IBEX 35 - Cold Spanish Winter

2021年12月6日

ESP35 or IBEX35 chart is a classic 'Go Short' example.

We like to hedge (Buy the strongest/ go Short on the weakest) and this one in particular is (still) the definition of the second category:

-The European Commission lowered its forecast for Spanish growth this year as the country's recovery from the COVID-19 pandemic lagged behind other European nations.

The commission estimates that the rise of Spanish gross domestic product will be 4.6% this year and 5.5% next year, almost two points less than earlier forecasts of 6.5% this year and 7% in 2022.

- in Spain — the eurozone's fourth-largest economy — GDP is 6.6% below 2019 levels.
(Germany has narrowed the gap to 1.1% compared with pre-pandemic levels, and France has reduced the difference to just 0.1%).

-Weak household spending and supply chain bottlenecks are weighing on the post-pandemic rebound.

- According to Brussels, Spain is the only EU country where economic activity will not return to pre-pandemic levels before 2023

Charts never lie. IBEX is expected to take a dip further. In the meantime it's our way to hedge our Long positions on other indices (as well as part of our exposure to Bitcoin...)


One Love,

the FXPROFESSOR