerated Covid quarantine requirements exacerbate the the supply crunch affecting severely workers along all the line from truck drivers to factory employees.
Now Omicron starts to spread in China and their zero tolerance for COVID cases is leading to production and transportation disruptions in the country. For instance the Chinese industrial city of Ningbo has been shut down due to COVID-19 and the lock-down has caused its port to continue to be backed up.
This should add oil to the fire and push inflation even higher.
China;
China is already aiming at the 6G.
www.bbc.com/news/av/...-asia-china-54852131
Geopolitics:
The U.S. is debating imposing additional sanctions on Russia over the Ukraine crisis. Sanctions could be imposed on some banks and financial institutions, as well as tightening restrictions on Nord Stream 2. Individual sanctions and entities in the extraction sector are possible as well. Russia warned that this would severely damage ties with the
U.S.
Saudi Arabia:
Saudi Arabia mostly known for oil and natural gas, is in the process of becoming a mining center as well.
Platinum and Palladium:
Platinum could gain from its role as an energy metal. The world is coming round to the idea that hydrogen is the solution for long-distance transport and for industrial processes. But electrolyzers and fuel cells use platinum...
Conclusion:
No change: The tightening liquidity will hurt the market and we can expect a correction of a 20% magnitude. The Fed will panic and reverse course. That should be a good buying opportunity. Chinese stocks are cheap , the slow down of the Chinese housing market may prompt some investors move capital from housing to stocks. Gold and Cryptos should suffer while liquidity restriction occur but will soar later on. The US with Biden and Pelosi are committing suicide, China on the other hand is looking forward.
In the Western world the exaggerated Covid quarantine requirements exacerbate the the supply crunch affecting severely workers along all the line from truck drivers to factory employees.
Now Omicron starts to spread in China and their zero tolerance for COVID cases is leading to production and transportation disruptions in the country. For instance the Chinese industrial city of Ningbo has been shut down due to COVID-19 and the lock-down has caused its port to continue to be backed up.
This should add oil to the fire and push inflation even higher.
China;
China is already aiming at the 6G.
www.bbc.com/news/av/...-asia-china-54852131
Geopolitics:
The U.S. is debating imposing additional sanctions on Russia over the Ukraine crisis. Sanctions could be imposed on some banks and financial institutions, as well as tightening restrictions on Nord Stream 2. Individual sanctions and entities in the extraction sector are possible as well. Russia warned that this would severely damage ties with the
U.S.
Saudi Arabia:
Saudi Arabia mostly known for oil and natural gas, is in the process of becoming a mining center as well.
Platinum and Palladium:
Platinum could gain from its role as an energy metal. The world is coming round to the idea that hydrogen is the solution for long-distance transport and for industrial processes. But electrolyzers and fuel cells use platinum...
Conclusion:
No change: The tightening liquidity will hurt the market and we can expect a correction of a 20% magnitude. The Fed will panic and reverse course. That should be a good buying opportunity. Chinese stocks are cheap , the slow down of the Chinese housing market may prompt some investors move capital from housing to stocks. Gold and Cryptos should suffer while liquidity restriction occur but will soar later on. The US with Biden and Pelosi are committing suicide, China on the other hand is looking forward.
t.me/WilliamBond