Tip style
As fed cuts back on its future money printing the tide is going out in Nasdaq and especially crypto (Bitcoin)
BTC looks like it is teetering like Wylie coyote this am at 40,500 support (last support for bull run dating back 2 years) it will have some fits and starts but if that level is retested multiple times it will give way
If Nasdaq stays pressured and it should as long as fed keeps dreaming about raising rates and normalizing monetary policy next year ..the market will front run that idea until bitcoin finds itself lower than most Imagine .
The good news is this should create a buying opportunity in crypto later and stocks (if they actually fall ) because no central bank has normalized monetary policy (like the fed is pretending they will do later this year ) after the hall mark red flags of a fragile monetary system commence for years (Which of course is the monumental debt monetization of the last years) . Once a monetary system goes down the path of buying their own debt (debt monetization) its all over for normalizing the policy and not being dependent on kicking the can with continuous bubbles
These bubbles are noted for having historically stretchEd income to price ratios for homes and price to earnings multiples for stocks ...because if those bubbles aren’t reflated ..The system dies . That is elephant in room that won’t be said on TV so there isn’t a confidence run .
Educated media Economic personalities know and understand the long history of monetary systems Going back couple thousand years and their inherent fragility as the bodies of past systems are buried in history books , they know how political power has shifted as we’ve seen the rise and fall of the empires that had and (fought to keep the reserve currency’s ) Dutch , British , now American and how the clear signs of their failing Mark a countdown to a large scale change and period of unparalleled uncertainty.
Deep rooted economic and social upheaval (usually with the populations attention redirected at outside enemies in various ways ) . in the past these resulted in power changing hands from one to the next , in our current civilized times Where the influential class span the world ..their maybe a mutually beneficial and more sustainable transition to a More equitable multi country “fair” transition .
This maybe years away if the global central banks (almost all in the G7 nations ) who have engaged in monetizing the debt Are able to keep blowing asset bubbles without letting interest rates rise (no coincidence that almost all of Europe govt debt has negative interest rates ) so they stay afloat a little longer . The open secret that can’t be spoken on media , is that Not only is this as healthy and sustainable as daily heart attacks , there will have to be a way to refocus the worlds (populations attention) on anything , any future black swan , that keeps them from blaming those in charge when the system finally resets . (Could be a decade could be the next crisis) but the only way it’s many years is if continual successful bubbles reflate asset values , using anything possible to make this politically palatable and that would mean any 20-25% pullback in stocks will be met with central banks reversing their most recent attempt at slowing money printing which is shaking markets
back to snow
* oh and at some point in perpetual asset price reflations, Usually near the end market participants noticeably have a decreased confidence in paper promises (stocks , bonds ,) and clearly favor hard tangible assets that will reprice upwards if the country’s (fiat currency loses confidence)and the visible reflection of weakened confidence is a bond market that enters a bear market not induced by fed raising rates but investors demanding higher rates for holding currency risk . These things have happened in many Latin American counties over past decades .