Last week of July, first week of August. What a great time to downgrade the USA!

JPFS_OldMan_93_100823_Main-1024x538.jpg

This post was originally published on Trademakers

Something strange happened last week when the most powerful country in the world, the USA, got downgraded. Usually, this kind of news would cause a lot of commotion in the financial markets, but surprisingly, not much happened. It’s like everyone already knew it was coming or had prepared for it.

But what does a downgrade even mean? Well, it suggests that the USA is now seen as a riskier place to invest money than before. This might make people think of putting their money somewhere else that’s safer. However, despite this downgrade, the financial community didn’t seem too bothered, which is a bit puzzling.

 

People have different opinions on what’s really going on, and it’s hard to figure out the truth behind all of this. Sometimes, it feels like there are hidden games being played that we can’t see.

 

Some experts use technical indicators to explain market movements, but those explanations usually come after the events have happened. So, it’s hard to trust them completely. If they knew what was going to happen, why didn’t they tell us beforehand?

 

Recently, the stock market has been doing well, surprising some of us who expected it to go down. There has been some conspiracy theories being floated about big companies like Black Rock, Vanguard, and State Street manipulating the market trying to pump it, before dumping a chunk of their exposure or poor Joe Public. While it’s not easy to swallow such claims, it’s hard to fully trust these most of these powerful players.

 

There are also rumours that some countries, like the BRICS nations, are reducing their investments in the US and buying more gold to put them in a better position when the BRICS reserve currency is launched, or CBDC are introduced. The suggestion is that a reduction in exposure to the USA by BRICS nations could have caused the market to over shoot earlier this year, and the recent upswing might just be a temporary rebound. Moreover, if the markets do start heading south, these sellers will not be as eager to re-enter the markets as they have in the past, because a weakened or weakening America will suit their joint agenda.

 

I am not sure how much credence can be given to such opinion, but I find it difficult to discount any stories right now, because globally there are so many balls in the air, who knows whats going happen.

 

Whatever the situation is, there’s something strange going on, and it’s tough to find clear explanations that we can trust. It’s not just the stock market that’s concerning; there are also worries about the Euro getting stronger compared to the US dollar. People who don’t like the dollar might buy Euros, but I have questions about the Euro’s attractiveness when Europe has its own economic problems and the war in Ukraine is a much bigger problem for Europe than it is for the US.

In addition to this, unlike the US, Europe can’t rely on its own energy sources for now, making it harder to control the inflation problem.

 

All these uncertainties make it challenging to figure out what’s going to happen next. Politics will likely continue to play a big role in shaping the markets over the coming months/years.

 

To conclude. It’s probably best to stay cautious for now, short term trading, will offer a multitude of opportunities, and if you get on the right side, the returns could prove very lucrative. But running losses, in the hope that you might be right in the long run, is seriously unadvisable, and will remain the situation until the picture becomes much clearer.

The post Last week of July, first week of August. What a great time to downgrade the USA! first appeared on JP Fund Services.

The post Last week of July, first week of August. What a great time to downgrade the USA! appeared first on JP Fund Services.

Connect with SGT Markets

Follow us for the latest news & insights

Related Articles

JPFS_OldMan_98_210923_Main-1024x538.jpg

Back in the Driving Seat

JPFS_OldMan_97_140923_Main-1024x538.jpg

Financial Follies: Navigating the Rollercoaster of Optimism in the World of Finance

JPFS_OldMan_96_040923_Main-1024x538.jpg

Gamble on the Unexpected

JPFS_OldMan_95_290823_Main-1024x538.jpg

Summer has come to an end

JPFS_OldMan_94_160823_Main-1024x538.jpg

A Month for Reminiscing

JPFS_OldMan_92_280723_Main-1024x538.jpg

Markets and Madness: Getting back onto the Saddle

JPFS_OldMan_91_240723_Main-1024x538.jpg

Unleashing Prosperity: Embracing Innovation Over ESG

JPFS_OldMan_90_200723_Main-1024x538.jpg

The Menace of Political Propaganda: Undermining Investment Decisions in a World of Biased Information

JPFS_OldMan_89_130723_Main-1024x538.jpg

The old man got screwed last week, thank god!

JPFS_OldMan_88_290623_Main-1024x538.jpg

Is Artificial Intelligence Biased?

JPFS_OldMan_87_150623_Main-1024x538.jpg

Oh, the woes of finding something to preach about!

JPFS_OldMan_86_080623_Main-1024x538.jpg

Can we fix it? No, it’s completely FUBAR!