Bitfinex Alpha | Markets Rally on Inflation Relief, but Beware of False Dawns

Bitfinex Alpha | Markets Rally on Inflation Relief, but Beware of False Dawns

Cryptocurrency Investments Mix
June 7, 2022 by Admin
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What effect does monetary inflation relief have on markets? Bitfinex Alpha | Markets Rally on Inflation Relief, but Beware of False Dawns The markets reacted with a wave of relief as the latest inflation data finally confirmed what analysts had been forecasting for some time: inflation is less of a threat for global markets. It
742 bitfinex alpha markets rally on inflation relief but beware of false dawns

What effect does monetary inflation relief have on markets?

Bitfinex Alpha | Markets Rally on Inflation Relief, but Beware of False Dawns

The markets reacted with a wave of relief as the latest inflation data finally confirmed what analysts had been forecasting for some time: inflation is less of a threat for global markets.

It has been a turbulent few weeks, as investors have had to grapple with the fallout from the recent US-China trade war, a sharp rise in the Fed’s benchmark rate, and the possibility of further rate hikes. But with the news that inflation is now under control, it looks like investors were finally able to breathe a sigh of relief.

Following the news of the inflation abatement, the markets rallied strongly, with the S&P 500, Nasdaq, and Dow Jones Industrial Average all recording gains for the week.

The rally was led by tech stocks, with the FAANG shares, Amazon, Alphabet, Apple, Facebook and Netflix all posting gains. Energy stocks also surged, while Warren Buffett’s Berkshire Hathaway surged close to 4% over the course of the week.

It appears that investors are now beginning to look past the current turmoil and back to fundamentals, although some caution still appears warranted. After all, it was not too long ago that financial markets tanked on the back of rising inflation concerns. Thus, it is important to bear in mind that there is no guarantee that this false dawn will continue for the foreseeable future.

Ultimately, the key for investors will be to identify high-quality stocks that can weather the economic storm. The Bitfinex Alpha stock screener is an excellent tool for investors to use in this regard. Our screener allows users to utilize a variety of data points – including price, market capitalisation, and sector – in order to identify stocks with strong fundamentals and a history of growth.

It is clear that the markets are finally starting to stabilize, but investors should be aware that waves of headwinds can emerge from any direction. Taking the time to do the necessary research and use the right tools can help reduce the risks of suffering financial losses in the event of sudden market reversals.