Sunset Strip 27th August 2020

Mathan Somasundaram

Deep Data Analytics

Local market started positive on global investor buying for the currency trade before profit taking faded the positive performance through the day.

EU markets were boosted into positive overnight on Germany keeping stimulus going for longer while US market was boosted on the view that US Fed update tonight will deliver endless stimulus. US CDC watered down quarantine, tracking and testing standards as political pressure gets result like the US Fed. EU has already become an endless money printing ponzi scheme like Japan and tonight US will confirm that they have joined the asset/debt bubble frenzy. If money printing solved economic problems, why wouldn’t everyone do it? Maybe it doesn’t work and leaves a bigger mess!!! Money printing delays economic mess like recession but economy still deteriorates gradually and falls into a bigger mess when there is no reform to change the dynamics. US$ is likely to be the victim of US economic mess and that will create inflation for them and deflation for the rest of the world. Expect US Fed to talk about ignoring inflation undershooting and overshooting in the short term. If I was a betting man, my money will be on them getting it wrong. Irrespective of who wins the US election, they will inherit a fiscal mess!!! The best three performing sectors were Materials, Retail and Industrials while the worst three were Utilities, Energy and Banks. 

Remain nimble, contrarian and cautiously pragmatic with elevated global macro risks!!!

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Mathan Somasundaram
Founder & CEO
Deep Data Analytics

Over 25 years’ experience in the finance/tech industry. Mathan has worked extensively in all parts of the finance sector (i.e. County NatWest, Citi, LIM, Southern Cross, Bell Potter, Baillieu Holst and Blue Ocean Equities). Currently Founder and...

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