2022-02-24

Financial Media Logic: Russian Expansion is Bullish

Financial media: Stocks rallied strongly today on the Russian invasion of Ukraine. Investors did as they do with most takeover deals, selling Russia. The Russian market fell as much as 27 percent adjusted for currency losses before rallying back as investors began pricing in the possible synergies. With greater control over gas pipelines, Russia can cut Ukraine out out of payments. Russia's emergence as a more powerful energy power is bullish for U.S. markets because the Europeans will have to choose between more expensive American energy and U.S. military protection or cheaper energy and fend for themselves versus Russia.

U.S. markets surged as rate hike expectations plunged. The Fed doesn't have to hike rates now because soaring commodity prices will help cool inflatin by causing a recession, which is bullish because the Federal Reserve will have to restart QE. Everything is awesome. There has never been a better time to buy stocks!

1 comment:

  1. It is almost like analysis, technical or fundamental, is pointless with a Fed backstop. Just BTFD.

    ReplyDelete