Double bonanza coming! Stock markets set to gain more, says Anil Singhvi

The US Government and the US Federal Reserve are both in action to boost the economy. The US Fed is already buying $120 bn in bonds every month for the past few months and may increase the quantum going forward or may change the methods of buying as per their requirements. The US markets will get a boost either way if they get additional liquidity or additional methods in required areas. In fact, it is great news for the US Markets that even the US Fed is ready to get bigger stimulus package as early as possible to boost the economy. It is extremely important to ensure that the stimulus package is being implemented and executed as planned to benefit key areas.

जल्द आएगा राहत पैकेज !

अनिल सिंघवी- अमेरिकी सरकार और फेड दोनों एक्शन में, लिक्विडिटी, वैक्सीन और स्टिमुलस पैकेज की उम्मीद के चलते बाजार में तेजी।#EditorsTake #USMarket #USFed @AnilSinghvi_ pic.twitter.com/UCMolP7NRd

— Zee Business (@ZeeBusiness) December 16, 2020

The US Government may announce a stimulus package before or after President-elect Joe Biden is sworn in. Analysts are expecting anything close to $900 bn from the US Government. It is difficult to say when the stimulus package may be announced, this week or next week, but one thing is for sure and that is that the package is coming soon in the markets. 

This is Double Bonanza for the US Stock Markets and Global Markets as not only the US Government but also the US Fed is ready to boost the economy. It would not matter to the markets whether it was President Trump, before he exits office, or President Biden, after he is sworn in, who announces the stimulus package, infusion of the liquidity via stimulus package is the most important reason why the global markets are soaring higher and higher. 

Dollar index has weakened, metals are rising, gold prices are recovering, oil prices have moved over $51 and the equity market are trading extremely strong.

Market is clearly ignoring increasing number of Corona cases, reimplementation of lockdown measures in the US or in Europe as markets are aware that the Vaccine is almost ready to be supplied to the end users sooner or later. Since there is strong liquidity in the hand right now, markets are forward looking and moving strongly from strength to strength.

Going away of Corona, supply of vaccine to end users and lockdown implementation are the present challenges. Easing of lockdown and recovery of the economy is the forward looking future that markets is looking for and moving strongly. The US markets and Global markets are forward looking and moving up on this positive note.

Markets are not worried at this stage as there is not only strong liquidity in the hand but also there is positive news of Vaccine development and availability soon. These are the key reasons why markets are moving up strongly and Nasdaq made a new high yesterday. Apple shares soar 5% yesterday because of which Nasdaq made new highs.

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Corona issues have taken backseat while stimulus package to boost the economy has taken front seat because of which market are trading with tremendous strength. There are no concerns or disturbing news in the market which may indicate some profit booking or selling in the markets.