What drives FreshForex clients' profits?Specialists at Goldman Sachs Group have revised their year-end forecast for the S&P 500 index (#SP500) upward to 5,600 points. This adjustment is based on the assumption that negative earnings will be below average and that the price-to-earnings ratio is now considered fair.
Yesterday, the S&P 500 reached a new all-time high of 5,488 points! The index has already grown by 15.8% since the beginning of the year, and the upward trend is expected to continue.
We previously discussed the rise of the S&P 500 in April. Our traders closely monitor the market and engage in active trading, so this new surge was not a surprise to them.
The growth of leading American companies strengthens the resilience of the U.S. economy
The stock price of Applied Materials (#AppliedMat) has increased by 56% since the beginning of the year. Applied Materials is an American corporation that provides equipment, services, and software for the production of semiconductor chips used in electronics, flat panel displays, smartphones, televisions, and solar products. The rising demand for electronic chips fuels investor interest in this company.
Motorola Solutions (#Motorola), the successor of one of the oldest U.S. corporations, has transformed into a leading manufacturer of specialized communication devices and holds a monopoly in certain niches. The company's stock has grown by 22.6% since the start of the year. Motorola Solutions focuses on the highly profitable public sector procurement, leading to steady revenue growth for MSI.
Procter & Gamble (#PG) is a global leader in the consumer goods market, well-established in the U.S. and abroad. The stock of this defensive goods group (covering beauty and grooming, healthcare, fabric and home care, and baby, feminine, and family care products) has been growing steadily and reliably. Over the year, their value has increased by 15.6%.
Start your journey in the world of financial investments with advanced trading platforms, comfortable conditions, and attractive bonuses! Trade with FreshForex!
Economy
FED hawkish with encouraging inflation data. ...are we at a pantomime of a creaking economic system?
bond futures are currently pricing in a cut of just over 25 basis points in fed funds between now and the end of the year.
While the Fed bides time on a possible interest rate cut, inflation data is encouraging. Core goods (excluding food and energy), the category that drove the inflation spike in 2021 and 2022, registered its biggest deflation since 20 years. Next cut in September? Let me know your opinion with a comment. Thank you
The Printing Company- how it works :
- Imagine you can create apples, and that you are the only one in the world able to do that.
- So if you create 100 apples, you will make them more rare and unique, so maybe you can sell them for 10$ each one.
- So now imagine you create 10,000,000,000 apples, you will have more apples than peoples need to eat, so you will have to sell your apples 0.0001$
- Anyway you don't really care about your apples price goes down because, you can create how many apples as you want, and the world population is growing.
- This is exactly the same for the US Dollar :
-- Less they print paper, less life is expensive, because we get some kind of USD rarefaction.
-- More they print papers more the dollars flood the world, it makes it weak, then you need more papers to buy your home, a new car or food.
-- Flooding the world with USD make everyone dependent on USD.
- So in graph you can see how many dollars they created post crises 2007 and for Pandemic Covid in 2020.
- So what is the situation right now :
-- Basically they stopped to print ( that's the main reason DXY Pushed up. "Dollar rarefaction" ) and world economy crashed ( Forex, Stocks , Cryptos ) .
-- In time they will have no choice to print again because their system is based on a greedy model.
- What you see is the just top of the iceberg, the Fed is a mosquito if you compare it to the BIS ( Bank for International Settlements).
- Actually controlling the flux of the creation of the dollar is just controlling the world system, it's a kind of tax form that you don't see, but you pay it much more than you think with inflation.
- USD paper money system will end sooner or later for a new monetary model called CDBC.
- it will be worst than you think as they will control everyone having a phone on their hand.
- The Only way to to counter them is to buy Bitcoin because of his real disinflationary mechanic.
- There's no other way to counter the system right now.
Happy Tr4Ding !
