Last week I mentioned that I was unsure as to why Tesla stock was bid. Later in the week Tesla CEO, Elon Musk concurred! His tweet “Tesla stock price too high imo” on Friday helped knock about 10% or $14 billion off Tesla’s stock price.
Berkshire Hathaway Inc, announced on Saturday that in April it had sold its entire stakes in the four largest U.S. airlines- Delta, American, Southwest and United. Veteran investor and Berkshire Hathaway chairman, Warren Buffet knows a thing or two about value. Tesla CEO Musk comments may also be prescient for both the electric car industry and the automobile industry as a whole. One thing is certain and that is the future is uncertain for just about everything!
This week, both the Reserve Bank of Australia and the Bank of England will announce their respective interest rate decisions. Both are very likely to stay on hold- the RBA at 0.25% and the B of E at 0.1%. The UK’s central bank will also deliver its inflation report.
On Friday the RBA will deliver its statement on Monetary Policy which I think will probably be the most interesting announcement of the week. Friday also sees the (not too) eagerly awaited employment reports from Canada and the US. The headline figures will make terrifying reading and are virtually untradeable.
The beginning of May will start to see the measured release of people from confinement and gradual re-commencement of business and commerce. Let us hope that new cases of Covid-19 and deaths related to the virus continue to fall and that the World can quickly regain momentum. Let us also hope that people are sensible enough not to contribute to a second wave of the disease.
I believe that stocks are in for an uncertain week. I remain positive about my views for the INR, CNY and AUD currencies versus the dollar.
Good Luck and Good Trading! Ben Robson
Ben Robson is the CEO of Spectrex Commodities and author of Currency Kings- How Billionaire Traders Made Their Fortune Trading Forex And How You Can Too.
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