Last week the yoyo conditions in the US stock market continued with the Dow Jones Index falling on Monday to a low of 18,213 points before rising over the next three days only to fall away on Friday.
While the Dow Jones finished the week up over 12 percent, the good news is that the fall on Monday was the low for last week, with the market falling to a good support level at around 18,000 points. So is this the bottom?
Right now, it is not a matter of if the Dow has had its low, it is a matter of when will the next fall occur and how bad will it be. For now, I expect the market to rise for one to four weeks, which will tell us more about whether the Dow will fall below 18,000 points or whether it is likely to stay above this level.
If the Dow Jones breaks below 18,000 points, it has very strong support around 15,000 points and in my opinion, it is highly unlikely that this level will be broken. If we assume this as the worst case, then the Dow Jones could fall a further 20 percent from last week’s low before we see an end to the stock market crash.
In recent days the US Government has approved a 2 trillion-dollar Federal bailout with most adults getting $1,200, which the Government hopes they will spend to stimulate the economy. That said, the real crucial aspect to the bailout is the support for small business and I believe the Senate’s plan is a good one.
A couple of key points to keep in my mind is that the $350 billion forgivable loan program is designed to ensure that small businesses do not lay off employees. Business will also receive a 50 per cent refundable payroll tax credit on wages to retain workers.
While in every storm there are companies that not only survive but thrive, the question that remains is which businesses will survive this economic tsunami? To answer this, we need to look at e-commerce websites that allow people to set up and run businesses from home including IT services and support, data and video conferencing services such as Zoom, other messaging and conferencing services, cloud services such as accounting, customer relationship management, sales and marketing consulting to name a few.
We will also see growth in self-sufficient sustainability, as people will want to be safe and more self-reliant. I also expect personal services, such as virtual personal assistants and other virtual workers will look at deriving revenue from home. Therefore, solutions such as becoming an Amazon or eBay, seller may well flourish. Personally, we are getting a lot more enquiries as more and more people are seeing the stock market and trading as a way to not only make money but protect their financial future.
__________________________________________________________________
Subscribe to show your support and to stay up to date:
For more information on our services go to:
To purchase Dale’s award winning book, Accelerate Your Wealth, visit:
Listen to our Talking Wealth Podcasts, Voted No.3 Globally:
Do you have a question? Email us at: info@wealthwithin.us
#WealthWithinLive #DaleGillham #AustralianStockMarketShow
Nice content…
Upload next video waiting
Thanks ANURAG PRAJAPATI 134 – appreciate the support!
Enjoyed these sessions with Jim and your input Dale as usual. Lucky you Dale, sounds like a beautiful property too.
Thanks M.R – appreciate the support! Yes I am blessed to live in a special place with Kangaroos, fresh air and trees.
If I cannot go to the shops except to buy essentials-how am I going spend any extra cash the Gov’t gives me??
Online like Dale said people adapt to the market.
Good answer
Less dense or more remote, affluent suburbs have been destined to do well out of the move to a more virtual workforce.. perhaps not for 12 months at least though
You may be right, that said we humans are very adapable maybe people will make balcony offices?
@Wealth Within true! – btw great video – Though the last place I lived in was in Southbank, Melbourne and it was frequently windy plus there’s the traffic noise.. it will evidently still depend on stage in life and lifestyle preferences, but with the impending advent of self-driving cars (of different sizes, sharing options and quality) I think more people might start opting for natural space due to potentially more efficient and diffuse traffic where necessary for livelihood. I.e. Considering also the prospects for a gig economy.
But, I’m living in Vancouver now and thinking more in terms of long-term snow and hiking access!!
Hello everybody, please, I need your help: as my English isn’t good, I’m Italian, I didn’t undestand if DJ is going until 18.000 or if the previsions of the analyst are for a rebound in the next weeks.
Thanks for your help…greetings from Italy
Hi William, your English is fine. The Dow has fallen to around 18,000 points already, however as we say in the video it may fall further. We are expecting a bounce but it is likley to be short lived.
@Wealth Within thank you so much for your answer so fast; I think to have understand in the video that in the next 3-4 weeks DJ can rise; is it the case to purchase a fund (Italian) which invests into the American stock and try to achieve this little rebound or is it better to stay away? Thanks a lot for your kindness and my best wishes for your work…a deep huge from Italy (Veneto)
Hi William, that is our pleasure. Right now it is better to look after your health than try to get into the stock market. Be patient and take this opportunity to learn.
@Wealth Within I don’t have words to thank you for your kindness, I’m really grateful to you; I will do like You suggest me; thank you very much, I’ll continue to follow You on YouTube; a cordial and affectionate greeting from Italy ciao! P.S. You’re a magician: DJ is falling 4%…
YUP
headed to …. 12000 by end of may
I very much doubt that, but hey I could be wrong.
@Wealth Within I VERY MUCH HOPE I AM WRONG…..BUT MAYBE JUST A HUNCH…..I AM A RETIRED BACK OFFICE WALL STREETER FROM THE 80’s …first time in my lifetime… global economy is on its knees PEACE
Thanks William Frank – appreciate the support!
Lol
Quantitative easing is not working. Markets are going down and down. US death tolls from COVID heading to 3000 deaths per day. And as deaths continue to accumulate US hospital capacity will be passed meaning lots of unnecessary deaths because of lack of medical care. Economy will drop by 25% for this year for sure.
Thanks George Christoforou – appreciate the support!