markets are in turmoil. people are throwing in the towel.
but before you miss out on the generational run that's coming, read this.
a golden opportunity for the contrarian.
markets sold off friday after a hotter than expected jobs report led people to believe the fed would raise (not lower) rates in 2026.
but if history's anything to go by, the market is wrong. and instead, we're on the verge of a colossal bull run when people expect it the least.
here's why we're approaching the perfect storm for crypto and growth stocks:
- AI / tech advancements are deflationary
despite oil prices spiking over the past year, the yield curve is flattening. this suggests bond markets are pricing in the deflationary effects of AI and tech (AI drives deflation by reducing the costs of production, labor, innovation etc).
- hotter jobs report than expected (172,000 jobs added (vs 85k expected) is good for the economy, not bad
stronger than expected employment is good, not bad. historically, higher productivity and lower labor costs have been indicators of a healthy economy, not an inflationary one.
- geopolitical tensions easing
all signs point towards geopolitical tensions in the middle east easing. once they do, oil prices will plummet, leading to steep deflation (not inflation).
- new fed chair / policy
all the above would give kevin warsh, the newly appointed fed chair, a chance to lower rates and bring back the bull.
the result?
accelerating economic growth, lower inflation and falling rates. the perfect storm to send crypto and high-growth stocks to new all-time highs.