Flash Update: Macro, Crypto, & Terra

Topics

• Market Update – Macro, S&P500 & Bitcoin
• Terra Update – LUNA/UST/ANCHOR

Market Update

Souring sentiment and worsening macro headwinds have exacerbated the selloff in equity markets, with the S&P 500 now trading at its lowest level in over a year. Analysts are slashing price targets at their fastest pace in two years as many past high-flying growth stocks find themselves 30-40% off their highs. Gone is the supportive backdrop of the 2010s that propelled asset prices to new heights, instead replaced by surging consumer costs and deteriorating financial conditions.

Consumers and investors alike are facing the highest CPI prints in 40 years. The proliferation of higher consumer prices has made its way into everyday conversation, which has narrowed the Fed’s fight to just one enemy above all: inflation. And their latest rhetoric implies little will stand in their way to stop it. Early rate hikes have not yet had an effect on inflation, though they will once demand really starts to slow. The narrative of a vibrant and growing economy still exists – at least to some degree – if you look at labor shortages alone. In reality, rumors of layoffs have started to circ