Is The Gloom And Doom A Sign We Are Nearing A Bottom?

1 mo
LeoFinance
4 Min Read
801 words

The FUD is spreading like wildfire. We all know the world is coming to an end. Whatever we face, it is going to be of epic proportions.

At least this is what we are told according to all those videos on YouTube. Of course, Twitter is no better with its share of the gloom and doomers.

So what is really going on? The reality is nobody can really predict markets. They might be ready for a larger crash or we could see a massive rally. Markets do not operate upon any fundamentals, it is pure emotion.

Thus, what we are facing.

image.png

Source

Economic Slowdown

There is little doubt the economy is slowing down. The numbers globally are pretty bad. While some point to things they view as positive, the fact that China is closing cities while US retailers are getting stuff with inventory is not a promising picture.

Some even assert the move by China is done to cover up the fact that orders declined a great deal. We warned repeatedly that demand was going to dry up in 2022. The imbalance was starting to show in the 4th quarter with record jump in inventories in 2 out of the three months.

Here we are 5 months later and we see it growing. The major retailers all tell the same story. However, the reality is US companies were caught with their pants down during the lockdowns, causing them to be ill-prepared for the purchasing that took place. Since services dried up, people bought goods.

These companies did not want to fact that again so they ordered to make sure it wouldn't happen. Of course, this sent issues up the entire supply chain with many reading too much demand. Suddenly, when this was realized, companies started to cancel orders.

And that is what worked up the supply chain.

Therefore, due to a number of issues, including the fact we are now dealing with deflationary money throughout the entire global banking system, it is likely we see parts of the global economy head into recession.

The EU is getting close. China is looking pretty bad. Japan is having major issues. The only question remains whether this will enter the US or not?

The Economy And Markets Are Different

We could post dozens of reasons why the economy should tank the markets. Certainly, logic says that is how things work. Unfortunately, it is not.

Hence, we could face a situation where the economy is tanking yet some markets are going up. People will always be operating under the flight to safety. Where investors feel money is the least at risk is where it will flow.

At the same time, we have a lot of money under management. That cannot sit in cash for extended periods of time. This is especially true as we enter the second half of the year. That is when the money managers have to make their numbers. Parking money in cash for a short period of time is acceptable but after a few weeks, they have to put it to work.

After all, cash doesn't provide much of a return, even with the increase in interest rates.

So what is going to set the market in motion. It always comes back to fear or greed. While is most prevalent?

When you see the systemic overture in one direction or the other, then you will likely have an indication of where things are going.

Contrarian Indicator

Of course, if things go too far in one direction, suddenly we could get a whipsaw. Markets do not operate on logic so applying that is useless.

Right now we see a lot of doom being touted. There certainly is enough for people to base this conclusion upon. However, when investing, we have to remove emotion as much as we can. What do the facts tell us?

Again, markets are their own animal. Anyone who played them for any period of time learns this. So, what are the markets telling us?

Right now we are seeing a lot of negativity and that is being reflected in price action. That said, the sentiment is so overwhelmingly awful, we could see a rapid change. It is something that often happens and we should be prepared for.

None of this is financial advice but it is good to pay attention to the overall sentiment and be ready if it shifts. Nothing goes one direction forever.

For this reason, could all this doom be a contrarian indicator? That is something each person will have to decide.

Just be mindful that it could be a sign we are nearing a bottom.


If you found this article informative, please give an upvote and rehive.

gif by @doze

screen_vision2025_1.png

logo by @st8z

Posted Using LeoFinance Beta


We've seen an uptick today as everyone gets their month-end orders in and prepares for the long weekend in the US. I suspect the markets will continue sideways until the next FOMC then then trend downwards as the Fed increases rates again.

3

With the lateral movement of the markets, apparently, you need to do like with crabs, boil, remove the shell and eat with pleasure)

Posted Using LeoFinance Beta

1

Bulls, bears and crabs... it's a diverse diet we're consuming these last couple of years.

1

It seems that they, too, sometimes take a bite out of us)

0

The likelihood of a rate hike next month is certain. What is a major question what will happen in August.

