SVET Markets Current Outlook

12 Feb 2023 by rate3

Financial markets have a tendency to look ahead. Typically, a stock or cryptocurrency recovery takes place prior to a general improvement in macroeconomic conditions, with an average lead time of 6 months.

The Federal Open Market Committee's restrictive policy is the main factor that affects stock prices. Most professional market analysts expect the FOMC to maintain a hawkish stance and keep interest rates steady (or higher) until at least the end of 2023.

As a result, many investors believe that the market recovery will not begin until the second or third quarter of 2023. There are several other macro factors that add to the unpredictability of the market, such as China's military and economic policies and the conflict in Ukraine.

In the cryptocurrency market, institutional investors have a dominant presence and the market size is relatively small at under one trillion dollars. This means that a few large players can significantly impact the market by taking advantage of attractive valuations for fundamentally strong cryptocurrencies. Some expect this to happen once regulatory clarity is established.

Ultimately, this creates a complex and unpredictable investment environment, and individual investors must be agile and prepared to move quickly in both directions.