finally! The slap everyone was waiting for in the stock market – financial

There was a time when the good people of our lands were shouting “The king is dead, long live the king.” Today, it is better to be “the stock market is falling, long live the stock exchange.” Surprising, paradoxical, this new cry? In appearance only.

True, the stock market is not in good shape, to put it mildly. The stock market has not stopped falling since the beginning of the year. And Nasdaq to give one example lost 26%. Of course, it’s never funny to be self-centered. But if you talk to seasoned investors, they will all tell you the same thing: It’s a nice slap, but a healthy slap!

Not because these stock exchange veterans are masu or they rejoice at other people’s misfortune, but simply because the stock exchange has been in trance for several years now. Indeed, since central banks have opened the liquidity tap wide and kept interest rates artificially close to zero per cent.

Today, central banks are gradually closing the liquidity tap. pattern ? They must fight inflation as a priority, while risking derailing fragile growth. And to combat inflation, you have to go through the box of rising interest rates.

However, it is well known that higher interest rates are generally not good for the market of publicly listed companies and especially those that are heavily indebted. As a result, the current stock market purge is a useful slap, because previously Most of the listed companies were overvalued, especially in the technology sector.

One example among many others? In 2020, the stock exchange valued electric truck maker Nikola Motor, which presented itself as Tesla Trucks, at $30 billion a few days after it went public. Not bad is it? Yes, except that at that time, this company had not yet made a single truck!

In other words, we are coming out of a period when interest rates were very low and central banks intervened all the time to avoid a stock market crash, Investors believe that trees can climb into the sky.

Today, with the current stock market purging, investors – the real ones – are happy to see their role finally being recognized. The exchange will finally make the difference between the two values: the good and the less useful.

In other words, the tide would not rise for everyone as it did in the ancient world. As for the financial analysts, they will finally be able to practice their profession of separating the wheat from the wheat. So, yes, that’s right, behind the bad news about the stock market slap, there is good news: Rational return to the stock market.

In the ancient world, as one stock market commentator said, “water is no longer wet and fire is no longer burning.” As for cryptocurrencies, they drink the cup so much that some trading sites in the United States give addresses of suicide prevention centers.

An opportunity for you to really remember that if one is always going to be driven by the temptation to earn, the latter should bear in mind that when it comes to investing in cryptocurrencies, you should only put into it what we are prepared to lose. In short, avoid the effects of leverage. As for those who will tell me that we have to look at all this long term, I will answer in Woody Allen’s words: In the long run, the only two things that are certain are death and…taxes!

True, the stock market is not in good shape, to put it mildly. The stock market has not stopped falling since the beginning of the year. And Nasdaq to give one example lost 26%. Of course, it’s never funny to be self-centered. But if you talk to seasoned investors, they’ll all tell you the same thing: It’s a nice slap, but it’s a healthy slap! Not because these stock exchange veterans are masu or they rejoice at other people’s misfortune, but simply because the stock exchange has been in trance for several years now. Indeed, since central banks have opened the liquidity tap wide and kept interest rates artificially close to zero per cent. Today, central banks are gradually closing the liquidity tap. pattern ? They must fight inflation as a priority, while risking derailing fragile growth. And to combat inflation, you have to go through the box of rising interest rates. However, it is well known that higher interest rates are generally not good for the market of publicly listed companies and especially those that are heavily indebted. As a result, the current stock market purge is a welcome slap, since most of the previously listed companies have been overvalued, particularly in the tech sector. One example among many others? In 2020, the stock exchange valued electric truck maker Nikola Motor, which presented itself as Tesla Trucks, at $30 billion a few days after it went public. Not bad is it? Yes, except that at that time, this company had not yet made a single truck! En d’autres mots, nous sortons d’une période où les taux d’intérêt étaient tellement bas et les banques centrales intervenaient à tout bout de champ pour éviter un krach boursier, que les investisseurseurs perva lest cru au cru que sky. Today, with the current stock market purging, investors – the real ones – are happy to see their role finally being recognized. The exchange will finally make the difference between the two values: the good and the lower quality. In other words, the tide would not rise for everyone as it did in the ancient world. As for the financial analysts, they will finally be able to practice their profession of separating the wheat from the wheat. So, yes, that’s right, beyond the bad news of the stock market slap, there is good news: the return of rationality to the stock market. In the ancient world, as one stock market commentator said, “water is no longer wet and fire is no longer burning.” As for cryptocurrencies, they drink the cup so much that some trading sites in the United States give addresses of suicide prevention centers. An opportunity for you to really remember that if one is always going to be driven by the temptation to earn, the latter should bear in mind that when it comes to investing in cryptocurrencies, you should only put into it what we are prepared to lose. In short, avoid the effects of leverage. As for those or those who will tell me that it is necessary to look at it all in the long run, I will answer with Woody Allen’s sentence: In the long run, the only two things for some are death and … taxes!

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