Financials markets have become very fast discounting machine and cycles are shorter these days. Here is a thread covering 10 point case study to understand the same and way forward for markets. Retweet for wider reach (1/10) #stocks #cryptocurrecy #startups #bonds #Fed
In Markets, pendulum swings to the extreme with overvaluation/ optimistic thinking at one point to undervaluation/ panic/ pessimistic thinking at another point. The frequency of same has accelerated in the recent past (3/10) #stocks #cryptocurrecy #startups #fintechs #web3
As an example- Market positioning went from one extreme (Assuming fed wonβt be Hawkish) in Jan 2022 to another extreme ( assuming fed would continue to be Hawkish) within a span of 5 months and various markets/indices fell 25%-50% (4/10) #stocks #cryptocurrecy #startups #web3
At the end of June 2022, we had some signals of Inflation softening and Fed signalled to Pivot from its hawkish stand. That was turning point for the market. (5/10) #stocks #cryptocurrecy #startups #web3 #BTC #ETH #fintech #Blockchain #nifty50 #DowJones
But as usual, Market factored too much too soon with the recovery of 20%-30% across financial market in couple of months (6/10) #stocks #cryptocurrecy #startups #web3 #BTC #ETH #fintech #Blockchain #nifty50 #DowJones
However, latest inflation data indicates that inflation is still persisting at high levels as a result of which Fed indicated yesterday that they will continue to be Hawkish (7/10) #inflation #JacksonHole2022 #FederalReserve #Bond #hawkish
Thus, markets have got surprised again vis-Γ -vis its expectation built into the price and would need to get itself adjusted with these new expectation (8/10) #StockMarket #nifty50 #cryptocurrency #BTC #ETH #web3
As highlighted earlier this week, we are heading for risk off & highly volatile environment for the next 3 months and financial markets likely to readjust to latest datapoints/ Fed Pivot delay (9/10) #StockMarket #nifty50 #cryptocurrency #BTC #ETH
India has best macro environment in world & this leg of fall would likely be last leg downmove. Make sure to have strategy to emerge stronger in downmove (Keep dry powder) & deploy at opportunistic time to positioned for bull run (2023 onwards) in stocks, crypto & startup space
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