Fun times ahead.

Posted Using LeoFinance Beta

0

I love the noise reduction of the doom and gloom.

Posted Using LeoFinance Beta

1

You need to order Pink Floyd, they are masters of this business)

Posted Using LeoFinance Beta

0

This is true

Posted Using LeoFinance Beta

1

I hear hammers walking and crashing into the Wall)

0

Stop the hammering!

0

It gets rather loud.

Posted Using LeoFinance Beta

0
1 mo

"Sell in May and go away"

And it does not feel like max pain yet. We may see dead cat bounce and further consolidation is likely. Will take time to play out.

Posted Using LeoFinance Beta

2

It will be worse if a dead cat sticks to the sole)

Posted Using LeoFinance Beta

0

It could be. Dead cat bounce is meant to lure people in on the buy side and then watch then get crushed.

Posted Using LeoFinance Beta

0

I was shocked when I read that the bad economy crisis hasn’t hit US yet. Nevertheless,I’m glad that the happenings in the world economy and fear and greed bar could be possible sign of bottoming. Let’s hold on tight

Posted using LeoFinance Mobile

1

You need an anti-shocker, calm down, the crisis is already there, but he is being kept on a long leash.

Posted Using LeoFinance Beta

0

The US market tends to be the last one hit. The EU is much further down the road. We will see if they go negative this quarter.

Posted Using LeoFinance Beta

0

The global economy is getting really bad. Currently there are problems with fuel. And next year there will be problems with food. We are consuming last year's crops this year, there will be a 30% shrinkage next year. Problems can deepen. I think this will both increase inflation and aggravate the problems in the global economy.

I think that the rise in inflation and the increase in interest rates will reflect positively on the crypto market after a point.

Posted Using LeoFinance Beta

1

Crypto, our opportunity to get through this is a winner, I pray for it.

Posted Using LeoFinance Beta

2

The crypto market can protect us from the global economy going bad.

Posted Using LeoFinance Beta

1

The challenge with that is that the rise in rates will be short lived. Higher interest rates cannot be sustained with deflationary money. And with the collateral and USD liquidity crisis, we are feeling the same effects are we did in 2018.

Posted Using LeoFinance Beta

0

We may face serious problems after July. If some measures are not taken, there may be very serious economic crises. Unfortunately, all markets will be adversely affected. Increasing interest rates will cause bigger economic problems in the long run. Frankly, some countries may even go bankrupt towards the end of this year or in the first quarter of 2023.

Posted Using LeoFinance Beta

0

I remember the days when I was still trading stocks. Whenever I see a chart similar to BTC's current formation, that's the time I buy.

Posted Using LeoFinance Beta

1

Yes, the price is attractive, but who knows, maybe it will look even more fun)

Posted Using LeoFinance Beta

0

Long term views can really help to overcome a great deal. Dips are part of the market although they can turn into the bear.

Yet over the long run, we can see how things can change.

Posted Using LeoFinance Beta

1

I'm not expecting a ATH anytime soon, but like the last "bear" season we will bounce around and patiently wait for things to recover, there will be ups and downs.

I think it's interesting that everyone is expecting straight down to cycle bottoms and then it staying there, but we know that's not how it works.

Posted Using LeoFinance Beta

1

The good thing is that these attractions are free tickets)

Posted Using LeoFinance Beta

1

The key is to keep building through the bear.

It is something that makes our wallets stronger when the bull finally does arrive.

Posted Using LeoFinance Beta

2

Very good analysis, I agree with you the website already near a bottom if we look at FUD levels. The markets itself could go down a bit further but at one point not far away FOMO will kick back in. Holding cash is not a longterm option, the money needs to be invested. And a lot of good companies are trading at interesting levels again (e.g. Tesla, Microsoft, Apple, NVIDIA).

1

I didn't think about stocks, but, you gave me a good idea, thanks.

