The Dow Jones fell more than 200 points on Wednesday amid a broader sell-off of cryptocurrency and tech.
Three market experts explain how they assess volatility.
Stephanie Link, chief investment strategist at Hightower, assesses the threat of inflation.
“This is clearly monetary policy, the Fed behind the curve. It will be interesting to get the minutes from the Fed. [Wednesday]. It is also a question of inflation – is it transitory or not? Personally, I think that all is not transitory. Part of it is, obviously, on the commodity front, and as we get into supply chain issues, but if you look at the wage figure from the GDP report, 0.7% , then you look at the JOLTS number of 8.1 million, and then you listen to what McDonald’s and Chipotle have to say in terms of increasing wages. It is certainly something that is close to our hearts. I know that concerns me too. And then also just add seasonality and profit taking. Keep in mind that the S&P is up 85% from last year’s lows. So, I understand. I think it’s very interesting that the money in money market funds is now back to $ 3 trillion, so there’s definitely more of a defensive feel. I’m really not changing my strategy. I really believe that growth will continue to be strong. “
Michael Novogratz, founder and CEO of Galaxy Digital, observes the sale of Bitcoin.
“You had a confluence of events – a combination of Tax Day, Elon Musk tweets, etc. We had started to break down the positivity of the price action, and now we have a liquidation event. And, you know that Humpty Dumpty never gets back up in two days when it cracks. It’s gonna take a while, the market is gonna consolidate, it’ll find a bottom somewhere, hopefully it will be near here. $ 36,000 [for bitcoin] … We’re pretty close, they’ve had big, big sales with huge volume. And then, it’s not going to bounce back right away, it’s going to consolidate for a while. The story has gone nowhere. “
Jim Cramer, host of CNBC’s “Mad Money”, discusses the pain of the market.
“This day is more like a day of washing, a day of crescendo, everyone is really panicked. Young people who are buying crypto right now, they are petrified.… What you need to do is remove yourself from the stories that are really good that have come a long way, which could benefit from that. Let’s say there is a catalyst like bank stocks. “