Rotting Apple Prices Reveal Market Fragility

13.06.2017 • Switzerland

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Henry Bonner – Strategy and Council Letter (Switzerland) –

Still in Baltimore, we’re flying tonight … we’re going to the UK …

We say goodbye … while the sun is shining …

Fall of Apple Plombe the Paris Stock Exchange …

All stock exchanges went down Monday after a sharp decline in the New York market …

The S & P 500 lost about 2% on Monday, while the tech sector fell …

Apple, whose valuation was about $ 800 billion last week, began a drop of more than 7% since Thursday …

The manufacturer of the iPhone lost about $ 50 billion in valuation in four days.

Here in France, the CAC 40 is down since early May, losing 3.5% over a month … and this fall continued on Monday, losing 1.11% in a day.

Why the Fall?

The Fed, the equivalent of the ECB of the United States, is in the process of raising its interest rate on Tuesday or Wednesday.

The market anticipates that shares on the stock market will decline because of this news.

In addition, a publication by Japan-based bank Mizuho challenged the growth of Apple’s shares, and markets dropped its price by 7% after the report was released.

The rest of the market in the United States fell in tandem … the S & P lost 0.3% since Friday … and other stock markets around the world following the pace.

Almost everyone was frightened by the downside … a chief analyst at Deutsche Bank, David Bianco, even warns to withdraw some of his money from the market. According to him, the market could fall by about 5% this summer:

“The S & P usually reaches its peak in the spring, but summer often sees a downturn because investors come back on their predictions and valuations and start preparing for the fall. We will have a moment of importance in September-October, because the market then decides to resume its rise or else to decline for the rest of the year. ”

Will the market “catch up?”

We will see it in the next few days.

Meanwhile, the Bitcoin and Ethereum blaze …

Bitcoin surpassed $ 3,000 per “coin” Sunday … and its competitor, Ethereum, which is the bank’s favorite JP Morgan, also reached a new record above the $ 407.

As a reminder, a piece of Ethereum traded at $ 7.89 on January 1, 2017 … which means that the value of this currency climbed more than 5,000% for the year …

Of course, everyone would have liked to know when the crypto-currency was going to fly away …

Will the movement continue?

With all the attention they receive, the Bitcoin and Ethereum might well climb higher … but given the size of their winnings in recent months, it would not be surprising to see a decline in the coming weeks.

More likely, the gains in the following months will come from some of these crypto-currencies in particular …

Ethereum, for its part, benefited from the attention it received from JP Morgan, and the promotion that the bank has made for this particular currency …

We would not be surprised to see dozens of new species of crypto-currencies born in the coming months …

We are currently working on a way to benefit some of our readers …

To be continued.

How to Benefit During a “Boom” in the Economy …

We are in the Maryland countryside, near Chesapeake Bay …

A neighbor has discovered in her traces an old house dating from the 17th century … which is rare here.

A team of archaeologists began digging up the foundations of the old habitation, as well as dozens of ceramic pieces and the like.

In this corner, a community of Quakers was installed …

Driven out of Massachusetts by the Puritans, the Quakers settled in the region … some were rich.

Later, Quaker Sect leaders forced their members to free their slaves. Some have. The others converted to Anglicanism.

How does this relate to our subject?

The settlers have freed up resources for Europe – sending timber, ships, iron, and tobacco to England and the rest of the continent.

In return, England had a market for exports that did not exist before. All the ceramics used by the colonists came from England or Germany.

Perhaps one of the biggest exported goods was the tobacco pipe, of which there are old models, hundreds of years old, scattered all over the country.

In short, the “conquest of America” ​​opened to Europe markets that had not existed before.

Similarly, “crypto-currencies” will open up markets. Those who buy the Bitcoin are perhaps like the “settlers” of the 16th and 17th. On the other hand, these colonists are not the only ones to participate in the story.

We are still waiting to see the full extent of what the Bitcoin, the Ethereum and others will entail.

You will not necessarily need to get on a boat and become a pioneer in order to “participate” in this revolution.


Henri Bonner

-Read more at (French)-

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