July 31, 2020, 12:53 pm EDT
Tech Lost The Battle
Strong earning reports from AAPL +6%, AMZN +4%, FB +7% cannot change the fact that stock markets as a whole are breaking down: DJIA -1%, S&P -0.7%, Nasdaq -0.1%.
This is critical junction at this moment because mega caps technology cannot overcome the difficulty of COVID-19 outbreak, another economic impact, potential less jobs, and dwindle GDP.
Government money-printing strategy or so-called stimulus works hard and maybe effective as a short term solution. If the pandemic remains for the longer time, the negative impact will definitely arrive. Inflation threats will come from many areas, oil price, food, dairy products, etc.
Our portfolio holding in gold miners Newmont Corp (NEM) +5% jumps again today. It shows both potential inflation and risks-on market reaction.
Recommended trading strategy is to stay alert and trim down portfolio positions. Adding gold stocks is a reasonable choice.