Great Recession Fractal - This time is different?
Greetings everyone. Check out my chart comparison of the period just prior to the stock market meltdown (on bottom) to where we are now here in 2022. Looks awfully similar to me. All kind of voices screaming don't fight the FED this decade plus long bull market.
Now with the FED raising interest rates leading to demand destruction with the intent of combating inflation; those same voices believe they are bluffing. Capital from Europe and Japan is flooding into the dollar, not crypto and equities.
If this plays out the DJI is likely enough to revisit the flu lows ($18K) of 1st QTR 2020 and BTC heading to $18-$20K on it's macro Wave 4.
Cash will be king during this short term deflationary period until they print more stimulus, which I predict will be close to the mid term US elections.
Now with the FED raising interest rates leading to demand destruction with the intent of combating inflation; those same voices believe they are bluffing. Capital from Europe and Japan is flooding into the dollar, not crypto and equities.
If this plays out the DJI is likely enough to revisit the flu lows ($18K) of 1st QTR 2020 and BTC heading to $18-$20K on it's macro Wave 4.
Cash will be king during this short term deflationary period until they print more stimulus, which I predict will be close to the mid term US elections.
For all those new investors out there not old enough to remember what happened after that 200 DMA rejection, here's what followed in the months afterward.