The US Housing Market
The US housing market is currently in a strange position, because it is basically frozen.
Since 2022, the interest rates for mortgage loans went up so fast that people who were paying 3% mortgages a year ago, are not able to sell their homes and flip into the current 7% to 8% mortgage loan.
Meanwhile, home prices have stayed very high and interest rates have soared such that everyone else who wants to buy a home cannot afford a home. Now, you have these two sides and no one’s meeting in the middle to create a transaction. You will need a buyer and seller willing to meet in the middle and that is not happening on right now.
For the people who bought their house for the long term, they are not worried that the house is going to lose value in the next two years because of economic conditions, because they bought to live there for the long run.
The US Stock Market
In the stock markets, the same concept is playing out. People who get afraid and people who trade according to the news usually sell the worst possible moments. An example is October 2022, many people sold their holdings and the prices shot back up and it almost went all the way, almost to the previous all-time high.
It’s been proven that the people who just stay in the stock market make the most over the long term and not the short-term traders or people who try to time the market and jump in and out of market. Hence it is advisable that an investor should stay for the long haul as much as possible. It is also advisable to have long-term investments in low-risk markets.,
Swing trading is a different strategy. These swing traders take a small percentage of their portfolio and trade with it to make it grow. Very often swing traders also trade with sizeable financial leverage. It is a strategy that is best left to experienced people and not for the regular investors.
The Cryptocurrency Market
In June 2023, Bitcoin set the stage with a breakout candle. This move was followed by a confirmation candle in July, signalling an upward trajectory and reinforcing its newfound support at $29,000. However, the optimism was short-lived, and Bitcoin’s value dip to $26,000 by the end of August. The next strong support level is expected to be at $23,000, failing which the next significant level at $20,000 looms on the horizon. The Bitcoin RSI has lost the support of the 50 level. However, Bitcoin is holding support of the moving average.
The crypto market is at a crossroads. With Bitcoin closing far below $29,000 in Aug 2023, the $29,000 level has become a strong resistance level. The Total Market Cap alos stands at a crucial juncture, which needs to hold its historical trend line as support, otherwise it can become resistance for many months. A challenging landscape also emerges for the Altcoins. If Bitcoin fails to hold its support levels, the Altcoins are likely going to perform worse. The coming month will be pivotal in determining the trajectory of the entire crypto market.
