Crossroads

Back in May, just a few days before Terra Luna would drag the market to lows we haven't seen since DEC '20, we posted...

Saving money has little to do with becoming wealthy or financially independent in this new tech-driven economy. - Loss of Status

The reason is that national savings rates are 0.01%.
This is grossly below inflation 8%+.

The reality is even Warren Buffet doesn't save.
He invests in things that grow - businesses and innovation.

We also submitted to our subscriber to consider three scenarios...

1. Interest rates go up and asset prices continue to go down. People cut back on buying, companies halt hiring and start laying off thousands, a recessionary period emerges.

2. Interest rates stabilize and assets stabilize (and soothe the pain for a season).

3. Interest rates go up and inflation continues to be high. The wealth gap turns into the wealth Grand Canyon that the low-to-middle class can't cross.

As of now, scenario three is winning by a mile.
If rates are high enough, scenario one has a high probability of taking the lead.

We are in a time of extremes.

"Soft landings" and "tapered contractions" are unlikely without the money printer being turned back on.

This chart from 2017 confirms that rates can go up for months and years before the Fed considers reversing.

With the upcoming Fed rate hike next week, we expect profits made this week in crypto will be scraped off the table starting this evening.

Historically for crypto, July prints the low of the year.

June saw an aggressive market collapse due to the Terra Luna implosion, which exposed how loose leverage and lending policies bankrupted top projects in crypto.

Is there any good news?

If you're in technology for the long-haul, yes, and here's what the data shows is unfolding...