Why the imminent stock market crash will skyrocket crypto!
Introduction
I usually post crypto technical analysis. However, today i would like to express some thoughts about fundamentals. Long story short, i believe that a huge international market crash is imminent, and this will lead huge amounts of money out of stocks and into crypto, sending prices to the moon.
Facts
In recent weeks, the nervousness of international markets has been evident since the mini-crash of the first week of February. This confirms those who believe that both the markets and the international economy have entered a crucial turning point that is likely to end up in a grand crash ...
Optimists insist that there is no negative sign from the fundamentals of both macroeconomics and business profits. That's exactly how it is.
But people in the markets, especially those who count decades of experience, remember that fundamentals usually record the problem only when the stock prices have already scratched the bottom ...
After a 9-year climb without a substantial correction, there is no doubt that markets are ripe to fix this. Zero interest rates and quantitative easings can just artificially extend the upward cycle, delay the time of the correction, and increase the depth and intensity of the fall that will follow.
The key question for the next market crash is what will be the cause and what will be the "center of the earthquake".
If in the 2000 crash the focus were dot.coms, and in the crash of 2008 it was subprime loans and banks, what will be the next?
Signs were obvious before the two previous crashes, but they were accepted as causes only afterwards.
This has to do with the way human beings perceive reality.
There is an interesting experiment of social psychology that proves that we see only what we have decided to focus on, and not everything that happens in the wider realm of reality.
See (google): The experiment of the invisible gorilla ..
The pension funds' problem
It is known that most of the money invested and circulating in the international markets comes from pension funds and the likes.
Zero and negative interest rates on funds that are required to have 75% in fixed yield securities mean negative returns and inability to pay the pensions provided by the contracts they have signed.
This has forced them to take a bigger risk with the remaining 25% on the stock markets, which they have inflated like a balloon...
If the stock markets fall, the "black holes" will also be revealed from the zero or negative rates.
So:
a) The aging West's pension system is therefore the weakest link ...
b) State debt is another weak link ... State debt is easily linked to both the problems of the insurance funds and the banks (private and state). We saw it in the recent crisis ...
If Central Banks respond with new quantitative easing programs, this will lead to a further loss of confidence in the monetary system.
Conclusion
If 2018 does not look like 2008 for the stock markets, it has all the conditions to be worse ... and if it is not 2018 it will be 2019 for sure...
This will create new fields of glory for cryptocurrencies... Especially the major ones.
Investors will dump stocks, and will buy gold and crypto.
Bitcoin, ethereum, xrp (ripple), litecoin and lots of other coins will soon visit the moon!
Tik tok, tik tok, tik tok... Fasten your seatbelts!
About me
You can also find me on Twitter:
https://twitter.com/CryptoGreek77
About me: Introduceyourself Post
Legal Disclaimer: This is not advice nor recommendation to either buy or sell anything! Just my opinions that I like to share with you!
Excuse me for my english.. It's not my mother language :-)
I know there are many mistakes but i'll try to improve this.
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