Stock Market Today

Latest update: 19-01-2021 20:40

I constantly follow all the stock market news. I only post the stock market news that really sets stock markets in motion.

Janet Yellen turns left. Today Janet Yellen appeared before the US Senate. Kind of an interview for her new job as finance minister.

Of course we know Yellen as the former FED chairman. That was a more neutral role. However, she is now going to fill the minister's job as a democrat. And an American Democrat sits on the left of the center.

Today she announced many of her plans. Yellen is in favor of a large stimulus package. She indicates that she has an eye for the high American national debt.

But because of the low interest rates, there is enough room for a large stimulus package, according to Yellen. I see there yet another confirmation that interest rates will remain low for a long time to come.

Janet Yellen also indicated where that stimulus money should mainly go. “We have to help people who have been struggling for a long time”. The money therefore mainly goes to the population and people on benefits.

According to Yellen, US business taxes can be increased. But under a few conditions, such as the corona crisis, it must be over and the level of the tax must be in balance with that in other countries.

From her words we can conclude the following. Interest will remain low for a long time. She's not about that, but as a former FED chairman she knows the ins and outs of course. More money to citizens, which will increase purchasing power and inflation.

Increase in business tax in the long term. More stimulation is good for the stock markets and extra good for gold and silver because it will increase inflation.

In the long term (given the economic damage by corona only in a few years' time) higher business tax will put pressure on the stock markets.

European stock markets performed only moderately today. US stock markets are doing better with the Nasdaq pulling the cart. Just at the beginning of the earnings season, investors are taking even more positions in the tech corner. The already sky-high expectations are being raised even higher today. Hope it turns out fine…..

The gold and silver price

Janet Yellen's message of more money to citizens went well. Because this means higher inflation, which is good news for gold and silver. However, the joy could have been a bit greater.

Because that higher inflation will come and that will put gold and silver considerably higher in the coming years. Gold, silver and mining stocks are still very reluctant.

We are in a first see then believe period. Most investors do not want to buy until the increase has been going on for a while. By this, they always miss a large part of the return. But that's just the way it works.

A little more red than green for mining stocks. Turnover is low. Everyone seems to have fallen asleep.

The AEX

Little movement, but as almost the only European stock exchange closed in green. Here, too, mainly the tech stocks that kept the AEX in the green. The earnings season will only really start in the coming days. Then we get more movements.

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