We all know that the market is working with free money; easy money that feeds numbers and does not really reflect the existence of a healthy supply and a demand that responds for it. What we are seeing with the Nasqad index is not coincidence, it is simply the answer to that false appreciation that we have of generating money quickly, concentrating our confidence in a technological market that is dominating the world and that is too big to fall.
The truth is that this setback shows that when the market wants to correct, it does so in a crude way and without time to ask for a pause. The movement of this technological whale, SoftBank Group, closing its long positions and drifting all these positions that many investors managed under leverage and marging, create that downward pressure resulting in a decline in shares of the big companies in the field tech like Tesla, Apple or Facebook. The truth is that they trusted in the excessive money that the government injected into the market. What was expected of this type of behavior.
The truth is that these actions were very overvalued, they may even be, but as we are living today, with this new normal that guides our lives, a lot has changed, as I have said in other articles, the covid-19 only attenuated conditions that were already in a situation of change. The labor field has created a stronger dependence on technologies, especially the telecommunications and information technology sector.
There are fundamentals, even though it can be expensive, much of this technology will have to adapt to the new financial reality of many, but see what Apple does to stay in the market. Even so, growth is a clear fact, perhaps not as slow as we think, now with this second wave of the pandemic, the economic recovery will be slow.
History tends to repeat itself and that is why we must learn from it; The answer to this can be marked with the beginning of digital money, in all its forms, and this is another pillar by which technologies will once again dominate the market, whether or not they are inflated by the paper they print with permission they print. from the FED.
Of course it is important to indicate that this article is free of palangrism.
Most time I always wonder that government needs to be blamed at times for the market fall due to their excessive pumping and injecting of money to the economy market
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Good article, from my point of view the markets create bubbles is normal that cycle, only the states of dictatorial court are directly guilty of the evils in their economies.
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Great article, the pandemic has of course resulted in a great impact of having more technological solutions, we now know better that technology is here to stay and there will always be a great improvement in that field.
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Extraordinary article related to the new technological bubble, this aspect spreads in any field related to the global market, where, as you express us:
Great article friend thanks for sharing your knowledge with all of us. Successes.
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