🗞 Weekly Market Newsletter | Edition No. 39

News Update + A Full Analysis of Major Indices Including Stocks, Crypto, Commodities, Bonds & Forex

May 08, 2023

Sunday, May 7th, 2023

It feels great to be back behind the keyboard tonight writing edition No. 39 of our Fox MetaCapital’s Weekly Market Update.

A little life update;

While awaiting a batch of events to unfold in the market from mid to late April (which I knew would be spearheaded by the May 3rd FOMC rate decision event), I invested most waking hours into a technical analysis master course on studying Liquidity to further my wisdom in projecting how the charts relate to both macroeconomic events and price prediction.

I do ask for your forgiveness for the absent last (2) weeks of incredible market insight (😎) arriving in your email inboxes each Sunday, but I’m confident that my improving skillsets will yield far better analysis each week in the Charts section of our newsletter, meanwhile on the flipside we have more content to discuss today as a byproduct.

*win-win*

So i’ll be keeping this edition casual as it’s great to just catch up with you all, and despite my deep study last month I was as present as a wise owl still tuned deeply into the events unfolding and I’m confident I know precisely where we are in the financial world as we speak.

To start off, it’s worth mentioning that at the time of writing this on Sunday evening, the crypto markets are charged with panic energy as a flurry of Bitcoin & Binance news has created a sharp sell-off across the industry - surprise surprise, more FUD.

🫠

It’s all so dramatic, isn’t it?

But truthfully, I do understand and have compassion for everyone invested in crypto as it has not been an easy emotional ride witnessing this digital industry mature and fight its way past the immense barriers that governments globally are creating to stall the progress of this innovative technology.

I heard someone say the other day that crypto is like risk assets on steroids, and I couldn’t agree more.

Yet, I can’t help but also take a moment to laugh at the irony of that statement, as in the past month, we again watched the entire financial sector of the United States in turmoil with more banks failing and stock prices of regional banks plummeting faster than rug pulls on sh*tcoins.

If you need the definition of sh*tcoin, please click here.

It’s true; over 20 regional banks saw their share prices freefall by 50%, some 60%, and even 90% in a matter of days as rumors spread like wildfire that up to 90% of all U.S. banks may be secretly insolvent.

But all is okay, and we were guaranteed this by U.S. Secretary Yellen and Chairman of the Federal Reserve Jay Powell as they reiterated during their public appearances in the past month that the U.S. economy and banking sector are in great shape!

Someone find me the Tony the Tiger (grrrreat shape!) GIF or the Clown Meme.

*inserts jpg*

Getting back to the irony of crypto being risky, what isn’t risky right now?

Stocks = risky.
Bonds = super risky.
Cash = lol, no.
Real Estate = until commercial real estate crashes.
Gold = yes, 100 bullions delivered via FedEx en route to you.

It’s a challenging landscape no doubt, but to call crypto inherently risky is being completely out of touch with the most recent string of major bank failures in 2023’ alone.

In fact, speaking about risk, the whole reason that started this domino effect of banking insolvencies was that the banks were holding U.S. Debt instruments (supposed to be the safest investment of them all) that became massively devalued due to the Federal Reserve’s tyranny on interest rate hikes (which just last week they did it again, raising rates to 5% (+25bps) sigh) and the fact that the U.S. Dollar is now becoming a household meme in itself due to the Yuan surpassing the dollar in U.S. cross-border trade for the first time ever.

It seems every day on Twitter, a new major world leader is making headline news by declaring a want for their nation to become non-reliant on the $USD for global trade - this doesn’t sound overly bullish to me on the Benjamin.

The Dollar has been in a freefall for months now and can’t seem to spark a rally to save its life, which is probably why Bitcoin is the highest-yielding ROI% asset in the world this year, having appreciated over 100% YTD (yet everyone is panicking over a few thousand dollar drop in price and screaming run!

Again, it’s all so dramatic.

If you’re invested in this industry, you absolutely must understand that you’re speculating on decentralized data networks gaining adoption as real-world solutions for an extremely complicated renovation of a multi-century-old financial system that is controlled by a mere 0.001% of the world's institutions and governments, who are all manipulating narratives as they jockey for the top spot as the world's most powerful country.

The transformation into a digital financial economy is not as easy of an upgrade as downloading and pressing install, because for a new game of money to be played, the game starts with a level playing field, and those who are winning the current game do not want to give up that easily.