Posted Using LeoFinance Beta

1

😉 Glad if I could help. Just visit my account regularly if you like to read not only about crypto but also opportunities in the stock market. ✌🏻
Regards Thomas

1

Yes, thanks, I'll read this thread.

Posted Using LeoFinance Beta

0

🙌🏻🙋🏼‍♂️

0

I have not yet learned to read the language of cubes, but I promise I will learn!)

0

What do you mean with „language of cubes“? 🤔

1

Emoticons in the form of squares)

0

Of course, we thought we were nearing a bottom in all market crashes. So it is always best to tread lightly.

Posted Using LeoFinance Beta

0
1 mo

It is not only the Crypto market that is going down, I was hoping we were at the bottom, but I see we are still going down. I think the Ukrainian war is reaping havoc with the economy, and the markets.

Posted Using LeoFinance Beta

1

The damage is caused not by the Ukrainian war, but by Moscow orcs led by a farting boy, things should be called by their proper names)

Posted Using LeoFinance Beta

1
1 mo

Interesting description!!
!LOL
!MEME

Posted Using LeoFinance Beta

1


Credit: cmmemes
Earn Crypto for your Memes @ hiveme.me!

0

Equities seem to be bouncing around a great deal.

Posted Using LeoFinance Beta

1
1 mo

Everything is on the unstable at the moment, just when it looks to stabilise, things go haywire again.

Posted Using LeoFinance Beta

0

I can only wish for the bottom to come and go and if its going to linger for a while wouldn't it be nice if someone can say.
Hanging on a thread isn't good at all and truth be told emotions must be separated from the markets.

This is truly inspiring, thanks for sharing.

Posted Using LeoFinance Beta

1

I'd rather take off, high-high and fall, low-low)

Posted Using LeoFinance Beta

2

I don't really think we are at the bottom. Discretionary funding is going down and I don't really think there will be that much money left for retail to jump in.

Posted Using LeoFinance Beta

1

Yes, sometimes the bottom is hard to find, the foot falls through the viscous silt that crawls through the toes)

Posted Using LeoFinance Beta

0

We are going to see major economic headwinds.

Posted Using LeoFinance Beta

0

the slowdown of the economies is worldwide if China is forced to close small cities that in turn produce many goods, that is where the big companies think about tomorrow but oversaturate the world market.

1

They closed the big cities which is bad enough.

Posted Using LeoFinance Beta

0

I can assume that the closeness of many industries in China from the world is only a small part of the great plan of the great Mao, who believed that the worse it is for the world around China, the better for China). I am sure that China, with its discipline, will be able to rise in the blink of an eye, at that time when other countries will convulse, lol, it's sad to realize.

Posted Using LeoFinance Beta

1

China has a lot of headwinds themselves. So to presume they could flip a switch and rise up is a challenge I think.

The biggest challenge they have is the aging population. Demographics in China are going to resemble Japan.

Posted Using LeoFinance Beta

1

China is very different from the Empire of Japan though, Japan was able to rise from defeat in World War II and become the fastest growing ecotonmic in the world. No, there are common features, they have their own ideals, which can mobilize the nation for some feats, including in the economy. If in Japan this moral uplift is laid down from generation to generation, as a matter of course, on a voluntary basis, then in communist China, I think, love for Mao is hammered in from childhood with a stick. And, Mao's ideology remains unchanged. His works are the main plan of the entire Chinese political elite, which they carry out implicitly, as history shows. They smile kindly at everyone, but outside of China they have no friends, as Mao teaches, they are alone in their struggle, and all the countries of the former socialist camp are traitors and nothing more. Only if the whole world becomes China will China calm down. I think they can rise with the click of a finger, or a switch).

0

I don't think we're even close to the bottom..

2

I hope you are right. I for one, wanna buy lowerrrrr. Lol ❤️✌️

Posted Using LeoFinance Beta

3

We are at some pretty low levels now. LOL

But there might be better buys.

Posted Using LeoFinance Beta

0

Who knows we might be at the bottom already or not because market is just too crazy I must say but irrespective of what happened we must just keep accumulating

Posted Using LeoFinance Beta

2