Financial Analysis – Week 49, 2020

Dec 08, 2020

Market Overview





There are 2,189 billionaires in the world, who are getting richer.

American billionaires, 676 of them, have increased their wealth by 27.5% since the beginning of the pandemic.

It is proof that billionaires are waging a biological war against the rest of humanity.

Neoliberal capitalism has no vision for the future.

The United States has 74 million children, 22 million of whom are starving, malnourished, and without any help from the state.

Last week’s poll shows that 56% of households in the United States are not sure how to feed their families.

Over 70 million Americans have sought unemployment benefits since the pandemic began.

There are lines of food in front of Food Banks.

Budgets for the police are drastically reduced, while the crime rate has increased this year from 60% to 400% in some countries.

If the police budget is reduced, then crime will erupt in its full expression.


Stock market

Dow Jones index for days is above 30,000. The inflation of the stock market continues.

Wall Street is waiting for new financial injections from the Fed.

They all link the growth of the stock market to the high expectations of companies that claim to have the vaccine.

An atmosphere is being created that vaccination will solve all economic problems and that the world will return to normal.

That is not going to happen.

Life will not be the same, as we lived in previous years.

We have entered a new age.

Whoever understands that and quickly adapts to the new age, will get a chance to survive.

My advice is not to invest in the stock market.

Only invest if you like to gamble.

But do not play all in.

Invest 10% of your capital.

If you happen to lose, you won’t regret it.


Gold & Silver

There is great turbulence in the gold trade, which is proof of the attempts of speculators to bring down the value of gold.

Proof – in ten days gold jumps $ 100, but in a few hours, it drops $ 100.


There is no reason because physically the same amount of gold has not changed. Only the papers are spinning, which have a cover in gold.

However, my advice is, don’t buy papers with a gold background.

It’s a new scam.

Buy – physical gold and take it in your hand.

Don’t even put it in the bank vault, because it will be confiscated as Roosevelt did on April 5, 1933.

Keep it somewhere hidden, where only family members and you know.

The price of gold is recovering and today the trading close at $ 1863 was completed.

Silver is undervalued at $ 24.51.

Analysts expect silver to jump to $ 70.

My advice is to invest in investment gold and silver because that is the only money.

Please note, these are long-term investments, so don’t panic when gold is volatile.

Experienced speculators are playing with your nerves, hoping that you will give in and sell your gold portfolio.

Stay calm.

You have protected your capital.

And wait.

Time works for you.

Platinum continued to grow and today stopped at – $ 1,019.



The price of metal has risen by 45% since March.

Copper rose 60% and reached $ 7,735.

Demand is dictated by China, COVID-19, and the big strike of producers in Chile.

Aluminum – $ 2,044.

Nickel – $ 16,020.

Zinc – $ 2,749.

It is estimated that metal prices will rise by 30% to 50%.



The dollar continues to fall and is currently at 1.2121.



All week, oil rose and finished at – $ 48.74.

Russia has started negotiations with OPEC for the price of oil in 2021.

After calming down the Arab ambitions, the new strategy intends to control the supply of oil on the world market.

Analysts predict an increase in oil prices in the range of 50 to 70 dollars per barrel for next year.



There are big oscillations on a day-to-day basis.

Today the price remained at $ 15,853.



In November, export growth + 21.1% on an annual basis.

The trade surplus rose from $ 58.44 billion to $ 75.42 billion.



Negotiations on Brexit over the weekend did not yield results.

Significant differences are in the areas of fishing law, guarantees of fair competition, and post-transition dispute resolution.

Britain sees the EU as a supermarket where you enter, take what you want, and pay at the exit.



German industrial production rose 3.2%.

Ireland’s GDP rises 11.1%.



Employment rose 245,000 in November, expected to be 469,000.

Expectations are betrayed.

In October, the trade deficit was $ 63.1 billion.



The president said he was pessimistic and that new money exchange programs were needed.

Two chambers of the American Congress are talking to the Fed about the amount of financial aid that will be injected into the system.

It will be very interesting at the end of the month.



Price growth including November was 4.4%.

The ruble strengthened the Euro – 89.6945 and the Dollar – 74.0971.

Banks returned to the Central Bank 400 billion rubles that are printed for the budget.



In November, foreign exchange rose slightly to $ 1,384.6.



The Bundesbank has come out with a forecast that the dynamics of bankruptcy in the first quarter of 2021 would be – 6,000 companies or 24,000 bankruptcies at the end of the year.

Analysts do not see the credit crisis at the moment, but they suggest it in the spring of 2021.



Government-issued bonds of 1.25 billion euros by 2050 with an interest rate of 1.72%.

Hungary continued to strain relations with Brussels.

Orban announced that Hungary pays 6 billion euros to Brussels and that it withdraws 4 billion euros from Brussels, thus losing 2 billion euros every year.



Branko Dragaš

Investment banker


Market Overview