Beware of the technology sector

The investor who ruled the world's largest technology fund during the "technological boom", again warned investors to keep themselves from the technology sector at the moment.
Paul Meeks, managing director of Sloy, Dahl & Holst, predicted that a new turbulence approaching the markets, given the rising asset prices.
Because they are so volatile and high beta, in correction, they will not adjust just by 2%. They will be down 20%, Meeks commented before the CNBC financial magazine at the end of last week.
This does not mean that Meeks abandons technology companies. The investor who holds in his portfolio shares of Apple and other technology companies believes that the sector is strong.
According to him, he has been watching the technology industry for a long time, and he claims that the foundation behind technology companies and compared to the other 10 sectors of the broad index is stronger than ever.
The expert's warning became a reality in celebrating new historical records for the Nasdaq technology company index, which rose by more than 7 percent from its bottom, with the February correction.
Facebook's is the top company in the FANG group according to the expert, as well as chip makers.

Draghi pushed the dollar up, dragged the gold down

Gold has fallen, and the dollar has risen since its three-week minimum against the euro after ECB chief Mario Draghi signaled that any normalization of monetary policy would be very "smooth" and "gradual".
The single currency recorded a significant decline over all major currencies, following Draggy's comments.
Draghi also said that inflation is still weak, which is likely to predict a slight change in ECB policy.
The spot price of gold fell 0.3 percent to $ 1 321.09 per ounce. It reached a one-week high of $ 1,340.42 an ounce on Wednesday before closing 0.6% down. Gold futures fell 0.4 percent to $ 1,321.80.
According to Georgette Boyle, an analyst at ABN Amro, the dollar will remain a key driver of the gold price. The only reason the gold price rose to $ 1,340 per ounce was the weakness of the US currency last week, the analyst said.

The dollar is a warning of a serious economic slowdown

The value of the dollar has yet to be lowered, according to some analysts who believe that there is still room for adjustment before the dollar gets better. And this downturn can be predetermined by fears for global economic recovery, analysts say.
President Trump's tariffs risk launching a global trade war that could hurt global growth, market observers say.
The dollar lost 7 percent against the yen from its peak on January 8 this year. This is interpreted as an annual loss of 34%, according to Bloomberg.
At a time when the world economy is just beginning to emerge from the crisis, one thing that could hurt this cycle is a trade war, and we are in the first phase of it, said Boris Schlossberg, Managing Director of BK Asset Management. According to him, the yen reflects this threat better, faster and stronger than other instruments.
The IMF head, Christine Lagarde, also warned of the negative impact of a potential trade war. If we witness a trade war, it will affect trade volumes and reduce global growth, Lagarde said.
Historically, the dollar has weakened as a result of fears of protectionism and trade wars. When former presidents like George Bush and Bill Clinton presented a wide range of import taxes in 2002 and 1995, the markets were selling the dollar as its value declined by 15% overall.

Gold fell on Wednesday

Gold also fell on Wednesday, due to fears of a trade war and the resignation of Trump's economic adviser. Since its rise from the previous days, as a result of political instability, the noble metal has fallen to trade levels from $ 1,325 per ounce.

This happened despite the observed decline in dollar levels compared to other major currencies. The euro, for example, rose to levels above 1.2400 this week, staying permanently above this limit, and seems likely to attack the next key level at 1.2500.

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Oil with a fall

Oil prices dropped on Wednesday after data suggest US stock growth, and financial markets have fallen as a result of fears of a trade war and the resignation of Trump's economic adviser.
US crude oil futures lost 1.28 dollars of value to a level of $ 61.10 a barrel, or a decline of nearly 2% a day.
Brent futures declined by 1.3 dollars to 64.40 dollars a barrel.
US oil inventories rose 2.4 million barrels last week, which was slightly below the analysts' average expectations of 2.7 million barrels.
Investors, however, sold the raw material as a result of concerns about the state of the world economy, in an environment of increased danger of a world trade war, which is unclear how it will affect the growth of the world economy.
Additional political tensions were also brought after the resignation of President Donald Trump's Chief Economic Adviser.

GS: Decline between 20 and 25% for US indices with 10-year interest rates at 4.5%

If 10-year interest rates reach 4.5 percent by the end of the year, stocks may see a sharp decline, according to the US investment bank Goldman Sachs Group Inc.
Stress tests made by the bank indicate that raising interest rates to 4.5 percent would trigger a serious fall in indices, according to analyst Danuan Sturvenen. He also commented that under such a scenario, the US economy would likely be seriously delaying, but would hardly get into recession.
An increase in interest rates to 4.5% by the end of the year would result in a 20 to 25% decline in stock prices, the analysis said.
While the recent decline and correction of the indexes are largely predetermined by the rise in 10-year bond yields, interest rates are expected to continue rising to 3.5 or 4%.
A drop between 20% and 25% in indices, from their peak at 2 872.87 points, would mean a drop to around 2 155-2 298 points. The indices ended last week at 2,747.30 points.
The broad US index, however, reached the lowest value of 2 581 points on 8 February.
If Goldman's scenario materializes, that would mean a long way down for the US indices.