Week in a Glance: blue wave, OPEC + and cryptocurrency fever

10 gen 2021

The past week has finally confirmed the formation of the "blue wave". Biden is officially recognized as the President of the United States. The House of Representatives has long been under Democratic control. The Senate is now also dominated by the Democrats, thanks to the vice president's decisive vote.

One of the last attempts by Trump to retain power ended in the ugliest way (the storm of Capitol Hill by Trump's supporters). Despite the unprecedentedness of the event, the US stock market ignored this event completely. Negative NFP numbers were also ignored. The reason is the expectations of new stimulus from the Democrats.

Let us recall that it was the trillion injections from the Government and the FED that led to the fact that against the background of the most severe economic crisis in the country and the world, the US stock market grew by tens of percent. Markets are obviously looking forward to a repeat this in 2021.

So the trends of 2020 have intensified at the start of 2021. As a result, Musk became the richest man in the world, ahead of Jeff Bezos. Well, the situation was brought to the point of absurdity. The owner of a company that produces as many cars in a month as a Volkswagen or Toyota produce in a day or two (!) has become richer than a person whose company is the world leader in e-commerce.

However, this is not the only sign of the reigning madness. The blockchain fever has again created the illusion that the world of finance is moving into qualitatively new level, which means that people urgently need to buy everything related to cryptocurrencies, otherwise they can be late and miss the deal of their whole life. We have already written more than once how it will end. The only question is time. The funny thing about this situation is that even the most ardent supporters of buying cryptocurrencies can hardly point what is the fundamental difference between Bitcoin at the start of 2020 with price 7K, and Bitcoin at the start of 2021, when it is quoted at 40K +.

Another important event of the past week, which determined the mood on the oil market for the whole week, was the OPEC + meeting. It was supposed to approve the next increase in production by 0.5 million b / d. Considering that the opinion on this issue was divided (Russia was actively for increase, Saudi Arabia and a number of other countries were against this), they could not make a decision on Monday. On Tuesday, unexpectedly for everyone, they did not increase production, because Saudi Arabia offered to voluntarily reduce its production by 1 million b / d for two months.