The CEO of a major trading platform has warned that a further fall in the stock market will come in less than a month, and investors should pay attention now.
In a series of tweets on June 11, Yoni Assia, CEO of eToro, predicted a fall in the next three weeks.
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Assia regarding the stock market: The buyer must be careful
Arguing that the recent stock growth was speculative in nature, Assia said a correction should occur.
„There will be a drop very soon (in the stock market), in the next 3 weeks, someone, not sure who, is going to sell/cut their position and bring down the markets,“ he wrote.
„Buyers must be careful. Caveat emptor.“
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The grim warning comes after weeks of unusually buoyant stock growth, which has increased despite ongoing anti-coronavirus measures and mass protests in the United States.
At the same time, Bitcoin Rejoin has become increasingly „decoupled“ from the macromarket’s movements, providing a viable refuge for those wishing to escape the risk.
The S&P 500 gained about 400 points in May and now stands at about 3,200 points, less than 200 points below its position in early March. At the height of the decline, the index fell to a low of 2,232 points.
Meanwhile, Bitcoin has become the best performing macro in the second quarter, with returns of more than 50%.
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„Fueled by speculation“
As reported by Cointelegraph, suspicions about the shares have long been raised by Bitcoin’s supporters, who argue that state intervention in the form of buyouts is creating artificial competition in the market.
Three months after the initial massive drop in March, these interventions are only gaining momentum; the latest one doubled the size of its European Central Bank stimulus plans.
Assia, for his part, stopped to suggest that his warning was financial advice for any investor.
„Just to clarify, I think we (will have) a correction, as this rally seems to be fuelled by retail investor speculation. Historically, these rallies end with a correction,“ he continued.
„On the other hand, money is being printed in record amounts, and interest rates are zero.“