Welcome to MarketBites! Here's your daily market update for 6/23/2022:
Quote of the Day:
"Failure defeats losers. Failure inspires winners.”
- Robert Kiyosaki
📝Daily Stock Market Thoughts
The S&P 500 Index and the tech-heavy NASDAQ both gave up earlier gains and closed in the red. The dollar fell, interest rates moderated, and safe-haven assets such as gold gained.
Stocks rose after Fed Chair Jerome Powell reassured investors that he is committed to bringing down inflation, while monitoring the risk of an interest rate-induced recession. However, the market turned and ended the day in the red as Powell acknowledged that it would be "difficult to engineer a soft landing." This beautifully crafted piece of literature can also be translated to something like "the Federal Reserve is having a very difficult time bringing down inflation without causing a recession in the United States."
After a massive rout in crypto, the market is finding a bottom at around $20,000 per Bitcoin. Powell mentioned that the cascading liquidations in crypto should not affect the overall financial system. Unrelated, but an interesting note about liquidations: A defi protocol on the Solana Network voted to take over someone's account worth over $100 million, to better manage the risk of a potential margin call. This is an unprecedented move from an ecosystem based on decentralization.
📊Chart Of The Day
The principal problem of the market timer is that there is always a better time to buy. People who have been waiting for a market entry are now presented with the worst first half for stocks since 1970. Will they buy now, or there is a better time?
What Else Is Happening:
- Powell warns higher rates carry recession risk - (read here)
- FDA to order Juul e-cigarettes off of the market - (read here)
- Biden calls on Congress to suspend gas tax - (read here)
- Franchise Group may lower Kohl's bid - (read here)