Now that the Fed isn't pumping in liquidity, it's no longer a smooth ride up. It's not inconceivable for stocks to enter a period of high volatility. There's a lot of intense action on both sides, both for bears and bulls. Some say we're entering into a bear market. But other experts are talking about a period of more intense volatility instead. Kind of like in crypto, where you're not necessarily in a bear market or a recession, you're just in a wild rollercaster of volatility. We've already seen a lot of shaky action in stocks recently. And we've seen even blue chip stocks getting hit by that volatility. And now Netflix has dropped another 25% after hours down to $259 They have lost subscribers. But is the market really pricing a drop in subscribers as a problem in the future of Netflix, or is this high volatility due to the Fed printer overpumping stocks, and now that the liquidity isn't flowing in, stocks are starting to go more wild. You can blame the macros, War in Ukraine, the end of Covid, but at the end of the day, it was likely gonna happen anyway the minute the Fed were gonna stop their money machine. What does this mean for crypto? If stocks become increasingly as volatile as crypto, and not a place for stability, then stock traders might as well trade crypto too. Does this mean people will pull out of stocks and investments until things settle down? The real question to this, is where are they gonna put their money into instead? Inflation is high, so you can't leave it on the sideline too long. Other instruments have been going a little wild too. Real Estate prices have been going sky high. Conclusion: We may be entering into a period of wild prices across all investments. It's not just crypto, everything may be becoming a little more volatile. Strap yourself in. [link] [comments] |
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