The dateline is 31 July 2020.
Why ? The average americans reckon that the extra money received (600 bucks) from the government would be used by this date, 31 July 2020.
With the alarming unemployment rates of millions (more than 30)of Americans and businesses still struggling to reopen their business and if Feds does not have a Plan B, it is highly likely mortgage rates is going to increase. What are they going to pay it with ?
How about those on rental flats ? Will the Landlord be compassionate further to reduce the rent?
Already states that are re-opening their economy are fearful of a backlash of the Covid-19 coming back to haunt them, thus the governor is treading on thin ice now. They are really stuck in a catch 22 situation.
In the past Quantitative easing programs, businesses and consumers are allowed to borrow at cheap rates and run their business activities. Not now with the stay at home curfew imposed worldwide. What's the point of getting cheap loans if I can't get out to the showroom to check out the latest automobile or shop at the mall ? Can every products and services be purchase over the internet ?
With so much fear, people are tightening their belt and trying to save more and reduce spending, contrary to what the Government wants them to do. Maybe, the payroll tax that President Trump was talking about in early May might be used. If implemented, it means employees received a higher take home pay (about 8% ) , a short term solution to his myriad of challenges.
Chart wise, we can see 2966 level has been rejected twice and the price action moving forward is likely to be in a consolidation pattern.
I will be watching the tech stocks that are currently driving the stock market. Their correction will be a catalyst for the long awaited downfall that many bears are eagerly awaiting.
Why ? The average americans reckon that the extra money received (600 bucks) from the government would be used by this date, 31 July 2020.
With the alarming unemployment rates of millions (more than 30)of Americans and businesses still struggling to reopen their business and if Feds does not have a Plan B, it is highly likely mortgage rates is going to increase. What are they going to pay it with ?
How about those on rental flats ? Will the Landlord be compassionate further to reduce the rent?
Already states that are re-opening their economy are fearful of a backlash of the Covid-19 coming back to haunt them, thus the governor is treading on thin ice now. They are really stuck in a catch 22 situation.
In the past Quantitative easing programs, businesses and consumers are allowed to borrow at cheap rates and run their business activities. Not now with the stay at home curfew imposed worldwide. What's the point of getting cheap loans if I can't get out to the showroom to check out the latest automobile or shop at the mall ? Can every products and services be purchase over the internet ?
With so much fear, people are tightening their belt and trying to save more and reduce spending, contrary to what the Government wants them to do. Maybe, the payroll tax that President Trump was talking about in early May might be used. If implemented, it means employees received a higher take home pay (about 8% ) , a short term solution to his myriad of challenges.
Chart wise, we can see 2966 level has been rejected twice and the price action moving forward is likely to be in a consolidation pattern.
I will be watching the tech stocks that are currently driving the stock market. Their correction will be a catalyst for the long awaited downfall that many bears are eagerly awaiting.
Komentarz:
do you know what to do next ?
