- In spite of Thursday’s stock market plunge, traditional and non-traditional hedges like yellow as well as bitcoin weren’t immune from the sell off.
- Technological innovation stocks led a steep sell off in the industry, with the Nasdaq hundred index down almost as 5.5 % in Thursday afternoon trades.
- Gold traded down pretty much as one %, while bitcoin fell 6 % on Thursday.
- Usually, investors appear to these non traditional assets to provide shield during stock market sell offs.
Technology stocks led the market decline, with the Nasdaq 100 index down as much as 6 %. Mega-cap tech winners as Apple, Amazon, and Microsoft fell 8 %, 7 %, in addition to six % respectively.
Meanwhile, the S&P 500 fell as much as four %, while the Dow Jones industrial average fell more than 1,000 aspects for a loss of 3 %.
The high technology-driven sell-off in the stock market spread to non-traditional and traditional portfolio hedges like bitcoin and orange.
Both gold and bitcoin have just recently been bid in place by investors anxious about the developing balance sheet of the US Fed and its recent policy overhaul that will likely lead to greater levels of inflation.
Very last month, gold touched all time highs during $US2,089 an ounce, while bitcoin arrive at a multi year high of $US12,473.
But that historical correlation did not play out on Thursday.
One particular conventional asset type that did provide protection to investors from Thursday’s market sell-off was bonds. The Bloomberg Barclay’s US Aggregate Bond Index traded up pretty much as 0.20 %.
For all the talk with Wall Street analysts that the favorite 60 40 investment portfolio which balances stocks & bonds is “dead,” it’s alive and well today.