Investors expect a big correction or even a crash in NASDAQ.
Here’s how you can move your investments accordingly
The stock markets seem to have been in a swift recovery course ever since the coronavirus induced crash in March and April, nonetheless, there are various worrying signs that show this upping trend might not keep up for too long. Of course, it’s quite clear that stock markets by themselves are not a reliable indicator for the state of the economy. As time goes by, it seems more apparent that the current recovery of the stock markets is owed for the most part to artificial government liquidity injections into the markets rather than the natural effects of supply and demand.
One worrying example of the uncertain course of the current markets NASDAQ having recently closed its worst week since March, with a 0.6% fall. This might not appear like a huge drawback but there are various big-time investors withdrawing for the asset, or waiting until a bigger correction to make a move. Famous investor Paul Meeks, for instance, believes that the NASDAQ might be heading for a correction of at least 20%.
It would be a mistake to attribute the recent increases in the stock markets, particularly in stocks related to the tech industry, to government intervention. It is true that the coronavirus has led to an overall higher demand of technological products in the world. Nevertheless, the course of supply and demand in tech is unavoidably bound to be affected by the economic tensions between the U. S. and China, which have only gotten worse throughout the pandemic. This situation causes a lot of unrest and uncertainty for investors, and if it keeps up, it will have devasting effects on the markets.
As an investor, you need to know the best course of action taking the global economic turmoil well into account. There is an asset in the blooming FinTech industry, with the potential to shield your portfolio from economic uncertainty, as it holds no correlation with the stock markets. This is a new asset class than can not only hold its ground throughout the economic recession, but is in fact expected to benefit from it. This asset is called Kor, and it is a digital asset that represents equities from a private FinTech consortium called Konzortia Capital. Because of its unique properties, Kor has the inherent benefits of a private equity with the liquidity of a public stock.
Kor functions the way it does thanks to Konzortia Capital’s unique business model, in which its subsidiary companies offer various innovative financial services, in a single DLT platform with a secondary market of liquid stock-like digital assets. Because Konzortia’s platform is highly inclusive and aimed at eliminating the need for intermediation and reducing transaction costs, its asset is expected to grow exponentially, while investors will maintain a clear exit strategy. This makes Kor ideal it ideal for those intending to diversify their portfolio, shielding themselves from the imminent drop of NASDAQ, which is bound to affect the totality of the stock markets.