5. Summary
Although the long-term outlook appears bullish, the market is currently experiencing turbulence tied to Chinese DeepSeek AI. Its DeepSeek-R1 reportedly offers OpenAI-o1-level intelligence at 90% lower costs, sparking concerns about its potential impact on Nvidia and the broader AI sector—a major component of the S&P 500 and Nasdaq. This has led to a decline in futures, spilling over into crypto markets, despite no direct impact on digital assets themselves.
From our perspective, this short-term panic could, in the worst-case scenario (a larger stock market drop), trigger money printing that would ultimately fuel our rocket. Our long-term projections remain unchanged, so we don’t plan to alter any strategy changes at the moment. We will wait a little longer to see how things play out but for now it seems like the market is somewhat overreacting🤦♂️
P.S.
Overnight Reaction to DeepSeek:
- Arm, $ARM: -5.5%
- Nvidia, $NVDA: -5.3%
- Broadcom, $AVGO: -4.9%
- Super Micro, $SMCI: -4.6%
- Taiwan Semi, $TSM: -4.5%
- Micron, $MU: -4.3%
- Qualcomm, $QCOM: -2.8%
- AMD, $AMD: -2.5%
- Intel, $INTC: -2.0%
US markets are on track to erase over $1 trillion of market cap in Monday's session.
@Reytrade To God and not just to the moon 🌚if the negative scenario that we talked about every 18-20 years regarding stocks and commodities does not happen. Remember, we are not playing games, we are making games, managing risks, and looking at possibilities! ♥️🙏