What do the markets want to tell us?

Petrol proved "slick" for the stock

US President Donald Trump wants shares to rise as oil prices fall. Obviously, both things can not happen at the same time.

We are on the way to ending another week of stock and index downturns, bringing the S & P500 to its lowest point this month, rising previously from the "bloodshed" in October, turning this year's profit to zero. Technological stocks are the worst hit of the "carnage," but according to some investors, energy stocks have taken the bigger blow than any other sector.

And it is not surprising given WTI and BRENT's depreciation this week after the big mix of OPEC and Saudi Arabia's cut-offs, Libya's increase, Trump's tweets and his statement that he remains a faithful ally of Saudi Arabia the raging scandal of the murder of journalist Khashoggi. All of this eventually led to a sharp fall in oil prices and the overall downward pressure on the energy sector. Along with the turmoil in the precious metals market, driven solely by copper prices, we have a signal that the global economy is weakening. The fall in oil prices is also directly linked to the rise in energy efficiency, which is good news for those who are struggling with global warming. And the memories of the massive sell-offs in the energy sector a few years ago again seem to be weighing on investors. Add the status of technological shares, copper and worsening credit markets, and the bigger picture becomes a bit more unpleasant.

Bitcoin may still fall

Surely we could not say that Bitcoin was a place of shelter for the sale of the shares. The fact is that with the fall of 80% of its peak to nearly $ 20,000, the price level is where last year Jamie Dimon called it a deceptive scheme. The fall in Bitcoin's value is far from over. If we look at the Bitcoin Bitcoin-specific measurement value of the network power ratio to the transaction rate, which is something like a price / value for Bitcoin, we can see that BTC is still quite expensive.

The value of GDP is not a sufficient indicator

As an essential indicator, GDP is in focus for all economists, investors and traders. But GDP tells only part of the story. It needs a tool that reflects national economic growth among economic groups on a regular basis. This will better tell us how much the economy is going in the right direction and how far this affects Americans as economic subjects. However, the effect of GDP growth has not been so favorable since recently.

And who will take the laurels for the economic recovery? Trump or Obama? Rather not. The true characters are Ben Bernanke, Janet Yellen and Jay Powell, for being faithful to the Quantitative Ease and Fiscal Incentives, and withstood the enormous influx of criticism and attacks, especially now due to the new move the Fed has taken.

Source: Bloomberg Finance L.P.

Graphs: Used with permission of Bloomberg Finance L.P.

Photo: Unsplash

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