Cryptocurrency Sector Plunges 45% in 11 Days. After a very quiet summer, the Cryptocurrency Sector has suffered yet another Waterfall Decline this year. According to Coin Market Cap (https://coinmarketcap.com/charts/), cryptocurrencies have endured 4 of these horrific drops in the last 11 months as follows: 45% in 10 days from January 7th ($831 Billion) to January […]
The Dow Jones Is Price Weighted, Giving Certain Components Disproportionate Influence. The Dow Jones Industrial Average (Dow) is the oldest and most prestigious stock index. It’s methodology of calculation is also one of the strangest. While nearly all indexes are market capitalization weighted, the Dow is “Price” weighted. Price weighting means that a $30 component […]
US Stock Markets Valuations Exceed 40% of World Total. According to website Seeking Alpha, the valuation of the United States stock markets exceeds 40% of the entire world (https://seekingalpha.com/article/4202768-u-s-percent-world-stock-market-cap-tops-40-percent). They compared that to the market capitalizations as they stood on the recent election day in 2018. Not surprisingly, the United States share of world equity […]
Bitcoin Wipeouts Have Been Frequent. While Bitcoin (BTC), along with the entire Cryptocurrency Sector, has suffered massive declines this year, large drawdowns have occurred regularly (https://www.ccn.com/bitcoin-crash-the-history-of-bubble-bursts/). At its current price of $4500, BTC has lost 82% from its peak last December. Other large capitalization Cryptocurrencies have suffered similar fates. Ethereum (ETH) has lost 91%, […]
Bull Vs. Bear Debate Continues. As the major stock market indexes plunged during most of October, fear began to grip Wall Street. On October 29th, the intraday trading range for the stodgy Dow Jones Industrial Average was nearly 1000 points. The lows lasted a fraction of a second, however. Within the next 24 hours, the […]
Crude Oil in Record Setting Plunge. Just two weeks ago, a barrel of West Texas Intermediate Crude Oil (WTIC) fetched $75, a new multi-year high. Today, that same barrel trades at just above $55, a loss of 27%. This price collapse in Oil was the largest in that short of a time period in […]
Is the 2018 Cryptocurrency Collapse Finally Over? 2018 has not been a kind year to Cryptocurrencies nor their legions of rabid fans. After reaching a Peak Total Market Capitalization of about $825 Billion on January 5th, 2018, the Cryptocurrency Sector tumbled to the $190 Billion level by mid-September (https://coinmarketcap.com/charts/). The loss of 77% in just […]
How Much Are Trade Wars Hurting So Far? The topic of Trade Wars is much less complicated than it may at first appear. A thorough examination of the background on Global Trade and how it affects the US Economy can be found here: “Can Anyone Win A Trade War?” (https://markonomics101.com/2018/07/09/can-anyone-win-a-trade-war/). Trade Wars became real about […]
Signs of Inflation Rapidly Vanish. For the 12 months ended September, 2018, the Consumer Price Index (CPI) was reported to be increasing at an annual rate of 2.3% (https://www.bls.gov/cpi/). The CPI is the “official” measure of how much more it costs an individual each year to maintain a consistent standard of living. Unfortunately, the CPI […]
High Intraday Volatility Makes for Treacherous Trading. The last two weeks of stock market trading have made for great “theatre” but not much else. A terrific spectator event was the 1000 point intraday trading range in the Dow Jones Industrial Average (Dow) on Monday, October 29th, 2018. Eerily, exactly 91 years earlier, the Dow was […]
