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Every once in a while on Wall Street there's a "washout": a cataclysmic shift in the market that swaths of the investment community do not survive.
Wall Street is currently teetering on the edge of such an event. But why now?
@lopezlinette
explains. 👇
About two years ago, financial influencers were everywhere.
But now these influencers have gone quiet — and average investors are paying the price,
@thisisinsider
’s
@lopezlinette
writes. 👇
A side effect of making money easy to borrow, Lopez writes, was that all kinds of garbage ideas could get funding and all kinds of garbage companies could stay in business.
And that was before millions of Americans jumped into the market via Robinhood and other trading apps.
Awash with capital, companies — especially in tech — saw their valuations leave Earth's atmosphere and make a home somewhere on Saturn, Lopez says.
The CEO of Star Atlas says metaverse games will drive 'one of the largest mass migrations of new users into crypto.' He breaks down the economics of the 2 tokens driving the Solana-based game — and shares why they are undervalued.
Before the pandemic, the most pressing problem for central banks was the recovery from the financial crisis. The Federal Reserve kept interest rates historically low to encourage banks to give out loans and juice the economy.
One of the Fed's main jobs is to control how much money is sloshing around the economy.
Between late 2008 and mid-2014, it injected 3 trillion dollars into the system. At the same time, in an unprecedented move, it kept interest rates pegged at zero.
It also means that all those hot meme stocks, SPACs, and growth stories either need to prove their current business is worth those sky-high valuations, or be washed out with the market rout.
But now, the Fed is likely to raise interest rates multiple times in the coming year to fight inflation.
That means investors will start taking a closer look at how companies generate cold hard cash — not in 10 years, but over the next several quarters.
Welcome to Wall Street's summer from hell: a period of extreme volatility and uncertainty that will bring a near-biblical reckoning to markets.
@lopezlinette
explains what has Wall Street sweating. ⤵️
Crypto experts are awaiting a rather ominous-sounding event — "The Flippening."
The term refers to the hypothetical point where ether overtakes bitcoin. Some investors fear it could unsettle the crypto market. 👇
In a market bubble, it's easy to confuse opportunity for genius. But when the market tanks, a lot of those brilliant operators disperse, Lopez says.
And the market has certainly tanked, with a recession likely on the horizon.
We have a long way to fall, Lopez says, but this isn't like 2008 when the collapse of the economy pulled the stock market down.
This time the problem is the stock market and its unrealistic valuations.
The good news is, inflation aside, the real economy is looking strong, Lopez says. Wages are up, unemployment is down, and a receding pandemic should help clear clogged supply chains.
But Wall Street's masters of the universe face an extinction event.
Investors will soon come to find that few people are interested in a stock that could quadruple in five years but can't show how it will generate the cash to fund its business until then.
🐹 A hamster has been trading cryptocurrencies in a cage rigged to automatically buy and sell tokens since June.
Here's how it's outperforming the S&P 500. 👇
And this time, no one’s coming to save the stock market, Lopez says.
There are no more stimulus checks, no more Fed puts, and — based on the failure to pass the Build Back Better plan — no more major cash infusions coming from the federal government.
Shark Tank's Kevin O'Leary explains why he's buying the dip in bitcoin and ether — and says the collapse of risky tokens will help the crypto market in the long run
Vlad Tenev, the CEO of the stock-trading app
@RobinhoodApp
, used to be on financial TV all the time slinging his product. Now, Lopez says, no one talks about him or his company.
Lopez also points to Chamath Palihapitiya, the king of SPACs — a type of investment vehicle that went unused for years until it suddenly surged in popularity during the pandemic — who has been quietly selling off his supposed crown jewels.
Transport for London (
@TfL
) is going to crack down on ads for cryptocurrencies after meme token
@RealFlokiInu
's campaign flooded the city's travel system.
Here’s why critics are saying that these crypto ads are unethical. 👇
Let their silence be a lesson, Lopez says. When financial markets are minting not just money but celebrities, it's time to be more than skeptical. It's time to prepare for the kind of disaster that makes once great stock pickers look like pikers.
Two years ago, bitcoin accounted for almost 67% of the total crypto market. Today, that percentage has dropped to 45%, while ether has seen its market share rise from 8.5% to nearly 20% now.
I'm a crypto investor with more than 1 million TikTok followers. I swear by this 30-minute morning routine for making smart trades. (with
@MasonVersluis
)
After years of inflating, it's becoming clear that the "everything bubble" has burst.
Since the start of 2022, the S&P 500 has fallen by more than 18%, and Nasdaq is down almost 30%.
This isn't a short-term drawdown — it's a pivotal shift for markets.
Russia's economy could spiral into a depression under an EU oil embargo. An energy analyst breaks down why Moscow won't be able to rely on China and India to fill the gap.
A key bitcoin lightning network developer shares how he makes $4,500 a month just in fees from running a node. He and 3 other crypto experts lay out how to run profitable nodes.
A 'FinTok' star decided to buy tickets to see Dallas Mavericks with Dogecoin and Mark Cuban stepped in to help — here's what she told us about the experience
A teen crypto influencer who started by investing her pocket money into bitcoin says Gen Z could make crypto go mainstream - once they understand its benefits
David Einhorn says Chamath Palihapitiya and Elon Musk were 'the real jet fuel' for the GameStop short squeeze and that regulators have been defanged when it comes to policing markets
Actor Jim Carrey says he's deleting his Facebook page and dumping stock because the company 'profited' from Russian election meddling, and he wants you to join him
He argued that his SPAC push "democratizes access to high-growth companies." To say his SPAC companies have not done well since the market started falling would be an understatement — these companies are getting vaporized. 👇
The Vice Prime Minister of Ukraine says the country is accepting dogecoin donations and urges Elon Musk and other holders to help 'save lives from Russian invaders'
The most popular notion of our last rally was a bet that economic conditions would remain favorable to companies that didn't make money — that these firms could grow off debt and investment capital alone.
It's really never a good sign when you see celebrities hanging around the stock market, and during the bubble they were everywhere, pumping crypto and investing in SPACs.
“These people are not your friends,” Lopez writes.
BlackRock warns a global energy crisis and runaway inflation risks will force the Fed to 'slam the brakes' on the US economy — and the firm reveals which stocks can thrive amid the turmoil
Helene Meisler (
@hmeisler
) has worked in markets for 40 years and has written about them for 25.
Subscribe to
@thisisinsider
to see why she still updates 200 stocks a day by hand:
The Russia-Ukraine crisis has already rattled financial markets, and analysts say a full-blown war could send energy prices soaring — and even tip several economies into recession.
Here's what top Wall Street strategists are telling their clients. ⬇️
The cofounder of the cryptocurrency Tezos explains why traditional crypto will keep going strong despite the rise of government-backed digital currencies — and shares her best advice for getting started in crypto investing