E39: Special Black Monday August ’24 Emergency Edition!

While Luke comes home from front row seats at the Paris Olympics, the market tries to rain on his fur by having a historical meltdown and a global margin call.

We discuss the $VIX volatility index and just how rocky Monday morning was relative to the 2008 financial crisis and the COVID scare.

What caused it all? Krzysztof explains the Japanese carry trade, how it's tied to leverage and why NVIDIA $NVDA potentially seems to have been a trade as much about AI as it was a trade taking advantage of free money loans given out by Japan.

No strangers to the upsetting emotions of extreme market drops — we outline practical steps to take advantage of panic, and to make sure you’re not one of the lemmings getting crushed by fear, and reacting instead of acting with discernment. Have you tried the investing buddy system?

Krzysztof also voices a complaint: Bitcoin $BTC did not pass his test for store of value, while gold most certainly did. Is this a short term issue or is Bitcoin not a true decoupled asset from the global financial system? Badger wants to know how this failed performance will affect Monkey’s BTC stack.

With good tech earnings from $GOOG Google and $AMZN Amazon and Apple $AAPL, why have there been such massive price swings both up and down? It’s another sign the systemic risk is real and that the market at this moment is far from an efficient one. We therefore examine a few fixed income strategies such as short-term Treasuries to help you protect your capital.

Have you checked out Luke’s Axon $AXON deep-dive? It will convince you to pay attention to this excellent company as an antidote to all the fear - but even this one is wildly over-valued, and that's a recipe for danger in a fragile market!

https://x.com/7LukeHallard/status/1818665453738140153

How well do you sleep at night with your investment portfolio? Let us help you take the stress and fear out of investing. You can find the 10 Laws of the Investing Jungle at wallstreetwildlife.com.

Segments:

[00:00:00] - Introduction

[00:04:24] - Black Monday, August 2024 Edition - What Happened?

[00:15:32] - How Can You Protect Yourself?

[00:27:39] - How Was Bitcoin Impacted?

[00:33:35] - Is Today A Buying Day?

[00:36:20] - The Benefit of Having an Investing Buddy System

[00:38:47] - Conclusions

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