Crypto Industry Loses $500 Billion – Closing Bull May 13th, 2022
Quick Summary:
In this week’s Closing Bull, we’ll be discussing the big loss the crypto industry took this week. Apple’s dethroning as the world’s most valuable company. Inflation reports a climb in consumer pricing. Disney reports a higher subscriber count than expected. Netflix’s plan to launch ad support to their streaming service, and Last but not least, a fun fact.
Key News This Week:
Market recap
The crypto industry suffers heavy losses
Apple is longer the most valuable company
Inflation reports a rise in consumer prices
Disney+ earned more subscribers than expected
Netflix to include an ad-supported tier to their subscription
Fun fact
Read the Transcript
Hi and welcome to my financial markets’ re-cap for the week.
Happy Friday the 13th, what is possibly the most feared day of the year turned out to be a positive day in the markets.
I have had to wait patiently for an entry into this recent leg of the correction the market is experiencing. The S&P 500 was just 15 points yesterday from a 20% loss from the all-time high created at the beginning of this year. That feels like a long way away now.
So, I am back in the market and I was pleased to see it moving higher today. It certainly feels like a good place for a decent bounce, but this market is wild right now, let’s see, more on this next week.
That was the system update, what is happening in the news?
This week’s headlines have been all over the crypto markets. They have been caught in the cold in this market correction.
The crypto industry has lost nearly $500B this week after two top stablecoins were “unpegged” — and caused investors to panic-sell other coins. One even went to $0 in value.
Some experts say crypto’s sell-off is starting to resemble the dot-com bubble that led to the 2000 tech crash, with sharp panic-fueled sell-offs following years of soaring speculative prices. Not a crazy thought. And just another incentive for regulators to step in a do something about the frenzy.
In other headlines this week Apple lost its spot as the world’s most valuable company. The crown now goes to nonother than Saudi oil giant Aramco. No surprise there given the prices at the pump.
And the big news this week was around inflation reports. Consumer prices were up 8.3% in April from a year earlier. The pace of inflation slipped a bit from March, falling for the first time in eight months — but is still close to a 40-year high. The biggest culprits were food, plane tickets, and housing. Food is up 9% from a year ago and plane tickets have soared 33% year on year. Another symptom of the cost of energy recently.
In tech news, Disney’s managed to avoid the Netflix curse: the Mouse House reported 7.9M new Disney+ subscribers last quarter, more than expected — and a long way from the Netflix’s 200K subscriber loss.
And speaking of Netflix. They reportedly have plans to launch an ad-supported tier by the end of the year. I suppose the plan is to try to entice new customers with a cheaper option. So, you may get to pay less if you have put up with ads.
Fun fact:
What grows in Vegas doesn’t stay in Vegas: Sin City just outlawed grass — and not the kind you think. To save water after years of drought, Las Vegas is mandating the removal of lawns. I suppose that is a way to save water!
That’s it from me, It’s Friday, time to down tools, thanks for watching, and bye for now.
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