Gold Investment Is the Ultimate Guide for Tech Investors In 500 Words
by Jan Skoyles, Editor Mark O'Byrne
Tech is the umbrella word for all things fashionable to invest in right now. Take the recent flotation of Snap Inc. (parent company of teen and narcissists’ favourite app SnapChat), everyone wanted in on the $20 billion flotation.
European and Asian stocks slumped on Thursday following the worst one-day drop in US stocks in 8 months, while S&P futures tumbled to session lows, down 0.3% to 2,350 after initially posting a modest rebound, following a new Reuters report alleging that Trump campaign members communication with Russians on at least 18 occasions, and which prompted today's risk off mood sending the USDJPY crashing by 100 pips from overnight highs of 111.40.
Yesterday's market dump, the biggest one-day selloff in eight months as concerns about the stability of the Trump administration and concerns about a potential Trump impeachment finally slammed risk assets hard, is also a one-off event. At least that's the opinion of Bloomberg commentator and former trader, Mark Cudmore, who overnight wrote that "without some major new developments, it’s unlikely to be the start of a severe correction. In fact, the worst is probably over already for U.S. equities, for Treasury yields and for the dollar."
Back in February we reported that as America's deflationary wave spread through the grocery store supply chain, the scramble for America's bottom dollar was on, and it prompted America's largest low-cost retailer Wal-Mart to not only cut prices, but to squeeze suppliers in a stealthy war for market share and maximizing profits, a scramble for market share which is oddly reminiscent of the OPEC 2014 price fiasco and is certain to unleash a deflationary shock across wide portions of the US economy.
Today's sudden 'Minsky Moment' in markets has pushed US equity risk perceptions to their highest relative to Europe since August 2015, back to old 'norms'.
As Bloomberg notes, U.S. politics are taking center stage as risks recede in Europe following the French presidential election. With Donald Trump facing the deepest crisis of his presidency, the CBOE Volatility Index surged on Wednesday, while Europe’s VStoxx Index rose less than 5 percent.