Central banks!

Dear Reader,

The markets are still adapting to the decision by the European Central Bank. However, the US market yesterday fell, despite the stimulus from ECB. This could serve as a warning sign. I personally think the rally will continue for the time being, but correction seems on the cards. It will be interesting what the Bank of Japan decides in the future. The Federal Reserve will surely be happy if the ECB and the BoJ embark on stimulus, while the Fed exits its own. The mediocre unemployment numbers from today could postpone the raising of the Federal Funds Rate.

This could dampen the pending US treasury correction and could lessen a possible decline of the US stock market. If the correction comes, most affected should be the technology stocks, especially the social media and biotech.


Disclaimer: This article is provided solely for informational purposes, and does not constitute an offer or solicitation to buy or sell any securities. The opinions expressed in the blogpost are the author's and they in no way express the opinion or official position of Bulgarian National Bank!

Conflicts of interest: I may possess some of the securities mentioned in the blogpost!