In today’s briefing:
- The Crypto Contagion Threat to the Stock Market
- The Commodity Canary in the Coalmine Is Falling Over
The Crypto Contagion Threat to the Stock Market
- The recent crypto meltdown was a disturbing indicator of bearish risk appetite.
- Signs of possible stabilization in crypto assets and speculative growth stocks are pointing to an imminent equity relief rally.
- Investment-Oriented accounts should be cautiously positioned and sell into market strength. Traders can try to position for a relief rally, but don’t overstay the party.
The Commodity Canary in the Coalmine Is Falling Over
- Weakness in commodity and equity prices is signaling a global slowdown and possible recession.
- Conventional wisdom calls for cautiousness in portfolio positioning, which is sensible.
- However, investors should be prepared for good news, either in the form of a cessation in Russia-Ukraine hostilities, or a turn in the Fed’s tightening policy.
Before it’s here, it’s on Smartkarma
