I’ve been watching, half with dread and half with morbid curiosity, the approach of Bitcoin’s death cross.
Normally, frothy melt-ups and melt-downs like we’ve recently experienced in the SPAC and cryptocurrency markets are cause for serious concern. Often, these kinds of market actions are associated with the blow-off top of a bull market. Yet, although parts of the market are frothy and many stocks are at near all-time-high valuations, contagion has yet to spread to the broader market in any significant way.
Bullish investors are anticipating the next rally to new highs and simultaneously, bearish investors are wondering what’s…
‘Sean Spicer, our Press Secretary, gave … alternative facts.’ — Kellyanne Conway
‘Alternative facts’ have inflated the stock market throughout 2020 into arguably one of the largest bull traps in history. The government tells us to ignore obvious signs the world may never achieve global herd immunity. Central Banks tell us to ignore obvious signs of rapidly increasing inflation. CNBC says all is well, a new bull market is upon us, and we should simply ignore our lying eyes.
No wonder Reddit threads, YouTubers, and even professional money managers keep telling us to ignore obvious signs of sky-high valuations…
People are getting vaccinated, the economy is re-opening, and the world is hopefully getting back to normal soon. This should be great for stocks, right?
Although stocks, real estate, and cryptocurrencies have all benefited immeasurably from stimulus checks, QE to infinity, and interest rates locked near zero, true price discovery is currently next to impossible. Too many investors remain complacent — this is dangerous.
The problem is, as we continue getting more and more good economic news, lawmakers are going to become more and more reluctant to continue pandemic stimulus spending and the Federal Reserve is going…
‘Fortune favors the bold’ – Virgil
Cryptocurrencies are currently experiencing a kind of modern-day gold rush. Many popular cryptocurrencies and NFTs (non-fungible tokens) have risen hundreds and even thousands of percent in only a matter of months. For example, in only 6 months, Dogecoin (mentioned by Elon Musk) remains up over 12,000% even after dropping nearly 50% from its all-time high.
Blockchain, the technology cryptocurrencies are based on, appears to already be displacing many older, outdated business models with cheaper, faster, more secure business transactions. …
Twice before in history, worldwide markets have experienced a sharp, deep, unexpected sell-off (like we experience in 2020), a rally, and finally a much deeper, multi-year bear market and economic depression.
The world appears to be on the precipice again.
Governments and central banks are trying to spend their way out of the current recession without triggering runaway inflation. Based on recent stock market action, it appears investors don’t believe the balancing act is going well.
Today, we will explore the financial shocks that preceded the two worst bear markets of all time and what the 2020 stock market…
If you’ve been thinking;
After the pandemic, I really don’t want to go back to the office full time. Life is too short. I’ve got to make a major change – do something meaningful with my life ’ …
… you’re not alone.
According to Kevin Roose at the New York Times, a combination of corporate burn-out, stay-at-home-savings, easy stock market money, and stories about fortunes being made in NFTs, cryptocurrency, and meme stocks are making Millenials rethink their life choices.
As Kevin summarized so succinctly;
You can’t take anything away from Elon Musk. Although he didn’t found Tesla or even come up with the idea for an electric vehicle, Elon Musk has nearly singlehandedly taken electric vehicles (EVs) from the realm of science fiction to science fact. In another couple of decades (or less), Tesla will go down in history as the company that killed the internal combustion engine (ICE).
After peaking in January, many of the most volatile technology stocks have sold off sharply. Many investors are wondering if this might be a good time to load up on technology names. It could be, but we haven’t seen mega-cap technology sell-off much at all and in fact, many tech names are at or near all-time highs.
The problem is, with the pandemic starting to wane, many analysts and economists expect some sort of correction sometime in 2021. History tells us if we do experience a serious correction, mega-cap is likely to sell off sharply, as it always has…
We’ve been told the 2020 pandemic has caused incredible, pent-up consumer demand. Naturally, if this is true we should assume this consumer demand will result in an economic explosion as people go back to their natural spending habits – post-vaccination. Many experts support this idea by pointing to how the 1918 Spanish Flu pandemic created incredible consumer demand and how the economy exploded for a decade after that previous pandemic ended.
However, thoughtful investors can’t be faulted for asking themselves, ‘How is it that the world economy is stronger in 2021 than it was before the pandemic?’. …
Most economists now believe the economy will explode in the second half of 2021 as more and more people receive the vaccination. However, economists and analysts are split on what this means for the stock market.
The Federal Reserve says the US economy is expected to grow faster than originally forecast, and inflation ‘will be transitory’ and Goldman Sachs says ‘we’re not in a bubble and investors should just relax’. However, plenty of economists are pointing out serious warning signs like over-inflated stock prices and pockets of potentially stock market-damaging inflation. Larry Summers, the former Under Secretary of the…
Edward Iftody is a Communication Coach, author of Surviving Work, a veteran of the Canadian fin-tech industry and a blockchain enthusiast.