Prepare for a big bear market
The market continued to fall, triggering deep uncertainty about the market outlook. Large institutions such as Jump and Wintermute have encountered problems one after another, further exacerbating market volatility. Well-known projects such as SBF, Luna and Sanjian of FTX are also facing difficulties, indicating that the market adjustment may be more severe. The increased pressure on the stock market and real estate industry may have an impact on the broader economic situation.
Some people believe that the problems in the Chinese market reflect institutional negative factors, but this may only be the result of the interaction between market cycles and external factors. In the Hong Kong stock market, some companies with operating difficulties have also emerged.
Decentralization does not always protect retail investors, and sometimes becomes a safe haven for large institutions. Big dealers are more vulnerable to manipulation and influence. Although hedge funds have provided liquidity and boosted the bull market in US stocks, they are now facing the challenge of a liquidity crisis. If the economy declines sharply, leveraged funds may face the problem of difficulty in exiting in time, exacerbating market turmoil.
At the political level, the economic crisis may affect the support rate of the Democratic Party, and internal interest groups will also be impacted. The benefits of IT policies have gradually faded, and policy hype has raised questions. Some high-level repurchase behaviors may raise concerns about fairness.
Some believe that political forces may respond to the current economic difficulties through specific means, such as targeting intensive industries or institutions such as real estate, but this strategy is highly risky and complex.
As market conditions change, timely adjustments and strategic flexibility are particularly important.
