Is crypto going to keep crashing in 2022 is this going to be a very brutal year for the markets well we have to take a look at the macro picture to try to understand what is happening in markets right now what is the attitude of the average investor as well as the institutional investors towards the market at this time so in today's.
Video i'll be exploring all of that this is a an info packed video full of some very important stuff that you need to hear as an investor right now so make sure to watch until the end to get all of the goods my name's lark every day i make videos talk about cryptocurrency investing if you do like that topic you like stay up to date with what is.
Happening in the cryptocurrency market then a quick tap on the thumbs up button let me and youtube know that would be pretty gosh darn cool by the way every single week i make wealth masteries the cryptocurrency investor report we are constantly seeking out new opportunities in the markets and in spite of all the insanity.
We've seen in the markets there are still ways to be making money from token sales to airdrops to new d5 farms to hot altcoins nfts and much much more you can sign up for free using the link down below in the description now let's go ahead and get into this topic first we need to talk about the price of oil as jim bianco points out.
Here not every recession is led by a 50 rise in the price of crude oil but every 50 rise in crude oil has led to a recession well and that is exactly what we are seeing right now we are seeing a mega rally in oil the exact kind of mega.
Price rally for oil that has historically led to a recession since the 1970s that's something to consider isn't it well recession potentially coming now on average uh recessions last for around 11 months so during that time obviously a lot of.
Tricky times for investors i want to share some of the thoughts here from raul pal as well he said of all the crises i'd witnessed this feels most like the asian financial crisis and the russian default of 98 it starts as a slowdown morphs into a larger event and ends up as a full liquidity crisis so it's very different but.
Very uh horrifically similar in other ways in particular he uh he pointed out that during that time we saw the s p 500 down by 25 percent europe went down by 35 asia down by 70 largest recession on record russia down by 85 percent the largest default in history hedge funds blew up.
Banks blew up and the fed had to step in as a credit uh credit and bond markets seized up we are heading for mass financial insanity right now with everything that is happening in the markets and look maybe all that doesn't come to pass maybe this gold sorry maybe the oil price explosion.
Is not going to indicate a recession this time but a lot of people are saying that's exactly what is going to happen that the us economy is looking at a recession that the global economy is looking at a recession that of course is not awesome for markets is it no of course it is not here is um.
Why the impact of russia's war may linger for some time and why investors should be cautious and yes i think that with everything happening right now this is a time for caution see when it was just the fed and what that effect was going to happen in the market is like well you know that's.
Manageable in expectations right but now we have so much going on definitely a time for taking a more cautious approach in this market we have an analyst here from bank of america saying this is clearly not a temporary risk off event that the economy and markets shrug off and return.
To business as usual what we are seeing right now is a very big global event with the prices of oil skyrocketing inflation skyrocketing it's absolutely nuts when you start to put all of the pieces together we're going to put some of those pieces into the puzzle in today's video obviously but it's a very big and complicated picture.
And unlike other events where it just be oh it's a quick little dip and then we bounce back up it's all cool this one could have much more lasting impacts on the global economy now right now we're looking at a massive collapse of the russian economy potentially and just to give you some.
Idea of the scale of what we're talking about here so lehman brothers which you know was a big part of the 2008 financial crisis evergrand which everybody was freaking out about just a few months ago we're both much much smaller than what is happening in russia right.
Now uh cberbank alone which is the biggest bank in russia has a or had i should say obviously the stocks are down dramatically now but pre-crash it had a market cap of around 80 billion dollars then of course we have to consider the entire russian stock market which was around 700 800 billion.
Dollars 80 percent of that is owned by foreign funds all of which are now forbidden by russia's central bank to sell that's some crazy stuff man that's some crazy how does all of that unwind you know just the russian equity situation is a mess then of course we have to bring in the.
Oil the inflation all this other stuff start to realize it's very complicated and messy picture uh gabor box here he pointed out the director over at vanek by the way he pointed out that of course we've seen 12 trillion dollars printed in the past two.
Years major central banks all over the world have been printing like crazy absolute crazy 12 trillion dollars just inflation has gone nuts because there's been so much money just dumped into the market now of course we have this just flood of money that's.
Come into the market and we also now have all these issues around supply chain issues economic slowdown they're the russia situation and what's going to happen to their economy all these companies pulling out has that how's that going to affect the bottom line of all these companies you know mcdonald's pulling.
Out of uh russia that represents you know a couple percent of their total global business and on and on and on starbucks how many starbucks you know what what effect does that have on the international companies uh total revenues q4 our sorry q1 revenues for a lot of these companies are probably going to be hit.
By pulling out of the russian market so there's a lot of things coming into play here bitcoin fundamentals remain strong says the co-founder of glass node but the macro environment is driving the price we can bring this up here fed faces inflation while 10 and two.
Year bond spreads are entering into the warning zone again just behind my head here we are heading down into the warning zone and uh getting close to the recession zones we're actually entered into the warnings and getting close to the recession zone.
So another indicator showing that at a macroeconomic level things looking pretty gosh darn cook then of course we have the federal reserve and the rate rise and we discussed this a few times so i'm not going to go over the numbers here again with you.
But just real quick the last five times the federal reserve increased the interest rates every single one of those times the market dumped and it took on average 18 weeks for the price to get back to where it was.
When the rate hikes were announced not talking about new highs just to get back to the baseline of where we were before the federal reserve started raising interest rates the good news of course is that after a year a year after interest rates were raised we saw stock markets in most of these.
Cases actually finishing on average seven percent higher that being said that's you know that's next year that's next march this time right what will happen between now and then well anybody's guessed with all the craziness going on at the macro level look.
There's a lot of stuff going on here a lot of moving parts a lot of things that you cannot control as an investor this especially if you're a new investor you haven't seen these kind of market conditions before this can psychologically be a very difficult time fear is everywhere everybody's freaking out you know they're freaking out on the.
Tv they're freaking out in the media youtubers are freaking out people are freaking out on twitter any rallies that we see tend to be quite short-lived and followed by yet another dumb psychologically beats you down the gains are few and far between although they are still out there they are still out there would like to say that.
Seeing red in your portfolio all the time also not the most uplifting experience is it but just remember none of this lasts forever the bears will hibernate at some point the uh price of oil will normalize after some time recessions end um stock markets recover the russian.
Economy will do whatever the heck the russian economy does eventually the war in ukraine will end all these things will find their end at some point and markets will recover people become optimistic again money will start flowing in.
But right now we are in a period of extreme uncertainty in the markets and as we know markets freaking hate uncertainty man it's one thing markets definitely do not like and we have a lot of uncertainty like i said if it was just the fed that would be manageable in terms of our expectations for what could.
Or couldn't happen with all the other stuff going on you start to realize there's a lot of moving parts here that make the investor landscape one where caution is required at the moment so play it safe we have all this stuff going on.
You know don't feel the need to yolo your life savings in on the next dip steadily accumulate solid projects for long term investing that is of course how money has always been made in the cryptocurrency markets these bearish periods recessions crashes all this stuff that's when the real.
Money actually gets made in the cryptocurrency markets it doesn't get made buying the tops it gets made buying the bottoms accumulating during periods of fear and then of course taking profits when we do get a market pump once again which we will get they always come it always recovers so it's just a game of patience.
Now anyway anyway i know some of you guys don't like it when you know i make videos that aren't just pure freaking opium but uh look realistically this is how i see things playing out right now in the markets so let me know your opinion on all this down below in the comment section thanks so much for.
Watching today's video and peace out till next time you