Perfect storm

It's like a perfect storm, Europe is having a hard time with the higher interest rates. Investments are postponed, for over two years now, and the result is very low confidence in the economy by the big companies. Together with that, the inflation has dropped under 2 % now in several European countries. And the ECB has the target set at 2 %, they even like it a bit higher, but certainly not lower. And then, there is the automotive industry, they got hit pretty hard on the stock market today, after the release of lower expectations by Aston Martin, VolksWagen and Stellantis. This made the share prices of almost all automotive stocks drop 5 % or even more today. This all has to do with the unrealistic goals set by the "European Green Deal".

Put this all in the mix, and the European Central Bank is almost forced to cut interest rates in October again with at least 50 base points. Maybe, but unlikely, even more. The economy needs a push, or rather a hard kick in the butt. Especially with the recent economic stimuli by the Chinese central bank. The competition gets even harder for the European companies, especially the so plagued automotive industry, that already can't compete with the Chinese competitors.

Good for stocks, good for crypto

The expected rate cut, so shortly after the previous one, would mean very good news for the stock market in Europe and the US, but also for crypto currencies. This when the so long expected bull run is at the doorstep.
Crypto could be in for an epic cycle, as bonds will become less interesting, savings accounts won't outrun the inflation anymore, so people look for alternatives. And also investors. And those investors now have the option to invest in crypto too, which wasn't really the case in the previous bull run. An ideal mix, for an unprecented bull run... But I am not giving financial advice here, because the markets are so unpredictable, I would never bet on it. But there is a big chance, and I will settle for that!

Sincerely,

Pele23

Posted Using InLeo Alpha