I shared a long-term behavior of investing before, you earn money for the growth of the company and the development of the economy, so you need to understand in detail, it is difficult to rely on the market impulse for a long time, and the price is maintained for a long time. It’s weird to speculate on a short-term basis, and sometimes you don’t necessarily need to know the reasons for the ups and downs. Last week, I wanted to share the interest rate hike caused by inflation and whether the US tariffs will be lifted. I want to share this week. Personally, I am more worried regarding the European issue.
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Let’s briefly explain the problems in Europe. The problem of inflation in the United States is happening in Europe at the same time, and it is even more serious. The US inflation was 8.6% in May. The White House expects that although the CPI in June has a chance to be high, high inflation will be a thing of the past because of falling oil prices. Inflation in the euro zone was 7.9% in May and 8.6% in June, but did it fall back in July thanks to energy prices? Personally, I am still worried, because European countries are different from the United States. The United States has surpassed Saudi Arabia to become the largest oil producer in the world, and even once became a net oil exporter. If oil prices are high, U.S. shale oil might fill some of the pressure.
The European crisis cannot be ignored
However, Europe is facing a serious energy crisis. In recent years, environmental protection has been transformed. Many old petrochemical energy power generation has been shut down, and most of the energy depends on Russia. The latest reports suggest that Russia is using natural gas as a weapon. Gazprom has begun repairs on the Nord Stream 1 pipeline, and European countries, including Germany and France, worry regarding whether gas supplies will resume following a few months of winter. The French finance minister said Europe must prepare for Russia to cut off gas supplies, when in fact Bulgaria and Poland have already cut off gas. At the same time, the president of the German Trade Union Confederation warned that Germany, including aluminum, glass, and chemical industries, will have a permanent impact at any time. Coupled with the recent rise in the U.S. dollar, the Euro is close to the U.S. dollar. At the same time, Europe will soon raise interest rates. European countries have different national conditions, and not all countries have the strength of Germany and France. Therefore, I am personally more careful regarding the European crisis. In the next few months, there are really a few hurdles to pass, and the crisis will be triggered by Europe at any time.
Hung Hom Cable Screw
Financial freedom full-time speculators born in the 1980s
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