PATIENCE

the capacity to accept or tolerate delay, problems, or suffering without becoming annoyed or anxious.

“you can find bargains if you have the patience to sift through the rubbish”

If you don’t have this quality, don’t invest in the stock market

On the markets, and not only, patience is the virtue of the strong.

Only in 1970 a negative result like that of the last semester was achieved and the World Stock Exchanges continue to be in the grip of the Bear. Yesterday, Piazza Affari reached its minimum for 17 months below the psychological threshold of 21,000 points.

As discussed in previous posts, underlying this bearish trend are fears of a stronger recession than expected, accompanied by an increase in inflation. This is the diagnosis that applies especially to Europe, where the cost of living is not linked to an overheating of demand, but a shock on the supply side. The proof is the trend of the euro/dollar exchange rate on the minimum for 2 years.

This devaluation of the single currency is due to a market that has no confidence in the ECB’s ability to deal with the situation. Surely this is an “unprecedented” scenario in which the BEAR market prevails for an even longer period than usual.

how to get out of it?

It all depends on our time horizon: following a short-term perspective panic prevails. For those who have PATIENCE and can wait, perhaps this is a time to do good business.

Investing GREEN

We agree that, given the complexity of the times in which we find ourselves, the European Central Bank has great difficulties in coping with this crisis, surely the ideas are clearer about the long-term choices. The committe argues that it is important to:

“take further measures to include climate change considerations in the Eurosystem’s monetary policy framework” and “to adjust holdings in corporate bonds in the Eurosystem’s monetary policy portfolios and in its guarantee framework, to introduce climate reporting requirements and to improve its risk management practices”. With these decisions, European bankers are committed to combating climate change in real action. Climate is the global challenge of this century capable of dismantling any certainty as demonstrated by the consequences of the Pandemic.

CLIMATE as a global challenge

In the long term, therefore, it is necessary to really invest in everything that is Green, lowering the threshold of 80% of consumption still in fossil fuels.

The markets can still reserve us many surprises, just have PATIENCE and evaluate investments in the long term. Concluding,

From the fruit you recognize the tree

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