FOMO, The Swiss Equity Market leads the way!
The Swiss20 index touched new all-time highs today. The index is up over 13.5% year to date. The Swiss Market Index (SMI) represent 80% of the entire Swiss equity market Cap and 90% of the trading volume on the SIX Swiss Exchange.
The top 5 companies in the Swiss index:
Is the performance of the Swiss index, which is heavy on banks, Insurance, pharma and food/beverage a signal for the rest of the markets that valuations and global growth are positive and we can expect new highs soon in other markets? Or are we seeing a heavy dose of FOMO (Fear Of Missing Out) and investors are not afraid of a market correction, rather on missing the next leg higher?
It seems the focus of the Trump approach is moving, in the short term, towards Europe, particularly France as Trumps is focused on tariffs of 11 Bln USD of EU goods.
It is not a big number considering the amount of trade between the U.S. and Europe, but with Brexit, European elections and other issues taking up the focus of politicians, this adds another issue to deal with. Add in Mexico, China and Canada uncertainty and trade trouble doesn’t seem to be priced in.
Gold is in the middle of it’s recent range and we will be looking a breakout to follow and our view is that we will see higher levels.
|Ticker||Date Opened||Entry Price||Stop||Target Price||Current Price||% Change|
|Long CAMECO (CCJ:xnys)||12/03||11.92||11.20||13.00||11.86||-0,50%|
|Long Call Option XAUUSD||18/03||13.09||6.03||-54,09%|
|Short Call Option XAUUSD||18/03||5.11||3.34||+34,64%|
– Mark W