Chamath: The ENTIRE Stock Market Is Crumbling Down (And When To Buy)

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Over the past few months, a variety of fund managers and billionaires have been warning of an economic slowdown. One of these managers is billionaire hedge fund manager Chamath Palihapitiya, who has recently been warning about the implications of the Fed’s actions. We saw what happened when the Fed printed unprecedented levels of money into the economy. Inflation began to soar, the financial markets appreciated to all-time highs, and speculation increased to dangerous heights. The Federal Reserve has a substantial impact on the economy. The risk going forward lies in the Fed’s reaction to rising prices. That is what so many fund managers, economists, and retail investors have been worried about. This video will cover why Chamath believes inflation is no longer what investors should worry about. According to Chamath, investors should be looking at a totally different indicator.
In a frightening turn of events, the Federal Reserve is adamant about cutting its balance sheet and raising interest rates to combat inflation. Millions of people around the world have called out inflation as not being transitory, but it’s looking like those worries may be a self-inflicted prophecy. The popularity of that opinion is causing the Fed to be overwhelmingly hawkish. Just like the Fed’s reaction during March of 2020, the Fed may be overreacting again but on the other side of the spectrum. Chamath believes that inflation may actually turn out to be more transitory than people are expecting solely because the Fed may overreact. One famous investor named Jeremy Grantham has been warning of a market crash for America’s superbubble. Grantham explained how the market has been stabbed by COVID, money printing, unexpected inflation, and the promise for higher interest rates. He sees the market as a monster that has appeared to be immortal over the past couple years but will suddenly die down. The phrase superbubble is used because Grantham called 2020 a quote-unquote “epic bubble” and he also called 2021 another bubble. Therefore, we would currently be in a bubble squared or a super bubble. I personally don’t listen to Jeremy Grantham, because he is essentially a broken clock. A broken clock says the same time every day and will be right two times a day. In the case of Grantham, it’s unclear whether his money was where his mouth is. That being said, Grantham does detail solid points from time to time. The US economy is in a weak position by all means. Chamath believes that the Fed will likely overdo its retraction and potentially cause the US to go into a recession. The government printed $10 trillion and equities have corrected by $10 trillion. If equities continue to crash from rising interest rates, then it is possible that the net money outflow could eventually become negative. This is evident from the fact that growth stocks and cryptocurrencies have crashed significantly over the past couple of months. On January 22nd on the All In Podcast, David Sacks, a famous venture capitalist, explained why a recession is imminent, which Chamath agreed with.
The most important factor that is pointing towards a potential recession is the bifurcation, or in other words, the division in the global economy. You might think that interest rates are increasing around the world, but that’s not the case. While the US Federal Reserve has been increasing interest rates, China has actually been lowering interest rates. This is concerning for one reason. The Fed raising interest rates could indirectly crash China’s economy, which is currently in a weak position. Because China represents such a significant part of the economy, a crash in China’s economy would hurt America's economy as well. This is problematic because China’s property sector is currently going through a major deleveraging. A deleveraging is when companies reduce their debt by rapidly selling assets. We’ve seen this happen not just with Evergrande, the second largest Chinese real estate developer, but also with plenty of other developers as well. At the same time that this is happening, China is also being impacted by Omicron, as the Chinese government has been extremely strict on shutdowns. The result of these two factors is China’s rapidly slowing economic growth, which is projected slow down even more in the future. Chinese policy makers are panicking in response to this and are quickly loosening their monetary policy. Yu Yongding, an economist who once advised the People’s Bank of China, told Reuters that “we need a relatively loose monetary policy. How much we loosen depends on economic conditions, but the policy direction is clear.” The People’s Bank of China, or PBOC in short form, will likely cut the banks’ reserve requirement ratios soon as well.

[Patriciacraig]

Best part about this sell-off i have been mostly right, the worst part about it is that i don’t t short anymore so I’m not making much money, but at least i get to buy twice the btc with same USD amount

[johnlennon]

Novice to market speculation assume that trading/investing success comes from being right.. long term success depends upon avoiding big losses, trading is a marathon, not a sprint. avoid big losses and sooner or later big wins come along.

