It's the End of the Pandemic Rally As We Knew It

Real Vision: Finance & Investing

Real Vision

Investing, Business News, News, Business

4.1 • 1.1K Ratings

🗓️ 22 January 2022

⏱️ 35 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Cryptocurrencies are crashing, stocks are tanking, bonds are rallying, and central banks are diverging. That all spells “risk off,” as the pandemic rally has surely come to an end. Is there an “all clear” moment coming? When should we prepare to buy this dip? Raoul Pal joins the conversation for an update on what’s happening in the crypto space. And Maggie Lake talks with Jared Dillian, editor of The Daily Dirtnap, about the view from 30,000 feet and what it means for risk assets, including Bitcoin, Netflix, and others that benefited from across-the-board accommodative monetary policy over the past couple years. Want to submit questions? Drop them right here on the Exchange: https://rvtv.io/3KwXMDB Learn more about your ad choices. Visit podcastchoices.com/adchoices

Transcript

Click on a timestamp to play from that location

0:00.0	Hello, and welcome to the real vision daily briefing. It's Friday, January 21st, 2022.
0:10.1	I'm Maggie Lake here with Jared Dillion editor of the daily dirt nap news letter. Hi,
0:15.3	there, Jared. Great to see you. Hey, great to be back. Thanks so much for taking the time.
0:21.0	Pretty volatile week end of week trade with recess. That's really taking it on the chin,
0:26.5	the NASDAQ down over two percent. I mean, it's sort of selling off so quickly. We have to check
0:32.1	where it settles, but it looked about two and a half percent. Last, I checked well below
0:36.8	1400. Cryptocurrencies also slam lower Bitcoin down to 10 percent below 40K. Ethereum down 14
0:45.4	percent. It's pretty ugly out there. Before we dive in with you, real vision co-founder
0:50.3	Rao Powell has been watching the market action in the crypto space and sent this update.
0:55.2	Let's have a listen. So a little quick update for real vision daily briefing. Obviously crypto
1:00.6	markets going well today to the downside. I mean, this has been going on for a while. How
1:05.3	I try and put this in perspective is that when you're trading a 70 volatility asset class,
1:12.1	you're going to see 50 percent draw downs yearly, maybe even two times a year. Really, it's
1:18.2	been over the last four or five years. It's been every year. We see one of these. It feels
1:23.4	like that is now a normal function. I also noticed how little people are freaked out by it, which
1:27.4	I think is a really good thing. I think people are starting to understand not using leverage, not
1:31.4	having too much size and understanding the long-term time horizon. We are seeing liquidation,
1:37.4	and a lot of this is based around the thesis that the Fed are going to tighten and therefore
1:42.4	risk assets are going to fall. I went back and tested that hypothesis. Really, when you go back
1:47.7	and look at the 2010 period to 2016, the Fed kind of stopped QE, the balance sheet ran off for a
1:54.0	bit, then they had to restart QE again, because the economy takes wild to get traction. I think
1:58.2	that's going to be the case this time around as well. But even when they do height grates and even
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from Real Vision, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of Real Vision and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.