Dear Members,
Standard & Poor’s Credit rating agency has downgraded USA rating from AAA to AA+ for the first time since 1917. I feel that this has happened due to the lack of “will from Washington” from both the democrats and republicans. We have seen the ugliest picture of US politics on the recent debt limit issue; I am sure intellectual people must have lost trust in politicians and their integrity. Politicians from both sides should have worked together and sorted out debt limit issue within closed doors rather than creating an ugly scene in front of world. We hope that now politicians won’t politicize this rating cut issue, and they will have to work hard and bring US back on its feet. Housing market is still suffering, job issue is a big concern and falling Wall Street is taking away trillions from market cap. In the last ten days world markets lost more than three trillion dollar in market cap. Last three weeks looked so ugly; it was very clear that leaders were not worried about common man and it looked as if they were just trying to warm-up for the next years’ election. It happened at worst point when gloomy scenario is out there in global financial markets. Downgrade of USA rating will have a short term effect on markets, because this is not GOD voice but surely lot to write in next week newsletter.
Europe is in big problem and looks very scary. We don’t know how EU and Euro will survive in medium and longer term.
Last two months we kept recommending staying away from markets until September as we saw uncertain time. At this stage it proved very beneficial; many institutions and traders are appreciating our advised of what we saw and mentioned.
Monday and Tuesday Moon will be in Scorpio and whenever moon is in Scorpio we always recommend to finish pending work and start planning about which next big trade you want to take. Next week’s newsletter looks very interesting as many great trading opportunities will be there.
Thanks & God Bless
Mahendra Sharma
Friday 9.00 PM Santa Barbara