On August 14 local time, affected by the mixed economic data of the United States and the wait-and-see sentiment on the new round of US economic stimulus plan, the trend of the three major US stock indexes fluctuated. Although the S & P 500 tried to break through the record high set in February this week, none of them succeeded. Analysts see this as a sign that the market is clearly tired.
in addition, the “Buffett index” has risen to a very dangerous range. Soros, a financial giant, said in a recent interview with foreign media that he would no longer participate in the stock market that is already full of bubbles.
on August 14 local time, the trend of the three major US stock indexes fluctuated. The Dow Jones industrial average was up 0.12% to 27931.02, the Nasdaq was down 0.21% to 11019.3, and the S & P 500 was down 0.02% to 3372.85, according to wind data.
it is worth noting that the S & P 500 index rose to 3387.89 on August 12, which is less than six points short of the historical intraday high of 3393.52 set on February 19 this year. In the view of Wall Street analysts, the volatility trend in the following two days is the performance of obvious market fatigue.
on August 14, local time, the economic data released by the United States was mixed. Among them, U.S. retail sales increased by 1.2% in July, lower than previously expected; however, automobile retail sales increased by 1.9%, higher than the 1.2% previously expected. In addition, the new round of economic stimulus plan in the United States is almost deadlocked. Experts believe that, given the current impasse, the possibility of consumers getting any additional financial support in August is very small, and the economic outlook in September will be highly dependent on the new fiscal policy.
recently, the price of gold and silver, which has attracted much attention from the market, has been adjusted. COMEX silver fell 4.23% and Comex gold fell 0.85% as of August 14 local time, according to wind data.
the US dollar index continued to decline after a small rebound. According to wind data, the dollar index fell 0.16% to 93.09620 at the end of New York, down 0.34% this week for eight consecutive weeks.
according to the second quarter 13F report submitted by Berkshire Hathaway of Warren Buffett to the US Securities and Exchange Commission (SEC) on August 14, local time, Berkshire Hathaway established a position in Barrick gold in the second quarter, bought 20.9 million shares, with a market value of 563 million US dollars; reduced its holdings of JP Morgan Chase, Wells Fargo, MasterCard, visa, PNC finance, M & amp; D; T Bank, Bank of New York Mellon; increased holdings of Kroger and Suncor Energy; cleared positions of Goldman Sachs, Delta Airlines, Southwest Airlines, United Airlines, American Airlines, Occidental oil, restaurant brands; apple, Bank of America, Coca Cola, American Express, kraft Heinz remained unchanged.
after hours share price of Barrick gold rose sharply, up 7.56% as of 7:20 Beijing time on the 15th. According to Tianyan data, Barrick Gold Corporation of Canada is one of the largest gold producers in the world, mainly engaged in the exploration, development, production and sales of gold in various regions of the world.
it is worth mentioning that Warren Buffet, the God of stocks, has not been optimistic about gold investment more than once before. In a letter to shareholders in 2012, Mr. Buffett called on investors to avoid gold, on the ground that gold is of limited use and does not create new wealth as farms and enterprises do.
looking forward to the future market of US stocks, analysts believe that the performance of the US stock market has seriously deviated from the basic situation of the US economy, and there has been a sell signal.
Brian price, head of investment at the federal financial network, said, “the U.S. stock market is far from the March 23 low, and there is still a lot of uncertainty in the overall economy. We have seen novel coronavirus pneumonia in the United States increasing over the past month or so, and I think the market will be stagnant here for some time.
Frank cappelleri, managing director of insignet, said: “given that the S & P 500 index, despite several attempts this week, has failed to break through the February 2020 high, many observers see this as a clear sign of fatigue.”
Capelli pointed out that three Demark indicators (indicators used by technical analysts to measure market momentum) have shown sell signals in the past 10 days.
he said: “while these signals do not always point to a bottoming out or a sharp fall in the market, the S & P 500 has finally fallen back to where they were originally indicated over the past three years.”
Soros, a financial giant, said in a recent interview with foreign media that he would no longer participate in the stock market that is already full of bubbles. Soros said that the US stock market has fallen into a bubble fuelled by the Fed’s liquidity, which is something that needs to be avoided now.
another evidence of the bubble in the US stock market is that the “Buffett index” has risen to a very dangerous level. The ratio of U.S. stock market value to U.S. GDP is often referred to as the “Buffett index.”. Analysts say Mr. Buffett believes that if the ratio between the two is in the range of 70% to 80%, there will be a good return on buying stocks. But if you buy stocks when the proportion is high, you are playing with fire. On July 30, after the US released its second quarter GDP data, the index soared to a record 170%.