As of I write this, the Dow has already turned red, not +400 jump or rally as initially we saw, which makes complete sense.
There is no another esquizofrenic rally here. I have no idea how the market has remained "protected" in the last 12 months and not crashed knowing that the only proven theory that we know to control the inflation, created by an epic QE, is to QT epically. The balance sheet of the FED is still unbelievably high. They have to take all those trillions out of the market. There is no other way.
You think those trillions taken out would result in a tiny impact as we have seen in a market called crypto or in meme stocks losing their few billion valuations? No one cares!
No. The wipeout of these trillions USD from the market implies a washout of the REAL ASSET values. Your property, your neighbour's pension account, your fancy coffee roasters shops, your fancy lifestyle (people are still travelling across all continents like there is no tomorrow) , etc... back to a recession/crisis era as we should because economy moves in cycle. I know no one here want to go through a crisis, but this is life, be prepared.
There will be a wipeout of the wealth as we know right now. This is a painful path. There too many millionaires and billionaires made in 2020,2021. We will see a clean-up of 80% of these profiles. It has to happen. All these startups "founders" who have been lecturing us in LinkedIn and Podcasts about how to be stoic, beat life and overperform!, thanks for the advice, now the bubble is over, your share based compensation is worths nothing! (You know that Stripe, the biggest Unicorn ever, had to raise funds to take the hit related to the SBC... and Stripe is a very succesful company...imagine)
It doesn't matter how intraday looks in Dow, SP or DAX, this is going down slowly. week by week, month by month. Ladies and gentlemen, we are cleaning USD from the market.
Submitted March 13, 2023 at 06:11AM by JournalistFew2794 https://ift.tt/8KiHPlY
