The Covid-19 pandemic that had its effects on the health and customs of people during the year 2020 and 2021 came to people's pocket and as a result of the financial markets in general during the year 2022.
The monetary expansion policies that most of the world's states have made to sustain, both household income and corporate wages, have delayed the economic effects of the brutal slowdown of the international gross product caused by the suspension of activities and almost total paralysis of the usual movements of people.
Like the human body, which, when it feels threatened, produces substances that enhance its reflexes and abilities (such as adrenaline), and after the episode, produce the famous “post traumatic states”, inflation with recession, called “stainlation”, is the process through which economic activity and finance, purge the effects of a supportless monetary emission, accompanied by the concentration of wealth in few hands.
Almost automatically and directly proportional we can observe how the relaxation of isolation measures and the reduction of assistance programmes meant falls in the prices of financial assets.
For example, the Nasdaq index began the year at 16,395 points finishing around 10,000, representing a drop in the indicator of more than 40%.
The S & P 500, which in 2021 surpassed wheel after historical maximum wheel, began the 2021 around the 4.667 points to reach 2022 to less than 3600, a 23% drop approximately.
While on the side of Dow Jones, the extremes within the year were between 36,231 and 30,000, representing a 18% decrease.
The same happened in terms of sovereign currencies, the ones that, in their vast majority, had ceded to land in front of the US dollar.
The euro is devalued more than 12%, even losing this psychological resistance which is parity with the dollar.
Not to mention the British Pound who took a $1.34 to a minimum of 1.08.
Digital assets did not escape these circumstances.
The main cryptocurrencies yielded between 35% and 70% the quotes in relation to their historical maxims.
The Bitcoin that had reached at the end of 2021 values higher than the $68,000 per unit began in 47,000 in the year 2022, reaching values lower than the $19,000 in some moments, something that allows us to conclude that for now this would be your apartment.
Separate point were the Earth and Moon cases that demonstrated that, although you can rely on the algorithms, which carry the data and make the decisions to enter or exit are still people.
With regard to other digital assets, the digital art market expressed in NFT format was harshly punished by relegating both the interest of investors and the sustained increases in their evaluations.
The metaverses, who promised during the year 2021 to be a star in 2022, received a very hard blow that had made reality for the virtual world. From hundreds of projects that were out of business, to the most advanced developments like Descentraland or even Meta, the Facebook proposal that led to the company's name change, did not have the expected responses and the market punished them with losses of more than 70% in their evaluations.
In conclusion, digital assets passed a very important test in 2022.
Although it has lost, for now, the battle for being considered “anti-cyclical”, that is, an alternative of value protection against the avatars of the traditional financial market have consolidated a market and, mainly, they have got the attention by regulators almost all over the world.
This is a real success, as both in the developed world and in the rest, it advanced during 2022 in normative frameworks and security measures and integration with the rest of the traditional markets.
It was the institutionality and legal framework, the main questions of digital asset detractors and the advances produced during the 2022 have meant a small step towards economic results, but a great step towards market consolidation.
Regarding markets in general, the 2022 could be summarized as the year of the “fly to quality”, or fly to quality.
All indicators reflect this, from the value of the US dollar, the main international exchange currency, which has revalued against the rest, to the public supply actions, in which the most traditional markets, represented by Dow Jones suffered considerably smaller losses than those of the most advanced, such as Nasdaq.
Investors and hobbyists will generally conclude a 2022 poorer than they began. The loss of value of assets is reflected and will reflect in lower purchasing power, reducing the growth expectations and profitability of companies and nations.
It is not possible to put aside international conflicts, such as the war between Ukraine and Russia with the impact that this has produced and will produce in the supply of food products and the energy market, both of which transcend the lives of people and the rest of the goods and services offered.
After years when assets were assessed on the basis of the faith that investors had in them, 2022 and probably also 2023, it is time when the traditional foundations become the criteria of asset analysis and evaluation.
The year 2023 will be discussed with each other, by checking the assumptions that have affected the price of the assets in the past, are fulfilled (lower sales and margins), they will be punished again (managing a vicious circle that it is very difficult to leave) or if the future will be better.
The economy is a succession of events about self-contained prophecies.
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