Investors are facing a challenging market with substantial upside potential in stocks but also the highest long-term risk since 1999. Stagflation warnings have been issued since early 2023, with signs indicating a severe and long-lasting stagflationary period ahead. Central banks are trapped between inflationary and liquidity crises, exacerbated by underreported inflation and the rise of cryptocurrency and decentralized finance (DeFi) protocols, which are reshaping financial markets.
This is one of the toughest market for investors:
Stocks have substantial upside potential due to optimistic and irrational investors
But also the highest long-term risk since 1999
It's now more important to actively monitor the stock market's technicals and intermarket signs… pic.twitter.com/rVITl2BCNW
— Game of Trades (@GameofTrades_) May 3, 2024
Since early 2023, I have been warning that #stagflation is coming. The warning signs were everywhere: From commodity price charts bull flagging on the higher timeframes to the unprecedented 'bear steepening' that occurred during an inverted yield curve in 2023.
Below is a tweet… t.co/TqikxFot0f
— SPY Master (@SpyMasterTrades) May 3, 2024