Imminent DOW Meltdown

[DroidR17A]

Following yesterday's announcements that the DOW has reached 25000 for the first time, numerous analysts are warning investors about the possibility of a major "meltdown" and "exponential risk" within the next 6 months to 2 years.

How do you think a crash will affect the crypto markets?

Will cryptos be a safe haven?

Should investors sell traditional equities and move funds into cryptos?


http://www.cityam.com/278218/jeremy-grantham-predicted-last-two-bubbles-warns-stock

https://www.express.co.uk/finance/city/900611/global-stock-market-overpriced-US-UK-Managing-Partners-Group

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[DroidR17A]

So...doesn't look like anyone took it seriously when I posted this a few weeks back.

Right now we're seeing a "correction", however nobody knows where the real bottom will be, and whether the reprieve will be long or short term.

If the major indexes tumble, do you think cryptos will become a safe haven?

Do you hold both traditional (securities, commodities, precious metals, etc.) and digital assets, and how would you disburse your holdings in the event of a major meltdown/try to plan ahead?

[HabBear]

If the major indexes tumble, do you think cryptos will become a safe haven?

No. The majority of people that invest in the stock markets don't invest in cryptocurrencies, in fact most of those people probably still think cryptocurrencies are a joke. There's no correlation between these two, let along causation.

Do you hold both traditional (securities, commodities, precious metals, etc.) and digital assets, and how would you disburse your holdings in the event of a major meltdown/try to plan ahead?

I hold securities and commodities and digital assets. As the US stock market falls apart I plan to buy into it with cash I have on the sidelines. But I'm buying stocks and digital assets every single month (more frequently actually).

[DroidR17A]

If the major indexes tumble, do you think cryptos will become a safe haven?

No. The majority of people that invest in the stock markets don't invest in cryptocurrencies, in fact most of those people probably still think cryptocurrencies are a joke. There's no correlation between these two, let along causation.

Do you hold both traditional (securities, commodities, precious metals, etc.) and digital assets, and how would you disburse your holdings in the event of a major meltdown/try to plan ahead?

I hold securities and commodities and digital assets. As the US stock market falls apart I plan to buy into it with cash I have on the sidelines. But I'm buying stocks and digital assets every single month (more frequently actually).

Good plan, if you have the cash on hand. The old adage "buy the dip" holds across all asset classes.

[jefbigbob70]

As the practice showed, this money did not go to the crypt. Most likely these people will keep the money in cache or if the amount is large in the US treasuries (or TIPS).

[Igor Pav]

I think the recent dip in the DOW and rise in crypto is evidence that these are totally uncorrelated assets which is the hold grail for investors. I think the dow melting down will only have a positive effect on crypto. Everytime there is uncertainty in the world we usually get a huge increase in the value of bitcoin. Its almost as if its a hedge against the elites.

[Lancusters]

Of course, this will affect the cryptocurrency market. Capital is already leaving the stock markets. Perhaps one of the reasons for the collapse of the Dow Jones index is associated with the flow of capital into the cryptocurrency. The US economy depends on the demand for the dollar. This demand is declining. The crisis in America is a matter of the immediate future.

[pvk444]

Of course, this will affect the cryptocurrency market. Capital is already leaving the stock markets. Perhaps one of the reasons for the collapse of the Dow Jones index is associated with the flow of capital into the cryptocurrency. The US economy depends on the demand for the dollar. This demand is declining. The crisis in America is a matter of the immediate future.

Any flows from DOW to crypto, at present, is at best minuscule. The Dow would need to drop significantly more for stock / bond investors to consider seriously the crypto markets. Cryptos are still way too volatile to count as anything but gambling, and there are not enough hedging products to be a true alternative asset class.

That said, I can see Dow plunging back to low teens. Never, in the entire history, has so much growth in the Dow been financed by all forms of credit. The levels are unsustainable, and just a minor correction in the economic output, could easily trigger an avalanche of yet-unseen proportions. When (not if) that happens, and if cryptos are still strong at that point in time, then we will see some major redistribution.

[okala]

Many people that are stocks traders do not invest in cryptocurrency and some of them may do transfers they Dow to bitcoin or others coins. Therefore, I believe that this is going to affect bitcoin and altcoins positively. I believe that good days are ahead.

[Reez]

Not sure what this means, don't scare me like this.  Bitcoin better be used as a safe haven then.

What do the people say who predicted the 2008 stuff? I trust them more.