April 13, 2023
- Small cap stocks took the hardest hit
- S&P 500 is up which shows that people are bullish on the market; they are expecting rate hikes to end.
- Tech stocks are overvalued and may be benefitting from the bullish sentiment as well.
- The US dollar is weakening due to rate hikes and the continued inflation.
- BTC & ETH have risen: TradFi phenomena don’t affect cryptocurrencies nearly as much. Cryptos are following their own market dynamics.
Though inflation is being positively affected by the FED’s rate hikes, it is still growing. What most don’t realize is that the Fed must prescribe a recession. We expect to see continued rate hikes for the rest of the year. Cryptos on the other hand are more uncorrelated with traditional markets. What we are seeing with stocks doesn’t necessarily follow in the crypto-verse. This can be used to one’s advantage in portfolio management for continued growth and mitigated losses.
The Consumer Price Index is a fast moving measure of the broad inflation rate in the US economy.
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