ConsiderTheFollowing

Just thinking out loudly and sharing opinions.
Not a financial or an investment advice. I m only sharing my passion about finance, other opinions welcome.

[ConsiderTheFollowing @ConsiderTheFllw]

Meanwhile,in the US the confidence in the economy is so strong that the CEO of Norges Bank literally said that in many of the american CEOs he talked to he saw so much optimism that an "animal spirit" was coming back.Literal words:
https://t.co/SxsK24D9yu

[ConsiderTheFollowing @ConsiderTheFllw]

The energy crisis in the EU is bad, businesses are struggling with the electricity prices,and passing this cost to the consumer.European companies are not competitive anymore.Urgent action in Europe is required,but after years,we are still talking without coming to a solution.

[ConsiderTheFollowing @ConsiderTheFllw]

In a 2018 EU speech,Trump explicitly warned Germany to diversify its energy supplies as "it is too much dependent on Russian energy".German politicians laughed in his face. How did then this energy crisis happen only 4 years later?These german politicians should be fired.

[ConsiderTheFollowing @ConsiderTheFllw]

Most of the economic issues we have today could have been avoided with proper planning.However people in the EU take their wealth for granted and seem unable to prepare for the worst and prepare alternatives.People simply cannot conceive they might be in serious hardships one day

[ConsiderTheFollowing @ConsiderTheFllw]

China has been unfairly advancing for 20+ years,but only when the German car industry is in danger,Germany and the EU wake up.Too little too late?This is a problem that has been 20 years in the making.China is now a leader in several fields,while the EU neglected its own industry

[ConsiderTheFollowing @ConsiderTheFllw]

Now that Chinese cars are assaulting the EU markets,Germany is waking up to the (unfair) chinese competition.Because they want to protect the sacred German card industry.But China has been doing this for 20+ years and already destroyed the Italian industry.Why they act only now?

[ConsiderTheFollowing @ConsiderTheFllw]

I believe in reshoring.Consumers are simply fed up with the Made in China,and they are ready to pay a premium to have a higher quality product produced in the US (or EU).However also the EU should finally wake up and act fast - see the Northvolt case.

[ConsiderTheFollowing @ConsiderTheFllw]

A market with 340 mill consumers is rich enough to be worth the investment of relocating production,and the industrial reshoring will increase employment and salaries.The price increases will be negligible compared to the benefits of low unemployment and rising wages.

[ConsiderTheFollowing @ConsiderTheFllw]

Despite what critics say,Trump's tariffs will protect domestic companies.The US market is 340 mill consumers strong.Tariffs force to either produce domestically in the US,or compete at disadvantage by having to pay import duties.Price might increase?Yes,but salaries will also.

[ConsiderTheFollowing @ConsiderTheFllw]

While the EU is defined as "single market",in reality it's composed by 27 internal markets not so much open to each other.If an EU business is scammed by another one from another EU country, the appeal for justice will be long, expensive and impractical.The trust is low.

[ConsiderTheFollowing @ConsiderTheFllw]

It's hard to forecast what will happen next.The EU needs urgent reforms (and cheap energy),and it's not granted it will act on time and properly.The european energy crisis only highlighted structural problems that have been ignored for a long time.

[ConsiderTheFollowing @ConsiderTheFllw]

The last 3 years have proved it.While all the major world powers are struggling,the US economy is going strong and becoming the world's safe haven.With Trump 2,the confidence in the US economy grew,while the EU,China,and the rest of the world are struggling even if they deny it.

[ConsiderTheFollowing @ConsiderTheFllw]

Any currency is backed by the respective country's economy,and despite all the talks,the US economy is by far the strongest and most resilient in the world,and this is confirmed by every single major investor.
Worlds' biggest wealth fund (Norway) has 50%+ of its assets in the US.

[ConsiderTheFollowing @ConsiderTheFllw]

as for point 2,until 2022 the eurozone had a bonanza of low rates in negative territory (-1%) for several years, which the US has never seen (lowest was 0.1% during Trump 1), and Japan is famous for the low rates (see the recent Yen-Dollar carry trade).

[ConsiderTheFollowing @ConsiderTheFllw]

Point 1. from previous post, no currency in the world is backed by gold, and no currency in the world is as stable as the US Dollar,no economy in the world is as solid as the US one,and the biggest stock market in the world is priced in dollars.Which all seems to me a solid back

[ConsiderTheFollowing @ConsiderTheFllw]

I have a hard time understanding all those rumors/memes about the US dollar,like "Money printer go brrr" or the fact that the US dollar is not backed by gold.Because:
1.Which currency in the world is actually backed by gold?
2.The eurozone and Japan had much more printing than US

[ConsiderTheFollowing @ConsiderTheFllw]

Investing in solid crypto projects like LINK, ETH and XLM is not more risky than having your funds managed by some bank investment fund which can also go down.
If you consider LINK-ETH-XLM junk, you have not done research clearly and you should study more the new technologies.

[Jim Cramer @jimcramer]

Younger people in 2000-2001 lost everything because they invested in junk. We must stop that NOW before it is too late. Appealing directly to Robin Hood people, do not be seduced by anger investing

[ConsiderTheFollowing @ConsiderTheFllw]

The most likely scenario in the coming years is an inflationary spiral, and the steady money supply will keep the economy alive.We might end up in a prices/salaries spiral similar to what southern Europe experienced in the 70s and 80s.Prices will grow,but also wages will keep up.

[ConsiderTheFollowing @ConsiderTheFllw]

It is true however that the incredibly low interest rates we have seen in 2021 are a first time in history, and unlikely to repeat any time soon.
Those that managed to snatch a property loan last year will reap good benefits from it.

[ConsiderTheFollowing @ConsiderTheFllw]

Currently, in both eurozone and US property mortgages with 10 years fixation have an interest rate way below inflation,in most cases around 1/4 of the inflation rate or even below.
Even with the current hikes,loans do have convenient rates,despite all the negativity surrounding.