ZB Academy: Three logics of the future investment market

Yesterday, the U.S. stock market experienced a sharp drop in recent months. As of the close, the Dow Jones, Nasdaq and S&P 500 all fell more than 3%. Not only U.S. stocks, but also gold and silver have been dragged down, and the digital currency market is also in a downward state. It can be said that there is a strong positive correlation between the rise and fall of almost all investment markets in the general environment: either everyone rises together or everyone falls together.

The reasons for this sharp drop are very obvious, there are three main points:

First, COVID-19 is raging again. It is so serious that France and Germany may consider implementing a national lockdown for a certain period of time. If such measures are implemented, the economies of Germany and France, which are the locomotives of the European economy, will inevitably be severely affected. Once the locomotives are affected, the European economy will be greatly affected.

Second, the US presidential election is less than a week away from voting. Although polls show that the Democratic candidate is significantly ahead of the incumbent president, in key swing states, the gap between the two candidates is very small. This means that this election may also appear in the 2016 election situation: at the last moment, the election situation has turned around and the current president continues to be re-elected.

The third is that the new round of stimulus plan that US investors have been reporting to the public before has caused panic among investors due to the temporary abortion of the plan due to the bipartisan dispute.

The pessimistic economic outlook in Europe, the confusing election situation in the United States and the gradual pessimistic market sentiment have brought huge uncertainty to the financial and economic markets. Therefore, large funds have withdrawn from various investment markets to avoid uncertainty in order to secure funds.

In fact, the impact of these three factors will greatly benefit the investment market in the long run.

The second round of the epidemic in Europe is inevitable, and the recurrence of the epidemic will inevitably drag down the economy again, which will inevitably once again stimulate Europe to implement a new round of money printing measures.

In the US general election, no matter which candidate comes to power, he will definitely start a large-scale stimulus plan again after he takes office. It’s just that the two parties’ stimulus plans are different: Democrats generally raise large-scale debts and print money directly; while Republicans will make large-scale tax cuts supplemented by printing money. No matter which method, the final result is the same: it still prints money. The US stimulus plan for temporary abortion will surely start again after the election.

In short, investors from all over the world will see Europe and the United States begin to implement new large-scale stimulus plans again in the near future, and all now depressed assets will rise again.

Therefore, it is predicted that all investment markets in the next year will be relatively optimistic. Gold, silver, stock markets, and digital currencies will all have good growth rates.

About ZB Group

ZB Group was founded in 2012 with the goal of providing leadership to the blockchain development space and today manages a network that includes digital assets exchanges, wallets, capital ventures, research institutes, and media. The Group’s flagship platform is ZB.com, the industry leading digital asset exchange. The platform launched in early 2013 and boasts one of the world’s largest trading communities.

ZB Group also includes ZBG the innovative crypto trading platform, and BW.com, the world’s first mining-pool based exchange. Other holdings include wallet leader BitBank, as well as exchange brands ZBM, ZBX and Korea’s Bithi.

Industry intelligence and standards are headed by the recently launched ZB Nexus who embody the core values of ZB Group and open-source their reports and analysis for the public.

Learn more about ZB Group by visiting www.zb.com.