The S&P 500 in the last years has made a remarkable flight until now, but the question that everybody is wondering but just some of us dare to ask is, " When the music its gonna stop?". I wonder if Icarus from the myth asked himself the same type of question before the fall.
The domestics problems of the United States are scaling and worth it to take a look. The student debt, it's setting new records like never before, reaching over $ 1.5 Trillion in debt ( by the way, the delinquency rate it's growing faster every month). The federal government is about hit its credit limit, topping $22 Trillion in debt. The auto loan delinquency it's rising worryingly too.
So when you have all these systematic domestic problems at the same time that the POTUS, opened a trade war with almost all the majors' players of the international commercial. Yes, Trump obtained some victories like USCA; In the EU even after some cooldown, there is still a hassle in some matters like the automobile market. But with China, things got messy, where there in the crossfire a total of U$360 Billion in tariffs was traded between the two sovereigns countries.
This Trade war has set the tone lately, with the pull and push playing coming from the FED, to make things spicier. But every trader that read the news every day and work at the market had seen a quite curious pattern. When the market closes in a green mood, the headlines are basically " Trade hopes lift the market" when the bears show their face on the daily candle, and the financial journals are ready to say " Trade concerns bring pessimism to the market." The effect of all this has already shown its faces at the last earnings season, with big companies cutting into profits and investments
The Cherry on top, its the inner fight between federal institutions. The wrestle that the president it's facing to get ride of the investigation about the Russian influence at the presidential elections, with Trump allies like Robert Mueller getting squeezed one by one that is a pandora box ready to blow up and spread the disgrace.
So let's take a closer and quickly look at some sectors of the S&P 500 to see where the curveball could come.
Technology - 25.78%
- Big techs had been hit hard by data breach scandals (Facebook); Drop in the sales (Apple and big chipset producers); Major fines for violations of political use (Google); Political backlash (Amazon), and other minor issues
Health Care - 13.71% - Trumps administration has put the drug price cut, as a priority goal. And this could hit hard the profits of the sector; The FDA has provided many stepbacks to the farmaceuticals.
So basically the S&P 500 it's flying straight forward to the sun, brave and stronger than never or otherwise we are watching just some delusional attempt to do so, waiting for the moment that the hopium it's going to fade away, and the smell of the wings burning coming into the nose, taking the same path of Icarus.
Thanks for reading, leave a comment and opinion if you like and have nice trades.
The domestics problems of the United States are scaling and worth it to take a look. The student debt, it's setting new records like never before, reaching over $ 1.5 Trillion in debt ( by the way, the delinquency rate it's growing faster every month). The federal government is about hit its credit limit, topping $22 Trillion in debt. The auto loan delinquency it's rising worryingly too.
So when you have all these systematic domestic problems at the same time that the POTUS, opened a trade war with almost all the majors' players of the international commercial. Yes, Trump obtained some victories like USCA; In the EU even after some cooldown, there is still a hassle in some matters like the automobile market. But with China, things got messy, where there in the crossfire a total of U$360 Billion in tariffs was traded between the two sovereigns countries.
This Trade war has set the tone lately, with the pull and push playing coming from the FED, to make things spicier. But every trader that read the news every day and work at the market had seen a quite curious pattern. When the market closes in a green mood, the headlines are basically " Trade hopes lift the market" when the bears show their face on the daily candle, and the financial journals are ready to say " Trade concerns bring pessimism to the market." The effect of all this has already shown its faces at the last earnings season, with big companies cutting into profits and investments
The Cherry on top, its the inner fight between federal institutions. The wrestle that the president it's facing to get ride of the investigation about the Russian influence at the presidential elections, with Trump allies like Robert Mueller getting squeezed one by one that is a pandora box ready to blow up and spread the disgrace.
So let's take a closer and quickly look at some sectors of the S&P 500 to see where the curveball could come.
Technology - 25.78%
- Big techs had been hit hard by data breach scandals (Facebook); Drop in the sales (Apple and big chipset producers); Major fines for violations of political use (Google); Political backlash (Amazon), and other minor issues
Health Care - 13.71% - Trumps administration has put the drug price cut, as a priority goal. And this could hit hard the profits of the sector; The FDA has provided many stepbacks to the farmaceuticals.
So basically the S&P 500 it's flying straight forward to the sun, brave and stronger than never or otherwise we are watching just some delusional attempt to do so, waiting for the moment that the hopium it's going to fade away, and the smell of the wings burning coming into the nose, taking the same path of Icarus.
Thanks for reading, leave a comment and opinion if you like and have nice trades.
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