Key insights
- Asian markets are down, and the UK PM is holding an emergency economic meeting. The IEA is discussing releasing more oil stockpiles amid a severe oil crisis. China and other nations have been decreasing US bond holdings, potentially increasing US inflation. Escalating war tensions and corporate debt concerns add to market uncertainty. The author suggests caution, advising against selling but recommending careful buying, anticipating a potential 20-30% drop in AI stocks.
I woke up middle of night and for whatever reason I decided to check my phone. I’ve been looking through it since last 30 mins and it looks like various Asian markets are falling. UK PM called emergency meeting to discuss economic concerns with his people. IEA said oil crisis is very severe and is in discussion with Asian and European countries to see if more oil stockpiles should be released. As of this post, oil price sits at $100.56 WTI and $108.80 Brent.
I remember reading China and few others have been decreasing US Bond holdings and have sold off recently which will increase US inflation (could be positive or negative for long term investors depending on how you see it). In addition to this, I remember reading something corporate debt crisis but not sure how or if it will materialize though it does create some fog over economy future.
All sides involved in the War seem to escalate hour by hour so I do not see any deescalation within next week.
Apologies for sounding bit Alarmist but this does not seem good time to jump back into the market. In fact, I am planning to stay out of it until after I see a sharp drop. But I do not think it’s a good time to sell too if you are already invested. Specially if you are new to it and do not know how to identify trends. DO NOT SELL BUT BUY WITH CAUTION.
I am curious to know how everyone else reacting to these current events? Do you think 20-30% drop coming specifically in AI? Would it be fair to say this might create a good opportunity for AI stock correction as a lot of them are overvalued?
Edit 1: Let’s keep politics out of this post. There are other subreddits for it. Thank you.
Edit 2: looks like me asking to keep politics out of it has back fired. I am just tired of it tbh but go for it if you all feel it is relevant here. I would at least keep it constructive instead of sharing your personal opinions of certain head of state somewhere in the west of the Atlantic.