Why are you in such a mess? From technology stocks to palladium to cryptocurrencies

As the Fed tightens monetary policy, the call has fueled a bubble of risky assets, from former US tech stocks to palladium to cryptocurrencies. Economists, on the other hand, say Fed policy is slowing. It seems that the harbinger of the event is only a harbinger of the event.

"The Fed slowdown will continue to affect the most risk averse markets, including technology and small-scale commodities, especially energy. Price shocks, which raise interest rates and interest rates that cause losses, ”Bloomberg told Bloomberg. The investment is driven by cryptocurrencies, said Jay Hatfield, COO of Infrastructure Capital Advisors.

The sandals finally seem to have landed on people who have feared for more than 10 years that the “great water release” will create a global buzz. Measuring the pressure of technological devices will be more difficult to prove in an environment of rising interest rates. According to Sundial Capital Research, about 4 out of 10 companies in the Nasdaq composite index SH.000008 lost market value to their highest in 52 weeks. Half and most of the products in their market bear the biggest bears since the dot-com crash.

Bitcoin, the largest cryptocurrency by market cap, has fallen sharply in recent days and is currently trading at $41,000, down 40% from its three-month high Try $40,000 for the first time since September.

Already last August, Richard Bernstein, member of the Hall of Fame for American "institutional investors", declared that the market could be "the biggest bubble of his career". Long-term assets such as commodities, bitcoin, and stock markets have long sounded the alarm bells. Legendary investor Jeremy Grantham previously pointed out that the commodity and cryptocurrency bubble is worse than it was in 2000, suggesting the bubble will burst in the fall.

Longtime Stock God Buffett partner Charlie Munger also told a meeting in December that some of the stock market's assets had been priced too high and the place was now "crazy" rather than the dotcom bubble. of the late 1990s. Cryptocurrency was never created.

Todd Rosenbluth, ETF Research Director at CFRA Research at CFRA. However, he does not believe that one of the downsides in business mentioned above is the bursting of a bubble, claiming that "we are in the middle of this pattern and it will or it will not withdraw" .

But recent reports from financial analysts suggest growth will pick up, leading to a deeper bubble economy. Financial analysts, including former U.S. Treasury Secretary Lawrence Summers, former White House chief of staff Jason Furman, former chief economist John Taylor and others Glenn Hubbard, president of the Chamber of Commerce of the White House, presented Fed policy at its annual meeting of the American Economic Association, including The Fed is behind inflation and needs to be strengthened.

Summers said the Fed has been slow to respond to the risk of a US inflation crash, once again predicting that "interest rates will rise next year and a half due to the fact that the equilibrium between supply and needs is clear ". He said last October that the Fed's policy was to take control of the country in the face of uncertainty, but this time the Fed has not abandoned its monetary policy as there are signs of recovery and inflation is out of control and difficult. Solution ..

Furman said he expects the core Consumer Price Index (CPI) to remain high at an average of 3.2% this year, better than the 2.7% expected at the meeting. from the Fed in December. year. Taylor estimates that US government revenues should be between 3% and 6% instead of zero today. With the recent rise in US Treasury yields, "more to come" could happen. Hubbard also questioned whether Fed lawmakers' expectations of a 25 point rate hike this year would be enough, warning of a crisis over rents, rents and labor money.

Last month, Mark Kiesel, director of credit at Global Investment Management Corporation (PIMCO), said the Fed was not working fast enough to deal with the crisis. Rising prices and investors should be wary of "stops". ; Speeding up the way the Fed protects inflation will be the biggest risk for financial companies next year.

Following the announcement of a US nonfarm payrolls review in December, the economy expects the Fed to hike rates more than 90% in March and a growing number of banks Wall Street plan to raise rates up to four times more. year. Moreover, the differences in Fed Funds forward rates show that investors expect more than 90% of the time the Fed will raise rates at its March meeting.