‘No Need To Panic Yet’: Here’s Which Coins To Hold Onto And Wait Amid Market Crash

CEO of Professional Capital Management Anthony Pompliano opened up about the panic and fear in financial markets. He introduced Phil Rosen, co-founder and editor-in-chief of Opening Bell Daily.  A major concern raised in their discussion was the increasing focus on short-term financial decisions. This short-termism is seen as a symptom of broader issues in the financial system, driven by inflation and a sense of financial insecurity, leading to more volatility and uncertainty.

Market Panic and Short-Term Thinking

In their discussion, they covered the aggressive drop in the stock market, the factors driving it, what’s happening in Japan, the crypto market downturn, and how individuals can protect themselves from these financial challenges. 

They noted that global markets are experiencing a significant sell-off, with everything from Japan to the U.S. in the red. This started with weak manufacturing and jobs data, and the July report raised recession fears worldwide. 

Phil explained that while everyone is scared, there’s no need for panic yet, pointing out that high interest rates in the U.S., though not historically high, are elevated compared to the near-zero rates of the past, creating structural issues. Phil also discussed the influx of money into the stock market despite these rates, partly driven by the Japanese yen carry trade, and the risks this poses as markets pull back.

Global Sell-Off and Economic Fears

The conversation then touched on the unusual dynamics in the market, where despite the S&P being up double digits year-to-date, fear levels, as indicated by the VIX, are at highs not seen since the Great Financial Crisis or 2020. Anthony and Phil debated whether this market reaction is a timely correction or an overreaction.

Crypto Insights and Long-Term Gains

On the topic of cryptocurrency, Phil explained the importance of understanding and holding long-term investments in assets like Solana and Bitcoin, which, despite their volatility, present opportunities for those with a long-term horizon. He pointed out that the crypto market’s lack of circuit breakers allows it to reflect human psychology and market behavior more transparently, offering peek into asset price movements.

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