Slightly to my surprise, given that Asian markets fell overnight, the FTSE 100 has opened flat this morning.
So far, markets seem to have shrugged off the crypto collapse over the weekend.
I warned that was possible.
It does not mean tha the correction is not coming. I think that is inevitable.
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Around 25 years ago, I remember reading a piece written by Robin Angus of Personal Assets Trust that has rather stuck in my mind.
“…in markets such as these I am much more concerned about the risk of loss than I am about the risk of missing out on possible gains…suppose I have £1m. Whether it rises by 50% or falls by 50%, that sounds like the same percentage movement.
However in real life a 50% fall in value has much greater consequences than a 50% rise.
If my £1m rises to £1.5m I am certainly better off, but it is only a matter of degree. While I can live of £1.5m, I can also live off £1m, just about. However, if my £1m falls by 50% to £0.5m I can’t live off that. My whole way of life will have been changed significantly and for the worse. And can I get back to where I started, and have £1m again? Only if I double my money, which is very hard to do.”
He described what 98% of people feel.
Personification? Can a market shrug? It my be just trying to delay the pleasure to come.
At the margin, the weekend news was positive as Trump back pedalled on the latest tariffs that spooked the market.
However, for Dogecoin and other such nonsense there has been no bounce.
Markets can remain irrational longer than you can remain solvent.
Agreed
It’s worth pointing out the bubbles are largely caused by MMT advocates, such as yourself. With QE pouring money into the financial system with no concomitant increase in production inflation across assets has been considerable, including crypto, which suggests MMT and its advocates ought to confess they have been peddling myths for some time.
MMT is opposed to QE
You really ought to do your homework before writing here