Financial Markets in Turmoil 🩸: Causes and Solutions
For those wondering about the decline in cryptocurrencies, it’s not solely due to institutional and state sell-offs but mainly due to a correlation with traditional markets.
These markets have also experienced significant drops, such as the S&P 500 (-6.81%), NASDAQ (-12.38%), Bitcoin (-16.60%), Google ($GOOGL: -11%), Amazon ($AMZN: -10%), Microsoft ($MSFT: -9%), Nvidia ($NVDA: -11%), Apple ($AAPL: -10%), Meta ($META: -10%), and Tesla ($TSLA: -10%). This has surprised some observers.
However, it’s natural for market players to take profits after a long bullish period of over 600 days, reaching historical highs.
Furthermore, the market is anticipating a change in Fed policy scheduled for September 18, considering economic data and J. Powell's speech at the FOMC meeting on July 31.
Every adjustment in Fed policy is often accompanied by a significant correction, so the market is preparing for this possibility in advance.
As for me, I remain calm and continue to accumulate, preparing for the second bullish phase of the market, which should begin in about a month.
All of this is largely related to macroeconomic factors and geopolitical instability, particularly the increasing tension between Iran and Israel and the fragility of the U.S. economy, with an imminent risk of recession. The market is anticipating a potential crash due to the expected monetary policy shift.
In any case, these are short to medium-term movements. Personally, I remain very optimistic and believe it’s crucial to be patient. Only resilient investors will emerge victorious!
