Topic: Id like to say something about economy and markets about fear (Read 136 times)

That's the problem, many other communities in this industry boast that it's not really what's happening right now.

    Explaining what is happening in the market is not that easy to do because there are many underlying factors and sometimes it depends on the situation. Is there a big issue like what happened in LUNA and FTX that caused the market to crash which affected many investors honestly speaking.

I don't know what exactly are you trying to say with this long thread. It would be nice, if you try to summarize your thoughts in a few sentences.
Do you mean that there will be a bull market despite the interest hikes? Which market are you talking about? The stock market, the FOREX market or the crypto market? Your opinion is yours. We just have to wait until the end of 2023 and see whether or not your were right.
Statistics about the German economy are showing that Germany might be entering a small recession. The same news are coming from the USA.
You can't have a recession in the economy and bull runs on the financial markets at the same time. This doesn't make any sense.

It's important to keep in mind that while rate hikes can cause short-term market turbulence, they can also signal a healthy and stable economy, which can ultimately benefit investors in the long term. Additionally, while there may be a lot of money in the markets, it's important to remember that there are always risks and uncertainties that can impact investment outcomes.

I think the Central Bank is actually raising interest rates to keep inflation down. I don't want to think complicated or anything like that. because we have to know that during the Covid-19 pandemic the government continued to print money to distribute to the people at that time who were forced to stay at home (isolation/quarantine). and these steps are taken so that the flow of the economy continues even though the pandemic is hitting. and these steps are indeed effective.

but the problem happened afterwards. that is too much money circulating in the community so that it becomes one of the causes of inflation starting to occur. and the Central Bank is only trying to pull back the excess supply of circulating money by raising interest rates. so that people are interested in depositing their money in the bank. and this move is also considered pretty good so far. because the rate of inflation began to decline. so that gradually interest rates will be lowered little by little. But the impact of raising interest rates can indeed result in a recession or not.

but I think the economic conditions are now starting to recover. so I think the government is considered quite good in dealing with the current economic crisis. although maybe in some countries there are those that don't work. and it goes back to governance in the country itself. It is the level of corruption and the like that actually makes it difficult for a country to recover from an economic crisis.

Fiscal policies always target the middle class, as there are two classes, the rich and the poor, and these classes are not affected much by economic variables because the rich can afford or pay thousands on all taxes and economic obstacles, while the poor cannot do anything.
Consequently, many countries are trying to increase the size of the middle class and the floundering countries are the ones that have a fragile middle class and the majority are poor.
While for the individual, you have the choice either to try to be at the top of the middle class and thus closer to the rich, or to be poor.

I think im right not wrong

You're probably wrong. If there is a hike in interest rate, instead of having more capital, the opposite is probably true. Credit has a vital role in the business sector. Raising the interest rate means companies are discouraged to borrow money because the interest is high. As a result, finances are limited. Therefore, purchases and spending and investments are curbed. In other words, economic activities slow down. While it results in the prices of goods and services falling down, it could also mean businesses are not anymore facing a huge demand. Cutting of jobs might, therefore, ensue. That's why it is recommended to reduce spending and save money during these times.

I think hedge funds and the wealthy are having their finances be demolished and devalued like everyone else.

Elon Musk was in the news for having lost "$100 billion" in 2022.


There were other billionaires in the news post 2020 for having their entire fortunes wiped out trading stocks and other assets.

Even Warren Buffett was unhappy with stocks in 2022.


I think if you want to make a case for financial institutions not losing money post 2020.

What you would be describing is financial institutions who are known for hoarding large quantities of gold.

I thought you were only looking for serious investors, as you wrote in the other thread - but it seems that you have decided to share your enlightenment with ordinary mortals. I will repeat to you again that some people are always in a panic, and that those who know at least a little about how the market works do not have any problems in this or similar moments.

In fact, you haven't written anything useful, and most of it is incomprehensible to the majority who will read it anyway. I'll just say that your writing style reminds me of some trolls who appear from time to time and pretend to be "experts.

Most of us will stop reading in the middle or miss the main point that you are trying to communicate. Therefore, try to divide the topic into main headings and under them your thoughts.

Unfortunately, economics does not interact like chemistry or engineering laws, but is very variable.
Without a division of wealth, saving and investment, the economy will always play against you, and therefore if inflation occurs, you will be the loser, and the same thing if a recession occurs, your financial situation will be good in the normal situation of the market, but even then, when you have surplus money, you will either invest it in a useless investment or waste it in luxuries .

There is a lot fear right i do understood this becouse average person dont look behind the scenes.

I'd like to explain something here:
Central bank do rate hikes it Will make the people who borrowing money to pay higher % of their loans for example mortgage owners.

Now people like to correlate "rate hike situation " with bear Market and falling of the assets prices.
Yes If central bank and Fed start this process of "rate hikes" it Will make the prices fall like gold sp500 btc and crypto in the beginning becouse it's just profit taking and big sell off.

Now we the intrsest are higher coused by rate hikes.
What it also means is that we have even more capital on the markets the Lower we go the bigger will be the buying pressure.
In other words the money cost more the money is more expensive now the rich indviduals want to put their money to instutions and instutions Will pay them higher return becouse "rate hikes" coused the end of the cheap money.
Now the big hedge funds have more money then Ever before the rich indviduals now give out to banks and instutions their money becouse intrsets rates are higher.
Now the hedge funds and instutions have so much money so they will use that money to buy up all the assets for cheap.

So we have situation when we have bull Market in the economic downturn.
When everything closing down people getting laid off and business closures and people struggle paying bills and struggle with mortgage payments the sp500 and crypto do some rally.

Do not hope for the bear market there is just too much money on the Markets the buying pressure is too strong becouse big instutions buying now Even If they dont buy all one at time they do DCA but it has impact over the assets prices becouse the money they have it's huge ammount.

We have the situation in the world when most of the money is in the markets now and Market Will rally a lot we Will see many Green days and a lot shorts gets liqutated.
People try to guess the top becouse they been told we are on the bear Market but Actually we have bull Market and also the altcoins season.

And i say this things becouse the money Investment capital and btc and exchangers and Fed aswell the wall Street it's the topic what i know about.

I decided to enlight you guys and make some things clear becouse i read so much speculation what is not based on any of the fundamentals or facts.
I Do look for the facts and fundamentals