Fed Balance Sheet Up, Fed Funds Down, Powell to be Replacedcorrelations drawn using ancient chinese calendar methods
takeaway predictions:
federal reserve balance sheet to increase, fed funds rate to decrease, and fed chair powell to be replaced, all starting before the end of feb 2025
supporting data and patterns:
every fed reserve chair has started AND ended their term in either an ally year, a secret friend year (powell), or within 2 weeks of a ally year (yellen)
federal reserve balance sheet has gone up during all ally years since the record began in 2003 (orange line)
the fed funds rate (gray line) is always highly volatile during a chairman's oppositional year
federal reserve balance sheet remains neutral to down in oppositional years
there is not a direct correlation between a falling funds rate and the calendar method, but there is a strong correlation between an increasing balance sheet and a lowering of the fed funds rate. though the correlation between the falling funds rate and the calendar method is secondary, it still may be useful
Lets Make This A Time Capsule of SortsThis is shaping up to be the biggest distrust in long term lending in the United States in history.
As we all know the yield curve is highly inverted and its always a great indicator that short term lending is encouraged more then long. Cant wait to see the short term bag holders that did the minimum down payment HAHAHHAA
UNEMPLOYMENT % correlation with bull/bear marketsI saw a Alessio video some years ago about this correlation :
low and falling unemployment rates as an indicator of incoming crash.
Now unemployment rates are climbing from historic lows, as this is bad for the unemployed individual, it is an indicator of better times coming for soc eco
Euro Area Interest Rate Reduction a signal? Euro Area Interest Rate
◻️Reduced from 4.5% to 4.25% as expected
◻️We can acknowledge the pattern & recognize its significance without jumping to any immediate conclusions
◻️Chart will need to be combined with others to make assertions, such as the 10Y/2Y Yield Spread
U.S. 10Y/2Y Yield Spread with U.S. Unemployment rate
The amount of months that have passed prior to recession initiation after the yield curve makes its first turn back up towards 0% level
◻️ Historical Average timeframe is April 2024
◻️ Historical Maximum timeframe would be Jan 2025
No guarantee that history will repeat. Again, just a chart and some data that is worth keeping an eye on. Some people state the bond market is now broken and manipulated, we should know within 12 - 18 months, or sooner.
PUKA
Brutal Truth: War is Good for Biz across the M.I.C.Reflecting on war through industrial eyes. Ukraine's never ending conflict has been good for business across the Military Industrial Compex, across the globe. The threat of an expansionist China has led to wholesale changes in the historically sidelined Japanese military base www.perplexity.ai and business is booming from Mitsubishi Industrial to Rolls Royce to GE Aerospace down the line to various ETF's shown here. Since Jan 2022, pre-Ukraine 2.0 war, you can see the outperformance of these stocks vs. the broadest Wilshire 5000 price index. Expect more. And that includes the laggard that most people don't realize is 50% government/military----- Boeing!
Macroeconomic Update (Income, expense, consumer credit)Real income is experiencing a steeper rate of change than real disposable income. This coupled with increased productivity and a declining quit rate is disinflationary, but frustrating for workers. This tends to translate to pessimistic economic outlook.
Spending is slightly up to relatively flat while implied savings is decreasing. Don’t be surprised if we see media call this out as alarming. However, this is something that we see in the middle of economic cycles, not at the end.
Sharply increasing savings and sharply decreasing spending are traits of downturns, while depleting savings and continued spending favors market continuation.
Credit card delinquencies get a lot of press. However, credit card delinquencies pulling away from delinquencies in secure loans is also something that we see in the middle of an economic cycle.
Additionally, the relationship between the rate of change for real income, consumer credit, and card delinquencies is similar to the middle of a cycle. After downturns incomes begin to recover, and the consumer borrowing closely follows. The rates of change for each increase and then normalize. Consumers begin to realize a flattening rate of change for income, and then we see credit card delinquencies increase and level off.
US500 trading plan What makes you think it's gonna sell were it is?I don't have any reason to sell us500 but I have 100 reasons to buy this n hold until atleast 60k I will never sell stock markets during this coming they might climb 140% something that you never seen before don't play games of selling uptrend markets use pull backs as opportunities to get into position not overthinking,understand that srs pull backs of stocks there is something going on,either invasion or srs deases don't just dream of selling them alot of companies are just doing find n recovering from Russia invasion n covid trauma,understand what is moving n why.