1/
The US market's rigged.
It'll go way higher until the entire United States collapse.
You're better off being a perma-bull than a perma-bear.
#SPX #NDX #IWM #BTC #ETH 🧵
The US market's rigged.
It'll go way higher until the entire United States collapse.
You're better off being a perma-bull than a perma-bear.
#SPX #NDX #IWM #BTC #ETH 🧵
2/
They have forced liquidity into bonds and equities since the 70’s.
1971 - Nixon took us off gold standard, forcing money to flow into bonds and equities
1978 - 401K was created. Companies no longer offer pension, forcing workers to invest in volatile market for retirement
They have forced liquidity into bonds and equities since the 70’s.
1971 - Nixon took us off gold standard, forcing money to flow into bonds and equities
1978 - 401K was created. Companies no longer offer pension, forcing workers to invest in volatile market for retirement
3/
Because our assets and retirements are tied to the market, and because of rising national debt from irresponsible spending, we have no choice but to print money to prop up the system and keep us happy, while reducing rate to slow down national debt from going out of control.
Because our assets and retirements are tied to the market, and because of rising national debt from irresponsible spending, we have no choice but to print money to prop up the system and keep us happy, while reducing rate to slow down national debt from going out of control.
4/
1981 – Peak Fed rate. Rate has been plummeting ever since.
2009 – For the first time, the Fed dropped rate to 0.
They have had a hard time raising rates above 2.5% since. Politicians and the national debt can’t handle rates higher than that.
1981 – Peak Fed rate. Rate has been plummeting ever since.
2009 – For the first time, the Fed dropped rate to 0.
They have had a hard time raising rates above 2.5% since. Politicians and the national debt can’t handle rates higher than that.
5/
Many look to the Fed to raise rates and aggressive quantitative tightening to fight inflation. Truth is, they can’t do that without breaking something. Our national debt has grown exponentially since 1970’s during the Volcker years when they could afford raising rates to 20%.
Many look to the Fed to raise rates and aggressive quantitative tightening to fight inflation. Truth is, they can’t do that without breaking something. Our national debt has grown exponentially since 1970’s during the Volcker years when they could afford raising rates to 20%.
6/
Many argue that inflation may not have anything to do with the Fed’s action anyway, but due to cheap goods from China throughout 1980’s and 1990’s when Deng Xiaoping opened up China.
Many argue that inflation may not have anything to do with the Fed’s action anyway, but due to cheap goods from China throughout 1980’s and 1990’s when Deng Xiaoping opened up China.
7/ Since then, our globalized economy has continuously exploit the developing world for cheap goods, and inflation has not been a problem since.
8/
The current inflationary environment has to do with disrupted global supply chain issues, as well as excessive amounts of quantitative easing. Quantitative easing is coming to a halt…
The current inflationary environment has to do with disrupted global supply chain issues, as well as excessive amounts of quantitative easing. Quantitative easing is coming to a halt…
9/ As the supply chain improves with COVID behind us, and as we realized that we may have over-speculated the impact of the Ukraine-Russia war in commodities, commodity prices have been plummeting.
https://twitter.com/AndreasSteno/status/1554134868250054656?s=20&t=-BlaRucj-KGDuGcULLu3rg
10/
This is not the 1970’s. Globalization has made supply chain tremendously more efficient, and inflation pressure is unlikely to sustain for years like the pundits fear.
This is not the 1970’s. Globalization has made supply chain tremendously more efficient, and inflation pressure is unlikely to sustain for years like the pundits fear.
11/
As inflation decreases, the US government will continue to have irresponsible spending, and the Fed will be forced to do quantitative easing and cut rates. There will always be more liquidity being pumped into the system. 401K needs to grow, so politicians get votes.
As inflation decreases, the US government will continue to have irresponsible spending, and the Fed will be forced to do quantitative easing and cut rates. There will always be more liquidity being pumped into the system. 401K needs to grow, so politicians get votes.
12/ If you are to invest in the US market, the high beta asset is going to be #Bitcoin, followed closely by #Ethereum. Even if you don’t believe in the adaption, use cases, and narratives of BTC and ETH, they are both here to stay and where liquidity to flow into.
13/ Money also likely flowing back into equities, as “valuation fears” prove to be silly and overdone. Despite record inflation this quarter, companies are still reporting respectable earnings. The valuation of US stocks are still at multi-year low, especially small and mid caps.
14/ As I said, the US market's rigged to the upside.
It'll go way higher until the entire United States collapse.
In the long run, buying beats not buying.
It seems to be a good place to buy now, as most retails are bearish.
It'll go way higher until the entire United States collapse.
In the long run, buying beats not buying.
It seems to be a good place to buy now, as most retails are bearish.
15/ By the time when you see twitter posts saying "one more low", "this is one of the biggest shorts I'm doing", these retails are likely too late to the bearish game.
The market likely to go higher until you are all done with your bearish talk and stop shorting.
The market likely to go higher until you are all done with your bearish talk and stop shorting.
16/
The trend is your friend.
Bull trend with #NASDAQ #QQQ
Bear trend with 10 year yield
Don't listen to me. Check out the charts yourself. Make your own decision.
Not financial advice.
#SPX #NDX #IWM #BTC #ETH 🧵
/fin
The trend is your friend.
Bull trend with #NASDAQ #QQQ
Bear trend with 10 year yield
Don't listen to me. Check out the charts yourself. Make your own decision.
Not financial advice.
#SPX #NDX #IWM #BTC #ETH 🧵
/fin
https://twitter.com/cryptocantoncat/status/1555603703054442496?s=20
P.S. I'll gladly be wrong, if there's another leg down.
I would get to accumulate at lower prices for longer.
It will go back up.
Bulls will always win in the end, as long as we keep investing and not get scared off when the NASDAQ is -34% from the highs.
The system is rigged.
I would get to accumulate at lower prices for longer.
It will go back up.
Bulls will always win in the end, as long as we keep investing and not get scared off when the NASDAQ is -34% from the highs.
The system is rigged.
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