Credit Suisse: It's time to buy technology companies

News related to US tax reform has led to a serious downsizing of technology companies. And according to Jonathan Golub, an analyst at Credit Suisse, the time for purchases may have occurred.
Information becomes more and more about tax cuts, and investors now have more clarity. This led the US indices to new records, with investors shifting from technology to industrial and financial companies.
Last week we saw growth in consumer, financial and industrial companies and a decline in technology ones.
Technological companies generally outperformed the market this year, and will probably continue to do so next year, says Goleb.
Golub also pointed out that technology companies are traded at a slightly higher ratio than other companies. The cost-benefit ratio for technology companies is 19.8, while the S&P 500's is currently 18.2.

Gold with its biggest weekly decline since May

Gold prices stabilized on Friday, but recorded its biggest weekly decline since May, after better-than-expected US employment data. The data strengthened investors' expectations that we will see an increase in interest rates in December.
This, in turn, has led to an appreciation of the dollar, to which the price of gold is very sensitive.
Over the past week, gold has overcome the lower limit of the range that has been trading since July. This helps to increase the decrease of the metal.
The spot price of gold ended late last week with a minimum increase of 0.1% to 1 247.50 dollars per ounce. This was close to the lowest value of $1 243.71 per ounce, or its lowest level since July 26. The metal lost 2.5% of its value this week, which was the third consecutive price depreciation.

What can happen if Trump is removed (2)?

An initial reaction in such a scenario would be the suspension of the so-called Trump Rally, which has taken the US indices to new historical records, according to Peter Kenny, chief strategist at the Global Markets Advisory Group. The expert commented that the investors really felt comfortable about what to expect from Trump as president.
Fundamentally, the US economy remains in good shape in an environment of low inflation and steady growth. Meanwhile, Trump's nomination for Jerome Powell's fed leader has won the admiration of market players.
It is possible, after the initial shock to the market, with a potential removal of Trump, that markets quickly find support, Kenny said. Pens, is likely to continue with Trump's planned tax policies, as well as the nominated Powell.
Or, according to a number of experts, such political uncertainty can be short-lived and quickly overcome. And if you follow Buffett's advice - to buy when everyone is afraid, a deeper adjustment of the indices, could provide good opportunities for investors to enter the market.

What can happen if Trump is removed (1)?

Financial markets have experienced a difficult Friday last week. The leading US indices dropped momentarily after it became clear that Michael Flynn admitted he had lied in the testimony given to the FBI and could provide new evidence of inappropriate relations between President Trump and Russia.
What could happen?
The chances for President Trump to step down from his post are rising. This could be the worst scenario for investors because it would lead to serious political uncertainty at a time when stock prices rose seriously in anticipation of Trump's tax reform. The latter, however, is delayed and there are serious chances not to become a reality since the beginning of next year, as were the real expectations of investors.
There is a real opportunity for Washington to turn to its biggest crisis since the Watergate scandal in the early 1970s. At the same time, when Trump is removed, he is expected to be replaced by current Vice President Mike Pens, who would become premature the 46th US president.
And while this still seems like a fairly unlikely scenario, more and more investors are beginning to wonder, what would President Pens mean for the US stock markets?

Oil with a slight increase in expectations of US stocks report

Oil prices rose slightly today due to expectations of a decline in oil stocks in the United States and after the OPEC deal last week to extend production constraints.
The Brent with delivery next month added nearly one percent to its value, to a level of $63 a barrel.
US crude oil is traded in the morning at $57.40 a barrel or with no significant change from yesterday's levels.
Last week, OPEC countries agreed to continue their production restrictions at 1.8 million barrels by the end of next year. This, however, was not followed by much reaction to the price of oil.
According to Goldman Sachs analysts, Saudi Arabia and Russia have shown a strong will to continue the production constraints by lowering their forecasts for the price of Brent and US crude oil to 62 and 57.5 dollars respectively.

GS: The bitcoin is a raw material

The bitcoin is more like gold than the US dollar, according to Jeff Curry, head of the Goldman Sachs State Investment Bank unit, in a special interview for Bloomberg TV.
The bitcoin does not have the same amount of liquidity as gold, which is the main difference with the metal.
According to Curry, the price of the bitcoin is determined by the market and is not supported by a government, public or private company, just like gold.
Of course, the bitcoin is much more volatile than gold, and Curry explains that liquidity is the main reason for that. There are $8.3 trillion amount of gold worldwide, while the market capitalization of the bitcoin is close to $165 billion, making it much less liquid and more volatile.
Curry's comments come true after the cost of the bitcoin reached levels of more than $11,000, and then fell only a day later to less than $10,000. They come at a time when Goldman Sachs chief Lloyd Blenkheim said he is still considering the possibility of a bitcoin.
The meteoric appreciation of the bitcoin raised public interest in cryptocurrency to record levels.

Demand for gold rose after the political events in the US

Political developments in the US since the end of last week have prompted investors to raise demand for "rescue assets".
The gold has taken advantage of the situation and has appreciated. The noble metal added 1% of its value to levels above $1,290 per ounce.
More and more experts are beginning to talk about testing a psychological limit of $1,300. The last level has been limiting the growth of the metal over the past few months. If level will overcome, however, we can very quickly see a further appreciation for the yellow metal to $1,350, and later to $1,400.
The rise became a fact after former Donald Trump's security advisor Michael Flynn said he was ready to testify about unlawful ties between Trump and Russia.
The report raised fears that Trump may soon not be the president of the United States, leading to serious political and economic shocks.