Hamsters are still attacking, markets are in turmoil

The main event of this week is the organized attacks of retail investors. Millions of financial lemmings attack poorly defended positions on a number of assets and got some impressive victories. The Wall Street giants, on the one hand, are at a loss, and some are even losing billions, and on the other hand, on a number of assets, daily intraday movements are (+/- 50%!), which makes it possible to earn hundreds of times more than before.

We wrote about this uprising in more detail in yesterday's review, and in today's review, we note that events continue to develop, which makes financial markets very nervous. What if hamsters rush to storm not forgotten by God Blackberry or Nokia, but some of the companies on the go? This can lead to complete chaos. And that's scary, especially when you consider how overbought the market is.

The markets were somewhat reassured by yesterday's US GDP data. Growth for the fourth quarter amounted to 4%, which, although slightly worse than forecasted, is overall quite a lot, especially when you consider that half of the quarter US economy was in lockdown.

British Prime Minister Boris Johnson warned that the lockdown could last until at least 8 March. Against the background of this statement, as well as all the difficulties that British exporters and importers are now facing because of Brexit, it is extremely strange to see the pound at 1.37. So today we will actively sell it. The deal looks almost perfect: profit targets are measured in hundreds of points, but the risks are limited to tens of them.

In general, under the current conditions, the best strategy, in our opinion, will be to avoid risky assets and return to buying the good old dollar, which, by the way, looks rather oversold.