What’s Behind The Stock Market Drama?

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This Monday was one of the worst days for global stock markets in years, Stocks in the US, Europe and Japan tanked on Friday and again on Monday before a partial rebound. Bond yields and foreign exchange rates swung around wildly too.

The Magnificent seven stocks lost about $1 trillion dollars in value in just two days. So, what exactly is going on in markets, and how much should we worry?

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40 Comments

  1. The Market have been suffering over the past month, with all the three indexes recording losses in recent weeks. My $400,000 portfolio is down by approximately 20%, any recommendations to scale up my returns before retirement will be highly appreciated.

  2. Look @ the bigger picture, its mostly caused by west looking the other way of a Genocide 10 month in the making, in a complete disregard of ethics, Humanity! US allies in Asia (Japan and South Korea), wary of China's rise, and the potential of its markets, Are in fact leaning toward a decoupling from US and EU for ethical reason mentioned, ( Israel was not invited to Hiroshima anniversary.. and so west declined the invitation) Japan and china both began dumping their US bonds stocks, as they became "Riskier" investments than in their own internal economies. de dollarisation is the trend as the "Free world" continue to borrow to try and maintain its "Hegemony" on the global south. it wont last. Japan knows it.

  3. Nah if you ask them and they say that no, they are not looking for a job, you do not get to make your own independent appraisal and insist that they really do want a job. Sure, maybe in a 10% unemployment economy that is something you can claim, that more people would come tumbling out of the wood works once job hunting stopped looking like a waste of time. But this is a 4% unemployment economy, those high prices are bright beacons encouraging people to make startups to take a slice of the pie.

  4. Patrick, how can you address the $1 trillion wiped out with respect to your financial nihilism video? Because if that much money can just evaporate from seven companies and that's just the tip of the iceberg, how can you possibly claim to youth today that capital markets have anything to do with practical or material reality? Where did all that wealth "go"? How is this type of occurrence any different than the wild swings in "alternative" markets? How is this not just casino style economics?

  5. I don't think AI in tech is really about increasing revenue. It's about cutting cost. The computer scientists working on it are, in a very real sense, training their own replacements. AI is good at some things and terrible at others, but it is REALLY good at writing code… EDIT: What kind of shitty economist creates a rule and, the very first time it's triggered, says, "ignore that rule, it doesn't mean anything?" One who is playing at politics bc it's election season, that's who. 🙄

  6. When everyone already bought, who else was there to buy? Simple as that. Btw, nasdaq followed profit targets from past, so just biggest players said it's enough and everything else is noise.

  7. I find it funny with this whole discussion about investors. Like… do they have an income. What are their spending? Can they actually afford not to invest for a long period of time? If an investor is really rich and has a house of 50 million $, how much does it cost for him or her to maintain it? Can they actually afford not to gamble, or is it that if they don't, they simply lose everything? Because I keep hearing threats regarding the fact that investors are cautious and not investing. I simply think they are bluffing. And you know… 1 trillion $. But most of it is in stocks. So if they have to pay 1 million $ for a house worth 50 mil, it's not that simple. And what are they going to do? Let the house go down? They can't actually sell it fast to get ride of it, so it's a really complicated situation if they do not invest. If they invest, they might get some money out of that. And with that pay for the maintenance and hope for better times. Otherwise, it simply goes down. One might notice that when talking about a global market, the global market never freezes. It keeps moving on, even if the investors lose. They might not invest in the US if it goes down, but they will invest somewhere else. They simply can't afford not to do it. It's like being a professional gambler. That's what you do. You have bills to pay. You can't just quit. They will simply start looking really closely what's going on in Africa. Everyone went there in the last couple of years. The US, Russia, China, everyone. I guess that's their plan.

  8. 350 scholarships since 1987 doesn’t seem like much/enough. I don’t know much about The Boule, but if one believes as I do that the state of black people is in peril, perhaps its time for us to hold our leaders and instiuttions to a higher standard and entertain the notion that those insitutions and elites have failed us, whether well-intenioned or not. Not to spend someone else’s $, but the former CEO of Amex seemingly could fund 350+ scholarships by himself.

  9. Fractional Reserve Banking based on Fiat Currency Which is printed out of nothing and which is backed up by no physical Real Solid Metal like GOLD and SILVER and which is loaned at 'X' amount of Interest on every single DOLLAR $ and which is serviced at another Borrowed $ Dollar with an 'X' amount of Interest on it cannot be sustained forever. People are all indebted in Billions and Trillions. The sooner this system Crashes the better it'd be… The Longer it would keep on dragging itself will create DOOMSDAY SCENARIO for the entire Planet as it will implode at some particular time in the future.

  10. I think you need to do a video on the yen carry trade. I do believe that the Japanese have potential to become a global powerhouse in finance as ive read that the yen carry trade is between 20-40 trillion dollars worth of credit.. thats fkn huge and thats before the money multiplier of fractional reserve banking and leveraged positions internationally. the discrepancy of .35% and 5.5% from the US taking the yen from 160 to 144 and causing global stock markets to drop 8-13% just shows how this low interest money is so critical to the global everything bubble.

    I live in Japan and know that the Japanese hurt deeply from a rise in interest rates and that the domestic Japanese market will see a crash of so many companies and real estate if the interest rates go up even a little bit.. But at the same time its much needed flushing of bad credit and households still hold huge amounts of cash, infact one of the highest cash positions even compared to China.

    If the Japanese raise interest rates, sink japanese domestic RE, kill off zombie companies and probably banks as well, then the phoenix rises as at the same time they will sink foreign stock and real estate markets as well as crypto markets and their people will be sitting there with a super powerful currency that they could in theory buy up international assets super cheap with a yen that could be trading around 50 yen to the dollar or about 3x as valuable as it is now. Japan is super desirable to live in and they're def an American ally and possibly subordinate state but Japan is ready for some sweeping changes and getting rich seems right within grasp.

    Popping the everything bubble is going to happen, the Japanese are in control of the game far more than people think and killing the bubble would cause inflation in the west as there will be so much less supply of goods as customers cant spend money they dont have and governments will helicopter money to avoid revolutions while the Japanese are sitting pretty either buying foreign bonds that yeild again or foreign assets that are the pick of the litter post crash..

    I know many think im crazy for doing do but I sold my companies in the US over the last 24 months and bought yen, I do speak Japanese and my wife is Japanese but I see such a clean, safe country with what i perceive is the healthiest and best food in the world and although has some corruption, nothing compared to the US where I am including pharma rackets among many others. The people here will go through short term pain in this scenario but come out so much stronger than anywhere else and in the eventuality that things dont work out like that.. At least they will go through things as a team and as orderly as possible, I was here for the 2011 9.1 earthquake tripple nuclear meltdown 90 ft tsunami thing and America could not do what Japan did.. the global everything bubble would be a walk in the park with equities having P/E ratios under 8 and households having cash even if local banks and government is in debt.. This scenario works with as little as 1% interest rates while the west starts lowering interest rates.

    One thing I will say is that yes Japan is socialist, but the government actually likes their own people and the people, not all, but vastly LOVE their own country and support their own government.. Unlike the US where im from, I think their government has their own peoples interests at heart and the buck stops with the emperor who gets to maintain harmony with a legal system that isnt packed with litigation and lawfare like the west.

  11. "Japan is facing some structuaral problems.. 'Their aging population, low growth and high public debt…'
    … Not just Japan.

    Also, it's not hard to wonder why consumers are not enamoured of AI branded products that literally (as in actually. ie. in the pre^millennial, non-ironic sense) removes their source of income (dad/mum's jobs)