Coordinated Central Bank Intervention! (15th March 2020)

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Mar 152020
 

Coordinated Intervention in Markets

This evening, Sunday 15th March 2020, five central banks across the World took coordinated action… see the BBC report below!

I’ll be setting up an interim webinar for Inner Circle members to discuss the ongoing situation, so watch out for an e-mail with registration details tomorrow morning.

Mick (Sunday 15th March 2020, 22:45 GMT)

Interest Rate : Emergency Cut (11th March 2020)

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Mar 112020
 

Bank of England Cuts Interest Rate by 0.5%

At 7am this morning, in a response to the economic impacts of the Coronavirus, the Bank of England Monetary Policy Committee (MPC) has cut interest the BoE interest rate by 0.5% (from 0.75 to 0.25%) matching the record low level that was set in August 2016 (and lasted until November 2017). Mark Carney, the outgoing BoE Governor sets out the MPC’s reasons in the BBC presentation (below)…

Mick’s Thoughts

Even before the Coronavirus came along, there were stress signs beginning to emerge in the economy and the stock market had been on a record bull run. Covid-19 has provided the ‘supply shock’ that has pricked the economic bubble – that has been continually pumped up by the endless printing of new money. IMHO, there could be a lot of shrinking to do. Using this interest rate ‘weapon’ now and no doubt, with the spending spree shortly to be announced in the budget… inflation will likely become an increasing threat. If the virus does have anything more than a short-term affect on output, contributing to loss of confidence and ultimately a (possible global) recession and an increase in unemployment, could we end up with a bad dose of ‘Stagflation’?

As ever, please do your own research (DYOR) and make up your own minds accordingly.

If you have any comments or observations, regarding the above, then please use the contact us form Here.

Mick (11th March 2020)

Will this be a ‘Black Monday’? [9th March 2020]

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Mar 092020
 

Sharp Market Falls Today (USA follows UK & Europe Down!)

With the 6-7% fall evident in the markets this morning, following the double whammy of the CoronaVirus and the possibility of an Oil Price War, you can be excused for feeling a bit like the proverbial “rabbit in the headlights”, as you freeze and then panic!

This feeling could be amplified, as Wall Street has indeed followed with a big drop (over 7%), after it opened a few minutes ago. Fear could well be amplified further, if the Americans decide to cease trading on the markets (as they did after 9/11 and more distantly back in The Great Crash 1929).

So what does all of this mean and what should we, as DIY-Investors, do?

Well, firstly… Breathe! Take time to get to grips with the reality of the situation and don’t panic, as I’ve said on more than one occasion recently.

I’ll be adding more to the DIY-Investors.com website later today but in the meantime, the inner circle members might like to take a look at the webinar recordings from last Wednesday… especially Part 2 (lessons from History).

Also, if you didn’t see the post last week, take a look at ‘Ominous Signs’ Here!

If you’d like to join our community of like-minded DIY-Investors and benefit from the accumulated knowledge of those who are actively managing their own stock market investments… join us HERE! to benefit from a 25% discount on the monthly cost of Inner Circle membership (£360 for 12 month subscription, compared to £480 if paid monthly).

As ever, please do your own research (DYOR) and make up your own minds accordingly.

If you have any comments or observations, regarding the above, then please use the contact us form Here.

Mick (14.10GMT, Monday 9th March 2020)

 Posted by at 1:57 pm

Ominous Signs (5th March 2020)?

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Mar 062020
 

All-Share Index (ASX) Graph

The trend is your friend… unless and/or until it goes against you, when it can become resistance!

The All-Share Index Graph (see below) is showing a few ominous signs, after it closed down again last night (5th March 2020). This comes against the back drop of increasing numbers of Coronavirus cases. However, as we discussed during the Inner Circle Webinar on Wednesday evening… there is more going on than first meets the eye.

ASX Graph (5th March 2020)

ASX : SharePad Intra-Day Graph (as at 08:49GMT, Friday 6th March 2020)

ASX (Fri 6th March 2020)

The third (and final) section of the webinar recording will be added to the website today, so if you’d like to join our community of like-minded DIY-Investors and benefit from the accumulated knowledge of those who are actively managing their own stock market investments… join us HERE! to benefit from a 25% discount on the monthly cost of Inner Circle membership (£360 for 12 month subscription, compared to £480 if paid monthly).

As ever, please do your own research (DYOR) and make up your own minds accordingly.

Mick (6th March 2020)

 Posted by at 9:39 am  Tagged with:

Federal Reserve Cuts Interest Rates (3rd March 2020)

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Mar 032020
 

Emergency Rate Cut, as Coronavirus Spreads

This afternoon (3rd March 2020), the US Central Bank (Federal Reserve) has announced an emergency cut of 0.5% in the interest rate. See the BBC article here!

The Chairman of the Fed (Jerome Powell) was quotes as saying that the

“US economy remained strong. However, the coronavirus poses evolving risks to economic activity.”

“In light of these risks and in support of achieving its maximum employment and price stability goals, the Federal Open Market Committee decided today to lower the target range for the federal funds rate by half a percentage point to 1% to 1.25%”.

Is this justified, or is the Coronavirus masking more sinister issues in the US (and World) Stock Markets? We’ll be discussing this tomorrow, amongst other things, during the Inner Circle Webinar.

As ever, please do your own research (DYOR) and make up your own minds accordingly.

If you have any comments or observations, regarding the above, then please use the contact us form Here.

Mick (3rd March 2020)

 Posted by at 5:11 pm