Inter-market analysis, MARKET CRASH vs. CORRECTION
Market crash usually have a devastating effects on prices in commodities and energy market. As you see in the charts, we see how .com bubble, housing bubble, burst and COVID-19 pandemic affected oil price in the past.
What we see started since early February 2021 in the market has not the defined criteria of a market crash, and seems to be a correction. Although the stock market is in the red zone, we see slight changes in prices in commodities and energy market.
In conclusion, whether it is a correction or early market crash, it would be better to sit out, monitor and reevaluate the situation.
Keep in mind the future outlook is pretty much different from Feb-March 2020, when a pandemic was just started(once in a lifetime experience). IMO: soon recovery phase will start in most developed countries followed by developing countries.
The future outlook is actually bright and United States market could experience an economic boom because:
A: a year from now, most of the population will be vaccinated and ready to back to business!
B: Expansionary Monetary policy will enhance exports, stimulate the demand, and cause inflation.
*** some sector like commercial real state & fossil fuels will not fully recover because their outlook is compromised by e-commerce and clean sustainable energy companies.
What we see started since early February 2021 in the market has not the defined criteria of a market crash, and seems to be a correction. Although the stock market is in the red zone, we see slight changes in prices in commodities and energy market.
In conclusion, whether it is a correction or early market crash, it would be better to sit out, monitor and reevaluate the situation.
Keep in mind the future outlook is pretty much different from Feb-March 2020, when a pandemic was just started(once in a lifetime experience). IMO: soon recovery phase will start in most developed countries followed by developing countries.
The future outlook is actually bright and United States market could experience an economic boom because:
A: a year from now, most of the population will be vaccinated and ready to back to business!
B: Expansionary Monetary policy will enhance exports, stimulate the demand, and cause inflation.
*** some sector like commercial real state & fossil fuels will not fully recover because their outlook is compromised by e-commerce and clean sustainable energy companies.
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