What cause stock markets crash this timeJohannes Röll 10 / June / 21 Visitors: 387
Today in the Stock Market, in our opinion, we are witnessing a feast during the plague. P / E ratios exceed the wildest imaginations. Companies enter ipo with a balance sheet loss and take off like a rocket right after the placement. All and sundry rushed to the stock exchange.
Yes, the world has changed a lot. But there are some unwritten rules and customs that always persist. One of them is that at the end of the rally, they start buying toxic and obviously junk assets. This is already happening. We will not specify these issuers, but we will focus on the essence - when boot cleaners and the like start talking about stocks - it's time to merge.
Technically, the S&P will face a significant correction due to divergence. It seems that many who see this and got on the shortstop have been carried away by the shortwing. But endless growth is a utopia.
For growth and collapse, some occasion or reason is needed. Serious or stupid - it doesn't matter - they will find you if necessary.
What will be the trigger this time? Where to look and what to follow to "make legs"?
We assume that it will be traditionally China. What? China is the main serious adversary on the world stage for the United States. The most it is to dump any jambs on it and then gouge at any opportunity.
Already, there are attempts from WHO to obtain data from China on the origin of the covid virus. If they suddenly find someone who muddied this whole pandemic, then it is unlikely that there will be someone who will show that he clung to it. Just as they once mercilessly began to fight terrorists after 9.11. And to remove the WHO itself is also a topic.
Another option is to start a conflict in the China Sea between Japan and China.
In any case, it is necessary to shake out from the list of owners of assets (shares) all "passengers" unnecessary for the world elite. If someone has an opinion that someone is going to share something with someone, then these are idealists. Life with idealists is more beautiful and diverse, but the rules of the stock market are ruthless, especially to ordinary investors.
At the end of the article, I will add the thought that for sure a collapse can happen so quickly and suddenly that many will remember the speed of cleansing the stomach after drinking a cocktail from a glass unwashed by a waiter on a beach in one of the countries of Indochina.
I am writing about all this without having a position in the market (trading arbitrage) and therefore no posture presses on me to catch from the information flow only what is more pleasant for the ear.
I wish you all good health and good luck in your business.
Johannes Röll was born 1978 in Brilon,Germany. Graduated RWTH Aachen University. Over the past ten years he worked as Head of the plastic card team, where he was mainly responsible for the development of the distribution, Head of sales Department and Financial Analyst,where he got experience in planning and support sales figures for branches. For the present he works as freelancer