I was asked this question by a follower. From charts perspective, I think not yet as traders continue to pile money into riskier assets and safe haven assets to hedge (like gold, yen and silver)
The Fed has realised the day will come but perhaps not this year. They are fond of kicking the can down the road. More fiscal and monetary stimulus will be implemented where necessary to shore up the economy. We don't know the impact and opportunity costs if states will be forced to close down (look at Hong Kong now) and the rate of bankruptcy will go up even higher than before.
The government does not have all the money to save each and every single company out there,they have to prioritise and sadly, some businesses despite operating for decades will have to go.
Government worldwide are scrambling for ideas to help their citizens who are made redundant or lost their jobs. They know the severe impact it would have on the economy if this job loss problem is somehow not contained and escalate. Singapore , in this aspect has done a good job.
Read article here
Side note - I think the inflation that Fed is so concerned about will go higher , perhaps leading to a stagflation
The disruption brought on by the digital age and automation is not something that government can create hundreds and thousands of jobs out of thin air. That is why I think President Trump idea of reshoring while it makes sense from his political standpoint , it will not be economically beneficial to the companies.
They must have done their sums carefully before signing up to go to China. A certain % of companies may return for whatever reasons, but the bulk of the companies that make more than 50% of their total revenue out of China are very likely to stay. Businesses are profit driven. Period.
If you want to short this pair, go to smaller time frame and look for rebound and selling signals before going short.
The Fed has realised the day will come but perhaps not this year. They are fond of kicking the can down the road. More fiscal and monetary stimulus will be implemented where necessary to shore up the economy. We don't know the impact and opportunity costs if states will be forced to close down (look at Hong Kong now) and the rate of bankruptcy will go up even higher than before.
The government does not have all the money to save each and every single company out there,they have to prioritise and sadly, some businesses despite operating for decades will have to go.
Government worldwide are scrambling for ideas to help their citizens who are made redundant or lost their jobs. They know the severe impact it would have on the economy if this job loss problem is somehow not contained and escalate. Singapore , in this aspect has done a good job.
Read article here
Side note - I think the inflation that Fed is so concerned about will go higher , perhaps leading to a stagflation
The disruption brought on by the digital age and automation is not something that government can create hundreds and thousands of jobs out of thin air. That is why I think President Trump idea of reshoring while it makes sense from his political standpoint , it will not be economically beneficial to the companies.
They must have done their sums carefully before signing up to go to China. A certain % of companies may return for whatever reasons, but the bulk of the companies that make more than 50% of their total revenue out of China are very likely to stay. Businesses are profit driven. Period.
If you want to short this pair, go to smaller time frame and look for rebound and selling signals before going short.
Comment:
watch carefully now, a strong bullish engulfing candle acting as a rebound. If it returns back into the box, then I will not short anymore.