Greenbull Sarl
Hello Greenbull Investors ❤️ Market Sentiment Overview - Risk-Off There are 2 big issues that are effecting the stock prices right now and they are both dependant on one another so let's explore what they are and how they influence our investment strategy... #1 Omicron Virus This has caused a panic in the market with investors protecting themselves against the same stocks dropping we saw during the 2020 'covid crash'. Cruise stocks dropped considerably and the travel industry has been disrupted as more lockdowns mean less travel and business for these companies. It's worth noting this drop won't be as significant as 2020 due to medical companies saying they can easily overcome/control this strain with current vaccines. #2 US Fed The Fed earlier this month began with their tapering program which means the Fed will slow down on their buying of $120 Billion assets/month. The chair of the Fed Jerome Powell seems to have stopped the 'transitory' narrative of inflation meaning that we will have inflation here for longer and the products that companies make will all become more expensive. The reason that tapering is important is because when the worlds largest economy needs to be supported by stimulus it shows that there is no faith in the economy, fast forward to now and the economy is looking so strong that stimulus is no longer needed so stocks begin to pump! The result of all of this is a panic sale and mass uncertainty in how far the sell off will go which means people have a very 'risk-off' sentiment meaning anything that is a 'high risk, high return' asset like tech stocks and cryptos have experienced a dip. We have moved to a very large cash position so we can take advantage of any opportunities we see, right now if the markets continue to drop we will be pretty much en effected as we hold so much cash. The next steps for us are to look into 'cyclical stocks' and any undervalued assets that have shown a good indication of a trend reversal - we just have to wait to see how the markets react. Finally, please remember that we have identified key levels where we will be buying stocks and these could be massively profitable positions so make sure to remain invested in the portfolio so you too can join these trades 🥇 Let us know if you have any questions ❤️ From, @GreenbullInvest Team