Thursday, January 26, 2017

US stock market: Why the Dow Jones jumped for the first time more than 20,000 points – daily mirror

needed Just 46 days, the Dow Jones for 1000 points. On Wednesday, the leading U.S. Index, the cracked now, for the opening of the symbolically important mark of 20,000 points. 22. November, he had conquered the brand of 19 000 points. The repeatedly declared dead Trump rally could go to the next level. “The Trump rally is intact and back for more,” says Neil Wilson, market analyst at ETX Capital.

Since the election on may 8. November had pushed investors all of the major US indices in a massive rally to the top. The Dow Jones came after several failed attempts, up to a few Tenths of a percentage point to the mark of 20,000 points, had not managed to leave behind. Many banks and analysts feared that the rates might again break as soon as the new US government has started to work.

happened But it is the opposite. Donald Trump had made it to the start of the week with his announcements seriously and the exit from the TRANS-Pacific free trade agreement TPP explains, which wanted to facilitate the trade relations between the United States, Japan, new Zealand, Australia, Canada and some Asia-Pacific countries.

On Tuesday, he had then followed: Two controversial Oil Pipeline projects, which had stopped its predecessor, Barack Obama, should be resumed. Papers of the oil sector, such as Chevron or ConocoPhillips, increased markedly. Especially the decisions Trumps, the advance pipeline projects, and Meeting with the tips of the U.S. auto industry to get investors well, said Wilson. Previously, many investors had doubted whether Trump would implement previous announcements at all, the Analyst.

Symbolic boundary that does not overstate the case

the shares were Supported by purchases of a good quarter, and the hope of tax cuts, deregulation of the banks and more investment in the reform vulnerable U.S. infrastructure. On the order lists, especially Boeing, the construction machinery giant Caterpillar, the technology company 3M and the Computer were next to the banks on Thursday-giant, IBM.

should benefit While Caterpillar, according to the investors through investments in infrastructure, an enthusiastic Boeing with good quarterly numbers. The aircraft manufacturer earned noticeably more and wants to deliver in the current year, more transport aircraft as of 2016. The papers to be placed temporarily to 2.3 percent. Shares of aluminum producer Alcoa gained 1.8 percent. The group is benefiting from rising aluminum prices, and generated after the split-up higher sales than expected.

Of the 79 companies that have been granted an insight into their balance sheets at year-end, exceeded, according to Reuters calculations, 70 percent of analysts ‘ expectations. Thus, the US could provide economy in the past quarter for the second Time in a row, increasing profits, after the profits had fallen in the five previous quarters.

Video Trumps TPP brings defective exit China into the game.

skeptics, the conquest of the Dow milestone means only that the prices of the 30 largest listed US companies had increased a little. One should not overrate the symbolic boundaries. Also, some large banks had the last word of caution. As Goldman Sachs chief economist David cost, had warned that the investors overestimated the reductions of Trump announced tax. The market could fall after a brief rise significantly.

optimists, in turn, pointed out that the mark of 20,000 points was psychological is very important and those in the boat could lure, which had previously been skeptical, and now the race courses to watch. In addition, the boost to the stock markets will accelerate the Rotation of many investors from bonds into equities, believes Wilson.

other indices again take a ride on

in addition to the Dow Jones, the other indices were up, however, after a few days of relapse significantly. The Russell 2000, which tracks 2000 smaller company with more intra-American focus, on Wednesday again and since the election of Trump so far, 15 per cent. The S & P 500, which reflects the development of the 500 largest U.S. companies, and the Tech Index, Nasdaq. On Tuesday, the two indices had already climbed to new record levels, without, however, icon conquer and brands. The uncertainty about the economy seemed to be politics Trumps gone, said market experts.

in Spite of the conquest of the mark of 20,000 points, it still remains unclear whether the boom is sustainable. The Dow Jones goes in the spring in the ninth year of rising prices. Had begun the rally in the spring of 2009, when the Dow put on after the financial crisis in the Low of 6547 points. Since then, the U.S. leading index has more than tripled. The longest bull market in US history, lasted for a good ten years.

investors who want to put on US stock, in Germany, a broad range of actively managed Fund and a passive Fund (ETF). In the past, the papers of Anglo-American Fund management companies had mostly significantly better than the papers of German Fund companies. Don’t need to know German investors, however, that you enter into with the investment in the US market, only price risk but also a currency risk. Of dollars, can eat up the profits.

In the past year, the risk turned to Chance, because of the rising Dollar would have increased the 24prozentigen gain with the Dow Jones by about a percent. In the past five years because of the weakness of the Euro of almost 18 percent. Most analysts expect a more solid Dollar, because in the USA the interest rates were to rise significantly, bringing the Dollar to yield higher returns than other currencies and therefore is in demand.

Also for the US economy, many market observers are optimistic that Trump got the US in a Phase of growth attractive taken. Unemployment is at a record low, consumer confidence reached the highest value since 2001. The growth could go this year, quite in the direction of three percent, it says. And also, the International monetary Fund (IMF) has raised its growth forecast for the United States.

An article about how investors due to Rebalancing of the portfolio before the crash to protect can be found here.


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