U.S. stocks punched solidly higher on Wednesday, 13th Feb 2020!
All 3 major US indices break all time high again the umpteen time.
What is happening to the stock market?!
Shouldn't the stock market be dropping amid the Corona Virus? Apparently not...
Below are the reasons why the stock market has been so CRAZILY GOOD!
1) US has been printing money through REPO every few days
REPO is an operation where the Federal Reserve buys Treasury securities and mortgage-backed securities (MBS), guaranteed by Fannie Mae and Freddie Mac, whereby the counterparties commit to buy back these securities at a fixed price on a specific date, such as the next day (overnight repo) or a longer period, such as 14 days (term repo).
In short, it means the FED is injecting money into the market every 14 days.
And Fed Chairman Jerome Powell recently says that the REPO will continue till April! Which means you might see MORE Bullishness!
Check out the recent video of Fed Chairman mentioned Repo till April:
2) US-China Trade Deals going very well even with Corona Virus
With the Corona Virus impact, President Xi Jin Ping recently says that China will persist to buy the goods that they promised in Phase 1 of the Trade Deal between US and China.
And China do not mind paying for the Billions of dollars because they are just flushed with cash.
What China wants now is hopefully to minimise the impact of Wuhan Virus on its GDP.
That means they won't probably play hard ball with US in delaying the trade deals.
Most likely in the next few months, you will probably see US and China talking about signing Trade Deal Phase 2!
This just means more Good news for the stock market!
Your Job as an investor is to Join the BIG BULL RUN!
As the saying goes, if you can't beat the market, join them!
This year with US election situated in November, US has been boosting the economy with plenty of stimulus like printing money, lowering of interest rates, bank de-regulation policies and pro-business policies.
This is the reason why many companies are showing good earnings reports.
Apple is one such companies. Its share price increase from $220 to $320 in a short span of 5 months! An incredible return of 45% in 5 months!
So if you do not wish to miss out on this Bullish Bandwagon, join our upcoming event to learn what are the stocks and sectors to look at this year.