The sharp fall in stock indices in the United States can lower the price of grain

2021-01-28 12:01:34
Machine translation
The sharp fall in stock indices in the United States can lower the price of grain

Last year, the shares of us companies on the US stock market is actively growing, which was unusual, as for the period of the pandemic and the fall of profits. Yesterday in the market there are new indications that investors do not always rely on technical or fundamental factors when buying shares, causing stock prices of individual companies can suddenly rise significantly within a few days.


currently, the main factor influencing stock prices were the reports of large companies on the outcome of 2020, and the slow pace of the production and distribution of vaccines in the United States and Europe. Against this background, yesterday the stock indexes fell 2-2. 6%, in particular Dow Jones by 2% to 30303 p., S&P 500 2.57% to 3750 p., Nasdaq up 2.6% to 13270 p, which was the largest daily decline since October.


Example of unjustified growth of prices of steel company stocks GameStop and AMC Entertainment (American chain of video game stores), which for a day has risen by 135% and 300%, respectively, while in January – 800% on the background of disputes between small investors and large hedge funds.


Large hedge funds have discovered a powerful stance on the drop in the shares of these companies in 2021, however, small investors after dialogue in Reddit began actively buying stocks to punish "speculators." Rapid price increases have brought significant profits to investors and increased artificial demand for shares of companies that creates a financial pyramid. Large hedge funds, play on the slide, has received billions in losses, but the situation could change when the smaller investors begin to take profits and sell shares.


This example demonstrates overheated stock market and futures as a result of significant injections of funds from small investors who are trying to earn on changes of prices.


So, the corn futures on the stock exchange for the last 4 days fell 5%, and then increased by 5.5% on a single news item about China's purchase of a large quantity of corn in the United States.


now, Therefore, I advise you to watch the stock market and record profits, implementing corn and wheat at high prices as long on multi-year highs, they will not.

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