STATUS QUO FOR THE ECONOMY
This is a sign we are fully motivated by November. I hope I am right but I wish I meant the right index for the economy. One thing I can be sure of, being neutral in a day where the FED hikes interest rate again, this is common for the investors. The markets are down, this is a giving. Crypto shows the correlation existing between all markets. I wish I can explain the metamorphic reason this index changes quite a few times this year.
There are seven reasons for it. Feel free to delve in by clicking on the source and you will pamper your knowledge. Just a month ago it was all fear. As you can see everyone is minding their business. I was researching this morning about the world unemployment. It is sitting around 6%. If you take into account the world population it is around 480 million folks with no employment. I think this number could be higher.
Trying to hold on to a 2% rate of inflation is a daunting task that ripple all around the world. A strong dollar does not help much unless you are earning a lot of it and then you can use it against the other currency. It will take the economy some managing to do to get there. As for the world economy, this is another story on top of another one.
Every other countries will continue to find ways to adjust in order to control their inflation. I do not think it is an easy task knowing the situation is different.
Every time there is a rate hike, it is getting harder to make a huge purchase. Hard to hold on credit card debt. Getting a car, a house. The economy needs to keep moving. Labor is still strong across the board. Still it is not enough to get down to 2%. While the US is leading the effort to curve inflation, it is a global matter of some sort. Eventually it has to reach a point of consensus where the economy will accept its next move.
Neutral is telling a story where fear is dissipated and slowly making space for green.
For now it is too early to say. The economy as a whole favors enormously the long term holders.
Posted Using LeoFinance Beta
This post has been manually curated by @bhattg from Indiaunited community. Join us on our Discord Server.
Do you know that you can earn a passive income by delegating your Leo power to @india-leo account? We share 100 % of the curation rewards with the delegators.
Please contribute to the community by upvoting this comment and posts made by @indiaunited.
Like it or not, I have definitely become a long term holder. It's not the path that I thought I would be taking when I got started in all of this, but here I am. I probably wouldn't trade it if I could though.