Store the cache and prepare for the worst: the expert is warned about a new financial crisis


By may the situation in the world economy is likely to trigger the deterioration of forecasts of profit of joint-stock companies. Photo: Association of konsaltingovykh frm

Monday, February 5, the shares of major companies fell from its recent highs of 10 percent or more.

“This is the first alarming signal for the global economy. Now everything else is good – wages and inflation are rising, incomes of businesses, and GDP of most countries well clocked up. However, the rapid growth of profitability of us government bonds (because of rising threats of inflation and expansion of the US budget deficit as a result of tax reforms) triggered the first wave of sales of shares”, – wrote in Facebook economist, managing partner of Capital Times Eric Naiman.

According to him, today and tomorrow sale of financial assets over.

“U.S. government bonds have already risen significantly on the risk aversion. A typical correction for the late phase of macroeconomic growth is 10-12% that had actually happened. However, the closure of marginal positions could trigger another wave of panic sales, which will buy professionals. Then the stock market will probably resume growth and can even refresh the historical highs or something,” – said the expert.

By may the situation in the world economy is likely to trigger the deterioration of forecasts of profit of joint-stock companies.

“Because the dynamics of stock markets to predict the situation in the economy, by November it is expected the beginning of the economic crisis in the United States. If this really happens, pretty soon will cover crisis and the global economy. Ukraine, with its huge payments of foreign debts in 2019-2020. So keep your cache and prepare for the worst,” advises Eric Naiman.

Losses in new York turned into further losses in Asian markets. On the morning of 6 February the Japanese Nikkei index lost 6.6% and the Chinese Hang Seng fell 5%, the stock index of the Shanghai stock exchange Shanghai Composite fell 2.2%.

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