Market Shifts and Opportunities: Unprecedented Times
The market at the start of August is rocked by a series of unusual and concerning events. Here’s the rundown:
1. Israel's Security Bunker: Reports suggest that Israel's Shin Bet security service has a fully operational underground bunker in Jerusalem, prepared to protect senior leaders during a war. This bunker, built nearly 20 years ago, can withstand various attacks and is connected to the Defense Ministry in Tel Aviv. This is in response to fears of attacks from Hezbollah and Iran.
2. Unwinding of carry trade: Japan's stock market, specifically the Nikkei 225, is set to record its largest two-day drop ever, even worse than the 1987 crash. And with the Yen strengthening significantly, borrowers now owe 10% more in USD terms over the past few weeks!
This creates a double-whammy for Yen borrowers:
- The amount you owe has increased
- The interest rate on your loan is higher
3. Cryptocurrency to the Goblintown: $Bitcoin (BTC.CC)$ has fallen by 22% this past week, with a 10% drop today. $Ethereum (ETH.CC)$ is down 31% for the week, with a 21% drop today.
4. Increased Military Stock Purchases: There's a noticeable trend of rising military stock purchases, though not fully confirmed. Stock like $Lockheed Martin (LMT.US)$ could see some bids from the market.
5. Federal Reserve Rate Cut Speculation: There are talks that the Federal Reserve might lower interest rates by half a percentage point next month to stabilize the market amid fears of a significant downturn in August.
6. Berkshire Hathaway’s Major Sell-Off: Warren Buffett’s $Berkshire Hathaway-A (BRK.A.US)$ has sold $75.5 billion worth of stock and halved its stake in Apple, now sitting on a record $276.9 billion in cash.
What do these events mean?
1. Nothing: It could be random events coinciding.
2. Market Turbulence: The market might be on the verge of significant trouble.
3. Geopolitical Tensions: There could be a looming global conflict involving the U.S., Iran, and Israel.
4. Recession Indicators: The long-anticipated recession might finally be here.
5. Global Economic Downturn: A global recession could be setting in after extensive money printing.
In any case, Teh Tarik Invest rule stays the same. Teh Tarik Invest leans 51% toward a bright future and 49% toward "Only the paranoid survive."
- Teh Tarik Invest
The stock market is filled with individuals who know the price of everything, but the value of nothing."
Embrace the power of quiet compounding. Focus on your long-term goals, invest wisely, and let your wealth grow silently over time.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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Thoughts on Malaysia & US markets while sipping a cup of hot teh tarik.
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