This is why when questioned by Congress in mid-April, Chairman of the SEC Gary Gensler couldn't answer a single question about the laws governing cryptocurrencies and digital assets when probed by both sides of the congressional aisle.

…and trust me, it's not because he doesn't have an answer; it's because by not answering, he is buying time for the current major players propping up the U.S. economy to position themselves for impact at any moment, as the financial system is broken.

Don't take my word for it; just write out the number $31,000,000,000,000 (U.S. Government Debt) and try to devise a plan yourself for how to pay that balance off, with interest.

Or, ask yourself why the U.S has officially reached it’s debt ceiling and could run out of cash as early as June thus defaulting on their obligations.

We're in a world that has been playing with imaginary money for far too long, and the fiat bubble is about to pop.

You may not hear the pop because, remember, it's imaginary; it's not real tangible money anymore. It's simply a script, a story, a vintage database of resource sharing that is old and rusty and heavy to move - yet the majority of people in the world are completely blind to the reality because the system has been designed that way to appear status quo for far too long. It's become the 'normal,' which is never questioned by the civil tax-paying servants.

But behind closed doors, there is certainly a degree of panic setting in on the leaders of today.

Crypto was just the appetizer, but now we have an explosion of AI about to completely change the world as we know it forever and possibly create a brand new age of useless humans and a collapse of the human labor market.

Yet again, it's not in the news for a reason.

The two most important events that have the potential to completely change our very lives at the moment hardly even get a mention in the news - because if they did showcase and discuss it, the implications would be terrifying, and the public would react in a way that could be destabilizing - it's better to keep them unaware.

This is not hyperbole.

You must ask yourself why it's coincidental that the Federal Reserve is awaiting a 'cooling economy' signaled by 'layoffs and high unemployment' at the same time that major corporations like IBM, Meta, Apple, Amazon, and so forth are laying off thousands of workers, blaming it on 'recession fears.' At the same time, they're publishing reports to shareholders discussing how emerging technologies will make them more profitable and efficient by replacing human jobs with AI in the coming years.

It's all so, dramatic.

But this is the world we are living in, both exciting and uncertain (and expensive) at the same time.

I read a stat the other day that U.S. credit card debt is on pace to surpass $1 trillion dollars this year. That's a remarkable amount of travel points. But an even unsurmountable of interest that I’m curious how it’s going to be paid down.

My question is, what happens if they simply don't pay, what if they default?

Remember, the money they used to pay for things is the same money you're depositing in the bank every week; loaned money is bank depositor-funded for the bank to earn a return.

Yikes.

In my opinion, this is the fractional reserve banking system wake-up call moment and, in my opinion, the watershed moment for crypto.

But naturally, the road isn't going to be easy or paved with gold (or dollars should we say 😂 ) along the journey to our highly anticipated blockchain adoption moment.

+ the likely rollout of Central Bank Digital Currencies, I should add.

But it certainly will be a journey packed with lifelong lessons, a slight heart attack every few weeks when prices become volatile, and a little faith that in the end, we positioned ourselves as early adopters of an incredible technology that eventually has the opportunity to shine and help redefine and reshape the global economy.

Thus, in the meantime, my mantra is to be grateful for the opportunities and abundances that may come with patience and discipline in holding this asset class.

The decision to invest in crypto is in alignment with my long-term beliefs about where the world is headed, and I have yet to discover a sound argument as to how the world will swerve away from technology and revert back to an outdated system of information, data, and value flow in the era of quantum computing and A.I.

If, at the end of all these comments, you're still curious about what all of this means and if anything has changed, my last comment for you this week is this:

Nothing has fundamentally changed in the markets over the past few weeks, but the appetite for risk assets is improving as central banks begin slowing the pace of rate hikes, which dictate where capital will flow to earn yield.

Despite every negative news article you'll hear, blockchain isn't going anywhere; the government is simply slow to make meaningful changes due to its levels of bureaucracy.

They're slow because, to be quite frank, they're all currently battling massive fires as the old game of money is running out of belief by the citizens of the world at the same time that media and information control is being reshaped by social platforms and A.I technology is moving at the speed of light, to which no government or institution could possibly predict and prepare for.

That's what's currently going on in the world in a nutshell; thus, volatility is to be expected, and disciplined investing is encouraged when prices both fall and appreciate. Know when to buy, know when to take profits, and park money on the side.

Let’s get a thread of questions going below this post, leave a comment or share your thoughts and i’ll keep the discussion going in the thread below this edition.