Pottering About
No result yet in the market tug of war
As I started to write this month, at least one potential crisis had passed with an outcome that markets will find acceptable. The US politicians have reached an agreement (subject to Congressional approval) on funding the US public debt for a full 2 years more.
Bad news is the fact that the war in Ukraine is building up to a critical point and we cannot know what the consequences will be. Plus, a welter of news from China suggests that it has economic problems on a scale not anticipated and which the Chinese Communist Party (CCP) may have trouble managing.
The push me/pull you trading in markets that we have seen this year is further sustained by the news that recessions might be avoided in some developed markets (good) but that means interest rates will stay higher for longer (bad).
For once there is some genuinely good news about a major business, which will be owned by many funds popular with readers, doing exceptionally. This is Nvidia, the tech company set to benefit hugely from the rush to invest in AI. It is looking like another Tesla for the moment, which means it will likely end in tears, but we can hope our fund managers will ride the bandwagon and book some profits.
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