03.07.2022
Chicago 11, Melborne City, USA
Trading robots

Wall Street Veteran Sees U.S. Economy Collapse By Investing.com

Veteran Wall Street investor and notorious BTC bull, Galaxy Digital crypto bank CEO Michael Novogratz is not particularly optimistic about the US economy, which he says is headed for a significant downturn with the possibility of a “rapid recession,” Market Watch writes.

“The economy will collapse,” Novogratz said in an interview on Wednesday. “We are in for a very fast recession, and it shows in many ways.”

The interview was done before the US Federal Reserve decided on the biggest interest rate hike in 2 decades.

“The housing market is starting to shrink. There are layoffs in many industries.”

As part of its efforts to bring inflation under control, which is hovering near a 40-year high, the Fed on Wednesday decided to raise the federal funds rate in a range of 1.5% to 1.75%. It was the largest increase in the discount rate by the central bank since November 1994.

Before the Fed announced its decision, Novogratz suggested, and as it turned out, quite rightly, that the central bank would raise interest rates by 75 basis points and that the market would rise on the news. He also predicted that the stock would sell off in the coming days.

According to the investor, now is the threshold of the moment when the bubble will burst: he meant record soaring prices for luxury Swiss watches and other valuable assets.

So far, Novogratz’s forecast has come true: the Dow Jones Industrial Average has risen more than 300 points, or 1%, after the Fed meeting ended and the press conference of its head Jerome Powell began. The S&P 500 rose nearly 55 points, or 1.5%. The Nasdaq outperformed both indexes, gaining 2.5%.

On Tuesday, Novogratz drew parallels between the collapse of the highly leveraged LTCM fund in 1998 and the current collapse of assets such as bitcoin and ethereum. The collapse of Long Term Capital Management shocked the global financial market and ultimately required a multi-billion dollar bailout from Wall Street banks.

— Market Watch materials were used in the preparation

Follow our news on social networks: Telegram, “In contact with” and “Odnoklassniki”.

administrator
Helped investors place more than 500 million rubles. and over $200,000 in stock market instruments. Developed over 60 investment strategies. Experience in Forex - Basic and Series 1.0. Broker-dealer activity. The purpose of creating the fx-guidance website is to share with you My knowledge, experience and transfer my best practices on the topic of INVESTING IN THE STOCK MARKET, so I want to start with a FREE technical analysis course, thanks to which you will receive:✅Basic technical analysis system used by prof. investors ✅Learn to find the perfect entry and exit points ✅Begin to see long-term trends on the chart and understand the likelihood of further price movement

    Leave feedback about this

    • Quality
    • Price
    • Service

    PROS

    +
    Add Field

    CONS

    +
    Add Field
    Choose Image
    Choose Video