Crypto currency market has experienced a downturn in the performance for a week, bitcoin prices even fell to its lowest in 14 months, but for those who want to escape from the “money city” back to the “stock market” investors, the traditional stock market does not seem to intend to open arms to welcome them back.
Since the beginning of the stock market has been emptied
A lot of people the illusion that traditional stock market will have good earnings performance, but with this Tuesday (November 20th) once again fell, the Dow Jones industrial average, the S & P 500 index and the NASDAQ index has fallen, “since the beginning of the 2018, too horrible to look at” the stock market income has almost been emptied. For investors, they may now only can do is just to stay at home, sit in front of the computer, waiting for the weekend to another “black Friday”.
Facebook (Amazon), Amazon, apple and Google (Apple), Netflix (Google/Alphabet) is the five largest technology stocks of Listed Companies in the industry, often called “FAANG Big Five” — but now, these five companies stocks have been firmly in the bear city area. Compared to before the lasted 52 weeks of high price, the technology companies now stock prices fell more than 20%. From the beginning of the three quarter of this year, compared with Facebook, Amazon, apple, Netflix and Google market capitalization of five companies from the highest point of the year has shrunk by over $1.
Not only is FAANG big five, well-known chip maker NVIDIA (NVIDIA) and AMD stock performance is also not satisfactory, they said the main reason is the poor performance of encryption currency miners demand substantially reduced, in the past a lot of people will use their GPU chip to digging machine does not support the ASIC mining encryption currency, such as Monroe currency (XMR).
Dario Perkins (Dario Perkins) is the world’s leading independent political and economic research service provider TS Lombard managing director, he said in an interview with the CNBC:
“In the short term, the technology industry unexpectedly weak might have a significant impact on the global economy. From the view of macro environment protection Trump let investors feel nervous, past experience shows that these policies are wrong, even moderate trade barriers may also disrupt the complex global supply chain market. On the other hand, Facebook, Amazon, apple, Netflix and Google for the five tech giants spending might also undermine the United States stock market.”
After the 2017 bull market, stock and currency and encryption to “high risk assets”?
If you compare the drop percentage, encryption currency may have been hit more some. This week, the market sell-off resulted in crypto currency overall market value fell below $150 billion. In the encryption currency exchange on Coinbase bitcoin prices fell to $4218, its lowest level since October last year the first week.
Yi Rui investment (eToro) senior market analyst Marty Greenspan (Mati Greenspan) noted that has a certain correlation between the technology industry and the crypto currency market slump. He said:
“For the investors to sell technology stocks, you can not get rid of such a feeling — that is, the same problem also occurred in the encryption of money itself, and to a certain extent, there is a correlation between the two.”
Marty Greenspan further explained that he believes that the recent market trend may find the answer in a series of measures to rescue the financial crisis in 2008. He added:
“After the 2008 financial crisis, the central bank injected a lot of money trying to stabilize the financial system. Now, most of these funds have entered the markets, investors rarely research in this area, they do not know what is the value of the assets on logic. For high risk assets including encryption, money and technology stocks, 2017 is a special year, because there are a lot of the bailout inflows to these fields. But in 2018, we see the money back.”
These measures may make short-term speculators should recognize the reality, because they are not simply that a dollar investment today, tomorrow will be able to get two dollars. However, Marty Greenspan reminded investors should pay attention to long-term returns, because long-term returns more predictable. He concluded that:
“Take this into consideration, you will find that there is still a part of the 2008 financial crisis bailout funds are still looking for a foothold. Therefore, whenever the encryption technology, currency, or other market to the bottom, there are still a lot of money can be put into use. The only problem is that no one can tell you exactly what the so-called will appear at the bottom where. The only way to be sure that, if the market from now began to improve, will undoubtedly be a bullish signal, but you may need to wait longer to see a turnaround that day.”