IGTA Journal - Autum 2020

And yet, the stock exchanges of "classic stocks", such as the Dow Jones or the Dax, are rising again! They had plunged with the first cases of the virus, until, in May-June, they fell by 35% compared to their January level, and then almost recovering the lost ground. What is normal, in this health crisis after the financial crises, is what is happening to the Nasdaq. It is 32% higher than its level at the beginning of January: it is the values that it houses that should shape the growth that is coming, more computerised, more digitised, stronger, over and above major losses and massive downgrades. For the other stock exchanges: thank you, central bankers! The industrialised countries are indeed starting up again, but more slowly than before the covid-19, which will imply more budget deficits, more public loans, more financing for companies to restructure, regroup, invest in new technologies and train. But nothing will be possible if central banks do not buy more treasury bills. This was perhaps Mario Draghi's message: with covid-19, it is the "bad debt" that allows the "good debt". So, we need more. Treasury Bills Stock Exchanges 1 Jan. 2020 24 Aug. Decrease 1 Jan. minimum 24 Aug. USA 1,85 % 0,64 % 121 bps Dow Jones 100 65 99 Nasdaq 100 79 132 Germany -0,18 % -0,5 % 32 bps Dax 100 64 100 France 0,13 % -0,18 % 31 bps CAC 40 100 63 83 Italy 1,43 % 1,01 % 42 bps FTSE MIB 100 62 84 IGTA eJournal | Autumn 2020 | 12