Mati Greenspan, Senior Market Analyst at FX broker eToro, has provided his daily commentary on traditional and crypto markets for January 22, 2019.
Highlights include:
- Rising Inequality a Backdrop at Davos: The annual forum in Davos is a meeting of the world’s wealthiest to try to solve inequality, a problem that has risen following the financial crisis 10 years ago. There will be a panel at the conference that pits crypto skeptics against the crypto enthusiast founders of Circle and BitPesa.
- Global Stocks Down on Chinese Economy Fears: Global stocks declined modestly as Chinese President Xi urged for calm in markets, while Trump took the opportunity to criticize the country’s trade policy.
- 10 Year Challenge, Markets Edition: The Dow Jones has aged gracefully, like Reese Witherspoon, over the past 10 years. Meanwhile, crude oil has had a more difficult decade.
- 10 Year Challenge, Crypto Edition: Bitcoin was brand new 10 years ago, but in 2008 eToro CEO Yoni Assia wrote a post about solving income inequality through the introduction of a new currency. Ten years later (almost to the day) he introduced the GoodDollar project.
Today’s Highlights:
- Shutdown: Day 32 | Days to Brexit 66
- 10 Years Market Challenge
- Crypto Decade
Traditional Markets
The clock ticks slowly on our two headline political snafus. In an apparent response to the weak Chinese GDP data, Xi Jinping has urged for calm and warned of financial risks.
Never missing an opportunity to gain the upper hand, President Trump has also responded to the Chinese figures.
Needless to say, global stocks are playing defense today. The China 50 is leading the pack with modest declines of 1.36%.
Ten Year Challenge
If you’re not familiar, the 10-year challenge is a new internet fad that has people posting a pic of themselves 10 years ago next to a current glamour shot. Though many have criticized this as just another excuse to post selfies, I thought it’d be fun to look at a few markets. 🙂
As far as the stocks are concerned the last 10 years have been stunning. Here’s a quick reminder of what the Dow Jones looked like in 2009 Vs today.
As far as Emerging Markets are concerned, time was not as good to them as it was in the USA and other developed economies. There have been some good times and some bad but overall is aging nicely. Kind of like Morgan Freeman.
Gold was in the thralls of a massive bull run in 2009. Since its peak in 2011 though, it’s looking more like Soulja Boy’s Headband.
Crude oil looks exactly the same. Just like Mariah Carey.
King Dollar had just one radical change. For better or worse depends on your personal politics and point of view, kind of like the White House.
What about Crypto??
10 years ago, bitcoin was just two weeks old. So we can easily compare this one to Jordan Pickford who’s gone from a punk child to a full-blown superstar stud.
Kidding aside, we have an entire new emerging and thriving industry now that’s grown up around bitcoin and blockchain.
Let’s have a remarkable day ahead!
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