A closer look at the stock charts of businesses in the United States reveals a surprising level of comfort that investors have. Despite the economic volatility of 2020, from the rebound of the US markets to the unique risks of digital currencies, investors appear to have confidence in the US economy, and the stock market charts suggest a feel-good recovery.
In a recent video interview with financial giants, investing legend Jim Rogers, CEO of Russo Capital Management, explained the necessary conditions for a market rebirth, and some trends behind the prominent stock market charts of the day.
First, Rogers emphasizes the need for a consistent trend of positive news. According to Rogers, recovery depends heavily on businesses and investors believing that businesses will do well, and that their investment decisions will pay off. To prove his point, Rogers notes the Federal Reserve’s steady policy of quantitative easing, which has ensured that borrowers can access loans and that all levels of business have financial stability.
In addition to consistent positive news, Rogers stipulates that there must be an injection of liquidity into the system. Rogers points out that the US government has ramped up its spending and borrowing to give the US economy a shot in the arm. Without a major injection of liquidity, Rogers says, investors wouldn’t have the confidence to buy and sell stocks.
According to Rogers, the US government’s latest round of stimulus packages and the injection of $1.9 trillion of liquidity have been a key factor in driving the US recovery. He also points to an optimism in the market, where investors see the stock charts and believe that the markets will improve over time. This confidence partially stems from the relaxing of global tariffs, which has allowed exchange rates to become more stable, and to foreign businesses once again feeling confident to invest in the US economy.
With each of these indicators in place, Rogers suggests that investors can look to the stock charts to gain an understanding of the level of comfort in the markets. Rogers particularly notes the impressive comeback of the S&P 500 since the COVID-19 pandemic hit, as well as the double-digit gains in tech-related stocks. This suggests that the majority of investors have faith in the US economy and are willing to take on higher risks with their investments.
Ultimately, Rogers believes that the production of quality economic content, such as the trend-setting stock charts, should encourage investors to view the US economy with greater optimism, and to draw soldierly conclusion from the difficult times of 2020.
Unlock the Secrets of the Stock Charts: A Must-Watch Video Interview
previous post