As concerns about the global economic recovery resurfaced, the US stock market bottomed out on Thursday. A determining factor in the Dow Jones
index falling by more than 300 points may be Japan’s announcement that it will ban spectators from the Tokyo Olympics in the event that the Covid19 case returns. 4,444 market analysts, including CNBC’s Jim Cramer, are divided on the market’s next move.
Here’s what the three of them said Thursday: Link 
Cramer, the host of CNBC’s “Mad Money,” expressed concern about the spread of the delta variant, which is reflected in the main strain of the US coronavirus:
“Dang.” The government said there was no public, and the market was hit by an incredible hit, this is a delta for us. Because people recognize that this is coming… we have an entire state that is anti-vaccine.” Gabriela Santos, global market strategist at Link 
JP Morgan Asset Management expects the market to find a foundation in the medium term:
“I think we have some assets There are some unique dynamics, and even if there is a broader macro story, you don’t know it’s really about variants or locks. It’s more about what the economy and benefits of normalization look like, and whether we are paying the right price for it. I think, especially in terms of Treasury bond yields, I will put it in the first group. This is a very distorted market. We are in a certain period when the Fed has purchased 100% of the net issuance of US Treasury bonds. This is something that we haven’t even seen during the [quantitative easing] of the last ten years. It is this environment that surprised investors by the initial drop in yields and is now struggling to cover short positions. … I think the market trajectory will be greater in the next 6, 12 and 18 months. This is a slow sharpening. What boosts it is the upward revision of earnings expectations. Even with the normalization of the economy, we still hope that this situation will continue. It’s just that its performance can’t keep up with the revenue, because it will shrink many times. “ Link 
Allianz chief economic adviser and president of Gramercy Funds Mohamed ElErian found it difficult to link the day’s trend with the fundamental catalyst: Link 
“This is technical, and it is too early to extrapolate too much. So this is mainly technical rather than basic. But I won’t say,’That’s it. This is the end of the exciting story. This is the end of the liquidity wave, and it is not over yet. There is no doubt that growth indicators outside the United States and China have weakened. Undoubtedly, the unexpected index turned negative, but there is no reason to justify the range of changes we experienced, let alone the level. Is it politics? Well, it may be [European Central Bank], but it is small, and it is certainly not inflation. In any case, inflation is moving in the opposite direction. Therefore, it is difficult for me to explain this movement in terms of fundamentals. “ Link 
Disclaimer

Link 

Link 

Link  Link 

 

Leave a Reply

Your email address will not be published. Required fields are marked *