What happened in the markets today - from a historic speech in Davos to the Taco agreement with NATO π’
Throughout today's trading day, several times we wanted to report to you what was happening, the problem was that by the time we wrote things down in detail, everything had turned upside down.. π―
The drama started even before morning coffee. βοΈ
President Trump's plane on the way to Davos made a "U-turn" due to an electrical malfunction, which delayed him by three hours. π
We don't quite buy the story of the accidental "malfunction" - this delay arranged for Trump to take the stage exactly at the second trading opened, wizard timing or a stroke of luck? π€
You decide, but trading room volume was already at its peak. βοΈ
πΊπΈ The victory speech and disdain for Europe πΊπΈ
Trump took the stage and acted as if he had just reinvented the wheel. πΊπΈ
He declared inflation defeated and predicted economic growth that would leave analysts in the dust, while promising to boost the standard of living in the United States, he did not forget to bash Europe, according to him, the old continent is simply "unrecognizable" and is heading in the wrong direction. β
In any case, the message was clear, the American model is the only one that works, and the rest are simply busy closing energy plants while we are opening them, he even added that wind turbines are "losers and inefficient" and promised to dismantle sustainability, from his perspective, bureaucrats are the problem, and the solution is to send them to look for jobs in the private sector. π
The president was not content with stories and poured data into the microphone: π€
π₯ Oil production surged by 730,000 barrels a day and natural gas production is at an all-time high.
π₯ He pulled a rabbit out of the hat with Venezuela - "we collected 50 billion barrels of oil" from there, promising to share the revenues.
π₯ The stated goal: fuel price below $2 a gallon.
π₯ The deficit was cut by 77% while factory construction rose by 41%.
And for dessert, a dramatic declaration about a "heavy" entry into nuclear energy, because apparently coal is no longer enough. β‘οΈ
Trump also jabbed at China for its green model β that they sell wind turbines to the world but use coal to advance. π«
Trump explained unequivocally, America is the engine, and if it falls β everyone goes down with it. π
Greenland's real estate and the Golden Dome π‘ Here it turned into a Shabatarbut sketch, Trump explained that Greenland is actually part of North America ("our territory") and asked to buy it as "a piece of ice for defense", he claimed that NATO and Europe do not appreciate the United States, but promised to remain 100% in the alliance - they will still be there for him. β
On the domestic front, he promised that drug prices would plummet by 90% (an almost imaginary number), and that mortgage and car prices were already falling, in addition, he announced regulation for Bitcoin and crypto to block the Chinese and hinted at the appointment of a new central bank chairman soon. β
If you thought yesterday was tough in the market - wait until you hear what Trump has to say about it: π¬
He dismissed recent market declines as "peanuts" and prophesied that the stock market would double itself. π
What about defense companies? βοΈ
Trump has an update for them - forget about stock buybacks, the mission now is to produce weapons quickly and build a "Golden Dome" that will also protect Canada - because according to Trump, Canada exists only thanks to Americans. π‘
The index rollercoaster: from the Nasdaq to the Taco π
The market initially swallowed the bait happily. ποΈ
The Nasdaq and Russell 2000 surged by almost 2%, and nuclear energy stocks celebrated, everything was green and glowing until Denmark's Foreign Minister, Lars LΓΈkke Rasmussen, arrived and issued a resounding "no" to the offer to buy Greenland. β
At that moment, the indices made a 180-degree U-turn and plunged back down, but Trump doesn't like his party spoiled, he quickly announced that he had reached an "agreement" with NATO on Greenland and that tariffs would not take effect, this announcement, dubbed the "Taco agreement", sent the market soaring again, with the Russell 2000 closing up almost 2%. πΌ
If you feel like you're trading in a Vegas roulette, it's not because you're hallucinating - the market simply reacts to every tweet as if it's the end of the world or the beginning of a new golden age. π¬
Between a speech at the podium and a tweet, this market proves once again that it suffers from severe ADHD, and the winner is whoever manages to stay on the train without throwing up. π
The only difference between the stock exchange today and a casino is that in Vegas you at least get free drinks while losing your shirt. π«