What’s going to happen to world markets in 2018?
Everyone, who is at least a bit familiar with principles of work of financial markets, understands that 2018 is a year of surprises. Sharp falling of cryptocurrencies, volatility at stock markets and forex… We contacted Russ K. from Wall Street to figure out what’s happening to the world’s financial system today.
John Auther: Hello, Russ! Thanks for accepting to chat with us. Guys from Wall Street mention quite often the big storm. What do you think about this?
Russ K.: Hi, John. Guys from Wall Street are never mistaken (laughs). It’s 2018 today and I think you understand very well what it means — a new global financial crisis is unavoidable. Such quakes happen approximately once in 10 years. Let’s remember what happened in 2008. Collapse of the mortgage market in the USA, which provoked the beginning of the global financial crisis. In 1998 crisis started in Russia and Asia and gradually spreaded all over the world.
Ten years before — in 1987 — USA faced Black Monday, when stock exchange indexes fell down rapidly. Ten years earlier there was notoriously known 1968 — and so-and-so on each 10 years early years of 20th century. I’ve no doubts that next quake is going to happen very soon. It’s rather to say that we are already watching its beginning.
John Auther: All this sounds very sad, what consequences of the new crisis should be expected?
Russ K.: As usually — unemployment, bankruptcy of small and medium business, government support for big corporations (although not all of them will stay alive as well). This means reforming of pensions and social securities — cause money for rescuing the elite will be derived from those spheres. Yes, those will be hard times.
John Auther: So, everybody will suffer?
Russ K.: The majority. But there also will be opportunities to earn millions! You know for sure Warren Buffett, John Paulson, Jamie Dimon — they made huge capitals during crises.
John Auther: There are just few fortunate traders like them. Most have lost their funds. What was the secret of success of John Paulson? He had insider information?
Russ K.: Nobody will tell you that (laughs), I mean about using insider information. But I think it’s not the only reason. You know very well that market moves against the crowd. One should feel the mood of the community, seek for logical disorders between the information which is spread in official news channels and real facts, which are in free access as well. But 99% of people (including ordinary traders) do not wish to think. They follow the crowd and naturally, lose.
John Auther: Can you give our readers some advises?
Russ K.: Well, usually I don’t, but, I think I can. Do must have heard of the law of energy conservation?
It says: the weight of substance reacted is equal to the weight of newly formed substance. It works pretty well also in finance. Which markets grew and which fell this year? Where from, and the main thing — to where will money flow when we have next collapse of stock markets?
John Auther: Cryptocurrencies — is that is what you want to say?
Russ K.: Movements of this market are similar to NASDAQ and DotCom market. Look at the chart and make conclusions.
John Auther: That means — now is time to buy?
Russ K.: Not only that. Trader has got two tasks: to sell an expensive asset, and buy the cheap one. Time of global financial quakes — means enormous earning opportunities, when you open short positions for one group of assets and long positions for another group of assets.
John Auther: Is it so called diversification of risks?
Russ K.: Yes of course. The one who looks at the situation from global point always wins. There are no isolated economics, all big money are corresponding. That’s why earning really huge money is possible only in case if you work with all markets at the same time.
John Auther: Can you give us couple of examples?
Russ K.: There are hundreds. I know guys, who made more than 1 mln$ of $10000 in one year. They were not whales or even professional traders. But they were clever, thought with their own brains and saw clearly the whole picture.
John Auther: Have you got an idea about approximate time of coming collapse?
Russ K.: I think it has already started. But how long they will restrain it — hard to say. I suppose that we’ll see the culmination during 6–12 months.
John Auther: Thank you for such an interesting opinion, Russ. Do you want to tell something to our readers?
Russ K.: Well, it has sense to make one warning: although I’m sure that cryptomarket will definitely grow itself, many unnecessary financial instruments and services will be cleared off. It quite obvious that 99% of so called “shit-coins” will disappear (as it was during DotCom period). And an investor’s or trader’s task is to find Amazon or AliBaba of cryptomarket.
It’s harder with providers of financial services, I mean exchanges. As you have noticed, institutions enter the market actively (NASDAQ for instance). And they don’t want rivals. Therefore, I suppose that in the near future we’ll see the end of many popular crypto-exchanges, even from TOP-20.
John Auther: Wow! Where “mere mortals” can trade than?
Russ K.: Finally all trading will be made through brokers. There is no mechanism for licensing crypto-exchanges yet, and it’s going to be a long way to develop it. Financial markets are used rather to brokerage system, which is regulated and provides some guarantees to traders. Besides, broker platforms let to trade at all markets simultaneously. And this is very important, as I already have mentioned.
John Auther: But this contrary to the whole concept of “free” crypto economics.
Russ K.: You must be joking
Concept of free crypto economics is not related to platforms where CRYPTO assets are traded. Once you’ve got BTC at your cold wallet, you can transfer it or pay for services, without third party control — this is real freedom. Concerning trading — here nothing changes, exchange always acts against you. So, don’t be scared by changes, catch your “wave” and collect profit! Good luck!
We’ll, it was a very cognitive talk, we hope it will help our readers to earn during such difficult times. As always, I finish my article with useful advice. I compared several brokerage companies, where one can trade crypto.
In my opinion the most interesting conditions are presented at LH-Crypto. Platform opens access to all markets, provides leverage up to x500 and oriented for cryptotrading. Besides, here you can find unique trade pairs such as BTC/GOLD — this might become a very profitable asset in the nearest future.
Good luck to everybody and see you soon!
