In this video, the presenter discusses the current state of the stock market, which is experiencing a downturn, as well as its potential impact on the crypto market and the larger macro environment. They note that some companies are experiencing significant losses, including Target, which dropped 25% due to supply chain troubles and higher fuel costs. The presenter also discusses the prevailing fear in the market and how investors should use this opportunity to accumulate. They mention Moomoo as a platform for buying stocks and offer a bonus for signing up using their link.
The Stock Market is Being Smashed – What Does it Mean for Crypto?
The stock market is down and there’s a lot of pain throughout the market. While the crypto market is down as well, it’s not as bad as the stock market. In this article, we’ll take a closer look at what’s happening and how it ties into crypto and the macro environment.
The Stock Market
The Nasdaq is down 2.7% and some companies are getting destroyed. Companies have held up really well over the last few months when the market downturned. If you look at the last 30 days, the market has gotten really bad. Retail stocks like Walmart and Amazon are down 16% and 25% respectively. Target sank 25% today after getting hit by supply chain troubles, higher fuel costs, and lower than expected sales of discretionary merchandise.
The American Consumer
We keep being told that the American consumer is strong. However, recent falls in companies like Walmart and Target show that maybe the consumer isn’t as strong as we think. The higher inflation and fewer stimulus checks may be causing the decline in spending.
Fear in the Market
There is a lot of fear in the market right now, which is causing companies to trade at a discount to net cash. This is happening at a rate not seen since 1999. The fear is also reflected in crypto, where we are at an eight or nine on the fear and greed index.
The Fed and Interest Rates
The Fed has been clear that they’re going to continuously raise rates by about 0.5% for the next meeting and beyond. However, they will bring it back down to a quarter point after that. The US has a massive debt problem, which makes it hard to pay off when rates are raised. The Fed may want to change course before the elections due to the fear and uncertainty this causes.
Crypto and the Stock Market
A lot of high-earning tech companies have hit their lows, and it’s possible that the market may start to turn towards the second half of the year. When this happens, crypto may also start to pump up. This is a great time to accumulate as much as possible.
Moomoo is a great platform to buy stocks. It provides a wealth of information on specific stocks, including quotes, news, short sell analysis, technical and fundamental indicators, and analysts’ target prices. Furthermore, it allows you to examine the ETFs that hold it in the percentage changes recently, all in one place.
The stock market and crypto market are down. While there is a lot of fear and uncertainty, it’s a great time to accumulate as much as possible. Platforms like Moomoo make it easier to access information about specific stocks. In the long run, it’s possible that crypto may start to pump up when the stock market turns around.