The IMF’s prediction: in 2020 it will be a recession

The director of the IMF, Kristalina Georgieva, did not use half-words in his speech a few hours ago in videoconference in front of the G20 finance ministers “Our prediction for world growth in 2020 is negative, and we expect a worse global recession than to the financial crash of 2008 “

Kristalina Georgieva has been particularly concerned about emerging countries: according to IMF calculations, large international investors have withdrawn 83,000 million dollars from emerging markets: “It had never happened so far,” Georgieva underlines.

However, satisfaction in the IMF for the fiscal measures that European governments have taken to combat the emergency, although it is possible that fiscal measures may have to be increased once again so that businesses can restart normally after the virus has finally disappeared.

From a trading perspective, this confirms my idea that short positions in the various indices should be insisted in the short term, even if at this precise moment, while I am writing, the European stock exchanges are strongly increasing, as are the American futures.

Wall Street resumed selling on Monday

Another tough day in Wall Street, Coronavirus is without any doubt the main character.

The result was that Federal Reserve’s full firepower fails to arrest slide in markets (global stocks fell on Monday despite and while I’m writing S&P 500 index is down around 3 per cent).

“The Federal Reserve is committed to using its full range of tools to support households, businesses, and the US economy overall in this challenging time,” the Fed said in a statement. But will it be enough??? It

What is really clear to me is that US and EU economy will face severe disruptions in March and April (probably also May).

From my trading point of view, this is a signal that we have to insist in shorting the market, instead of hoping to buy stocks at cheap price (probably they will be cheaper…)

As I want to stay between 3 and 5 score risk, I will not use high leverage and I will try to think in the mid/long term, also because this is what my followers and copiers are asking to me. At the same time I will try to get every opportunity that I see to operate intraday (both short and long).

Happy trading. Stay home, stay safe!