Stock Market Today
Latest update: 23-08-2019 18:45
I constantly follow all the stock market news. Only the stock market news that really sets the stock market in motion I post here.
Powell knows how to find the right tone and Trump is furious. Every investor was looking forward to the speech of FED Chairman Jerome Powell in Jackson Hole. In the past, Powell did sometimes put too much emphasis on the positive or negative side.
Today he came up with a story that is better balanced. He indicated that the targets for employment and inflation were almost achieved. But he also pointed to the uncertainties surrounding the trade war. The Fed continues to monitor this and will take action if necessary.
In addition, Powell wants to see if new instruments may be needed to respond to that trade war. In addition, the almost promise that the FED will do everything necessary to maintain current employment and economic growth.
With his speech, Powell has reassured citizens and the business community. Investors naturally see in his words that if necessary, there will be more stimulation immediately. They, too, were reassured but did not want to buy, but were first to await the next FED meeting in September.
Although Powell came empty-handed, he was able to prevent a fall. That has turned out differently in the past. The uncertainty he indicated about the trade war was enough to raise the gold and silver prices.
However, there was one person who totally disagreed with Powell. President Trump turned the whole thing upside down with a few tweets. Trump wondered who his (or did he speak on behalf of the entire US?) Greatest enemy. Powell or the Chinese president Xi. Let's hope neither of them.
Earlier today the announcement that China will levy import duties on US $ 75 billion worth of US products including cars. Again a furious reaction from Trump. He ordered American companies to leave China immediately. However, Trump cannot give such an assignment.
And then Powell does not want to immediately lower interest rates either. Powell cannot and must not decide on its own. This requires a meeting with all FED members, which is only in September. Chinese import tariffs and a FED that takes too late action.
Then Trump already sees the storm. The growth of the American economy will slow down somewhat more in the year in which he wants to be re-elected. Trump saw his re-election endangered today. With his tweets, he may have put his re-election even more at risk.
By calling the team of trade advisers together today, the conflict is only getting worse. Can be seen on American stock exchanges, which went strong in the red.
The gold and silver price
Investors in gold and silver mines were given a cake today, followed by whipped cream and finally a cherry to top it off.
First of all China that comes with trade rates. Then Powell who sees a risk in that trade war that he will have to solve with more stimulation if necessary. Then Trump who calls the FED and President Xi his enemies and instructs American companies not to do business with China anymore.
But we should not just look at today. After today's escalation, we have entered a new phase with that trade war. As of today they will play the game very hard. The measures and angry tweets will only increase in the coming months.
The more hassle, the higher the gold and silver price. I also noticed in one of Trump's tweets that he complained about the high dollar. Trump does not get his way from the FED. Then he will focus on the dollar. To lower the dollar, he does not need the FED.
His next step will therefore be to lower the dollar. That will be very good news for the gold and silver price. The gold mine and silver mines I invest in today are on average up by around 5%.
The AEX seemed to close the week fairly. Trump's tweets have made it a red day. In view of the other stock markets, the damage is considerable. It remains to be seen how American stock markets will close today.
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