Powell’s caution is justified by the inflationary line and agenda of the Dems and also of Trump but we are moving towards lower rates. The buffet sale of Apple (NASDAQ: ) stake does not signal a flight from Big Tech
Until mid-July the scenario of economies and markets could not be more ambiguous, withslowing inflation which prompted central bank easing, the growth it held and the US quarterly which conveyed a picture of healthy accounts. Then fears began to emerge about maintaining ratings Big Tech, combined with disappointing data on economic activity, raised doubts that the Fed was perhaps too hesitant. At the beginning of the month, nerves took a turn for the worse, and the word recession returned to the front pages, first in the USA and then in Europe. The WSJ spoke of an “election effect” that would alarm both factions in US politics because of the danger that adeteriorating economy could affect the president’s campaign, which is ready to accuse the Fed of not supporting growth by being cautious about easing.
GLOBAL SLOWDOWN AND BERKSHIRE’S ACTION
The prices of goods And raw material points to a global slowdown, China shows no signs of emerging from the quagmire and Europe remains poised between expansion and contraction, with its political convulsions and its inability to initiate reform for more economic, financial and defense. Meanwhile, large consumption-related stocks retreated on both sides of the Atlantic as the is entering correction territory. That’s the news Warren Buffett its stake is halved Apple, though the transition began in the second quarter as the Cupertino company remains at the top of Berkshire’s assets, along with Amex, BofA, Coca Cola (NYSE:) and Chevron. The disinvestment seems a normal return after almost 10 years of continuous and profitable accumulation rather than a sign of a escape from technology, in which Buffett has never invested heavily, unlike for example insurance…
** This article was written by FinanceLounge