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This Week Highlight - What To Lookout For in Y2022?
After a rough and volatile year in 2021, we have finally arrived at the January month of Y2022. With the crunching effect of Coronavirus and turning into Omicron now, the world is still wondering how many more folds of mutation will surface before the human reaches the end of this dark tunnel.
In Y2022, we foresee there could be more volatility in market and the global economics will face more shortage in liquidity after the pandemic stimuli end in April for both U.S. and Europe. Literally, here are few things we need to look out for this year in order to protect your investment monies safely:
1) Tapering Exercise - The U.S. FED policymakers have made known openly many times in Q4 2021 on their intention to shave the balance sheet of USD8.3 Trillion from Government's budget deficit. This will be done in Y2022 but yet to mention the dates. In our opinion, there will be most probably 2 rate hikes this year in order to trigger a tapering program. Though some traders expect 3 rate hikes, we think one in the first semester and the other in second semester will be "disastrous" enough to rock the global markets!
Hence, pay attention to the rate tightening most likely in April/May and Oct /November seasons. These actions will follow the corporate earnings of huge companies in U.S. and European markets.
2) Weakening Dollar - While the U.S. Government is planning to repatriate the fund to U.S. soil through the tapering exercises, we all know that the U.S. is facing a challenge of fund shortage in paying Government bills. On one hand, they want to increase rates to control inflation and money back to the U.S. banks, the other side will continue to print Dollar for supporting sovereign policies like infrastructure building, financial bonus to covid families, tax incentives etc.
When Dollar tanks, lookout for Gold prices to surge and this will influence Silver and commercial metals. Construction companies will need to adjust their risk margins for undertaking new projects. Farmgate prices for food will follow suit and cause stagflation when salaries cannot keep the pace of rapid rising prices.
3) OPEC+ countries have been discussing to increase global supplies by 400,000 barrels on daily basis from February onwards. Even this plan might commence, it will have little downside effect on Crude due to shrinking shipment on global basis and shortage of energies from post effect of pandemic crisis. In line with weaker Dollar and the flamboyant nature of OPEC leaders, they may reverse the policy in mid-year and continue to push the Crude prices to above USD90 /barrel.
In summary, this year will be subject to some major market factors stated above and that could trigger a series of risk factors if Omicron mutates into another new wave. As long as the global travelling is still on limitation, every country in the world will be facing shrinking in economic growth and reducing GDP.
Stay alert to watch the market. There could be some inverse opportunities for you soon!
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CALGARY, AB , Nov. 11, 2021 /PRNewswire/ - Sundial Growers (Nasdaq: SNDL) ("Sundial" or the "Company") announced today that that its Board of Directors (the "Board") has approved a new share repurchase program (the "Share Repurchase Program") which authorizes the Company to repurchase up to C$100 million (the "Share Repurchase Amount") of its outstanding common shares ("shares") from time to time at prevailing market prices, enabling Sundial to opportunistically return value to shareholders. Pursuant to the Share Repurchase Program, Sundial may purchase shares from time to time at the discretion of management through open market purchases, privately negotiated transactions, block trades, derivatives, accelerated or other structured share repurchase programs, or other means. The manner, timing, pricing and amount of any transactions will be subject to the discretion of Sundial and may be based upon market conditions,
Lucid Group ( LCID +12.6% ) continues to rise as positive reviews on its recently delivered electric vehicles arrive. The company's luxury electric sedans start at $77,400 and provide drivers with an industry high official EPA range of 520 miles, 100 miles better than the second place Tesla Model S. Given the high price tag, the company poses the biggest threat to the Model S, which is Tesla's (NASDAQ: TSLA ) most expensive sedan with a starting price of $94,990. Lucid is planning to release its Project Gravity SUV in 2023 which will compete with Tesla's Model X. The threat may not affect Tesla too much, though, if Lucid decides to stay at higher price points. Tesla makes the majority of its revenue from its cheaper Model 3 and Y SUVs. In Q3, just 3.8% of Tesla's unit deliveries were from the Model X or S. Lucid is following Tesla's model of displaying vehicles in malls and will open its newest retail location at Tysons Corner Center in the Washington, DC
It’s late night. But I have to share another exciting stock. SNDL from the signal at hourly chart is breakup 1. From weekly, just start. Here, we looking for breakup 1.3 first. Then, next breaking point is 1.8. After can break this tow level resistant, we will hold until it flight to 4. Good luck.