Recently, the economic data for Europe was released, and the manufacturing PMI data in Europe, which I am most concerned about, is once again below 50. 50 is the dividing line in economics, below which it means that the manufacturing industry is shrinking. At present, the PMI in Europe has been below 50 for 18 consecutive months.
And that's not the worst. The economic locomotive of Europe is undoubtedly Germany, whose GDP has been negative for two consecutive quarters, that is, a recession in the economic sense. Generally speaking, a recession is accompanied by prices**, after all, purchasing power has deteriorated.
However, Germany's CPI has rebounded month-on-month for the third consecutive month, which means that inflation may return. It's going to be a very special time. We have seen deflation and stagflation, but this kind of CPI is still at a high level, and GDP starts to grow negatively, which is very rare and should be the most dangerous situation.
And that's not even the worst. The worst thing is that the whole of Europe and Germany are at an all-time high, and Germany has just hit an all-time high a few years ago, which is undoubtedly a huge breakdown.
Therefore, I believe that Europe is only one step away from entering the whole crisis, and this step is a heavy setback. At the moment, there are signs of this. Because Europe's ** follows the United States**, it has little to do with its own economic data.
But now that the U.S. stock market has entered 2024, it has also had a black start, and the Nasdaq index has been 5 consecutive days**, while Apple, the No. 1 U.S. stock market, has been downgraded by the well-known investment bank Barclays, which seems to mean the beginning of the bursting of the bubble in technology stocks.
Once the bubble bursts in technology stocks, the global financial markets will face very big risks.