S&P 500 down 1.89% for the day on Friday, Bitcoin down 4.2% for the day, down 19% for the week

submitted by magnora7 from self.finance

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[–][deleted] 2 insightful - 1 fun2 insightful - 0 fun3 insightful - 1 fun -  (4 children)

Low GDP growth expectations of 3.8 to 2.5%, along with 7% inflation, will require a gradual interest rate increase to as much as .75% or 1% by the end of the year (rather than printing money). Inflation is at a 40-year high. Only crypto has taken a major hit. Other markets are relatively robust, even if overvalued, and should experience market corrections this year, but nothing that should cause alarm. It sucks, but it's not a sign of potential panic selling, IMO. The US has faced several periods with the similar numbers, and a much smaller market. And the dollar should be OK this year, thanks to supporting our Arab homies (rather than pumping more at home).

[–]magnora7[S] 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (3 children)

Market had one of the biggest crashes in a long time today, the Dow and S&P 500 are falling like a rock this last week. The "plunge protection team" is the only thing stopping the stockmarket from full on crashing right now. Saying "only crypto has taken a major hit" is going to be proven more and more false over the rest of this year, imo.

[–][deleted] 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (2 children)

Select 1y or 5y or max on this graph:

https://www.google.com/search?client=firefox-b-max&q=dow+graph

My point is that the long-term view is helpful in this case. The market is overvalued partially because of the foolish reduction of regulations several years ago.

And you posted your comment 3 hours ago, after the market rebounded today.

Thus the only currency that took a serious hit is crypto, and it remains down: https://coinmarketcap.com/

Select YTD or 1y, here:

https://coinmarketcap.com/currencies/bitcoin/

[–]magnora7[S] 2 insightful - 1 fun2 insightful - 0 fun3 insightful - 1 fun -  (1 child)

Yeah it plunged and then the plunge protection team saved it so it didn't close down for the day, but the volatility was extreme. Stocks will catch up with crypto soon enough, especially if the fed doesn't print more money and re-lower the lending rates back to 0%. The system has become hooked on free money and now it will have lot of trouble functioning without it.

[–][deleted] 2 insightful - 1 fun2 insightful - 0 fun3 insightful - 1 fun -  (0 children)

The system has become hooked on free money and now it will have lot of trouble functioning without it.

Seems so