[alhassanraboumar]

Nice contents Sam Deymon put up always👌.BTC hits a new bullish price as people increased their bids in hopes of making huge gain from the rise but as we can all see now the market is very unstable, the truth is that you can always make more profit from trading rather than just hoding and waiting for the price of BTCto skyrocket . Indeed its a tough decision for both old and newb!es whose intensions are just to hodl and sell but rather the potentials of trading. I wept deeply and prayed after the last time i had much loses.

[mialogan]

You can earn reasonable profits when trading with the right platform and mentor like Sam Deymon who has been in the game for years and knows the best strategies in trades.

[gurametsadashvili]

*I will forever be in-depted to you Victoria 😇 you've changed my life, I'll continue to preach about your name for the world to hear, * *you've saved me from a huge financial debt with just little investment, Thanks Ms Victoria Cox* 🇺🇸🇺🇸

[Dylan-baerber]

I came here to learn how to invest after listening to a guy on radio talk about the importance of investing and how he made $960, 000 in 4 months from $160k, somehow this video has helped shed light on some things, but I'm still confused, I'm a newbie and I'm open to ideas.

[gewilsonottoag]

I HAVE INCURRED SO MUCH LOSSES TRADING ON MY OWN...I TRADE WELL ON DEMO BUT I THINK THE REAL MARKET IS MANIPULATED... CAN ANYONE HELP ME OUT OR AT LEAST TELL ME WHAT I'M DOING WRONG?🤔

[pjdelucala]

It is not complicated. It is very simple. Inflation cannot be snuffed out by raising interest rates to 2%. It must be raised to 15% like in the late 1970's but that would end the world economy as we know it because interest rate derivatives would be exercised! Also debt servicing would cripple the country. The system as it is is crumbling.

The U.S. government must sell its assets to pay off the debt. This is what a family in financial trouble would do. The U.S. can allow gold to reach 65K an ounce. Currently the price is managed. Then the U.S. can use its gold to buy back the debt. Then the U.S. must go back to some type of gold standard and stop printing money.
The Fed must stop printing money and keep the supply constant for about 10 years. This will allow an expanding economy to grow into the money supply. This is how inflation was eliminated after the Civil War but it took 14 years. It takes time and patience but our politicians don't have patience.

Peter de Luca: Economist

[stevet]

Let's review this video a year from now.

[heinzbucksandcastle]

I doubt we will see a bottom in the markets until sometime in 2023. This market just peaked in late 2021, so after 13 years why would a bear market correction only last a few months? Real interest rates are negative, the yield curve is flattening, and we are just due for a major downturn. Markets this overpriced move down without exception.

[raymondblind]

i feel those who would allow the market
dynamism to determine when to trade or not are
either new in space in general or probably just
naive, the sphere have seen far worse times than
this, enlightened traders continue to make good
use of the dip and pump even acquiring more
equities towards trading sessions, l'd say that
more emphasis should be put into trading since
it is way profitable than hodling. Trading went
smooth for me as I was able to raise over 9.2
BTC when l started at 1.5 BTC in just few weeks
implementing trades with signals and insights I would advise you all to trade
your asset rather than holding for a future you aren't
sure about.

[heinzbucksandcastle]

Grantham has some growth stocks in the green sector, so to balance this he is short the Russell and Nasdaq. Basically, he is right but the markets do not cooperate.

[enantiomer]

And what is Chamath's angle? How does he benefit from what he is saying? He is basically almost calling the bottom and telling us to start buying..

[anthonygiachinta]

I think I will invest in foam rubber at least I’ll have something soft to fall back on🇺🇸

[Xandox]

I no longer trust Chamath. I will do the opposite of what he says. His lies and market manipulation just keep coming out.

[alyssamilano]

Mr Arthur Harold is the best recommending him to all beginners who wants to recover losses like i did

[theswingtrader]

For Gods sake stop making these stock market doomsday video and spreading FUD just to get views

[Chiamakaagnes]

For future reference, the best strategy is to start buying in slowly and then gradually increase the pace of buying as the prices continue to drop. As long as you have money to buy dip you are in a win-win situation. If the market goes up then you are making money . if the market goes down then it's buying opportunity. if you missed it this time just chock it up education and don't fret it because there will be many many dips to buy in the coming years.

[MrCampbellambulus]

Hey Chamath, how's your investment in Clover health going???

[SkrapsView]

Chamath exited the market a year ago and is pumping anything that is financially beneficially to him and himself only.