News & Insights
July 30th, 2021

Monthly Movements – July 2021

Looking  back  on  July,  several  key  events  occurred  and  are  worth  watching  going  forward.  Here’s  a  couple  that  stood  out.

Crackdown in China

China recently put a dent on the booming educational tutoring industry, sending many high-flying stocks plummeting. This occurrence is not the  first  time  we’ve  seen  China  flex  their  regulatory  muscle  (see  the  Alipay  IPO  failure  in  2020),  and investors are currently trying to figure out if this most recent drop provides a long term buying opportunity for these promising businesses, or a stern warning that the Chinese state is always in power when it  comes  to  their  markets.  This  comes  after  an increasing push to  look  to  China  and  other  Asian  emerging  markets  as  areas  of  long-term  opportunity and  value  in  the investing world. The largest growing middle class plus ever  increasing  technology  and  wealth  should  create  a  recipe  for success, but it is instances like the above that cause investors to pause.

Source: https://bloom.bg/3laxgpw

Bitcoin Bounce

Bitcoin and other Cryptocurrencies finally showed  some  life  after  slumping  lower  since  May.  As  of  this  writing,  Bitcoin’s  price has appreciated 20%+ since July 23rd, and this recent gain has sparked life in many retail crypto traders looking to profit off the price movement once again. The past few months  were  seen  as  a  period  of  consolidation  in  the  price  after  reaching  all-time highs earlier in the year. According to some sources from CoinDesk, this  recent  price  spike  was  in  part  due  to  2,000+  short positions liquidating in the market, cause a  squeeze  in  the  price  over  the  short-term.  Now  that  the  price  has  started  to  come back up, we’ll see if there is enough retail and institutional support to  continue  this  upward  trend.  Bitcoin  is  positive  in  2021 overall.

Source: https://bit.ly/2WoWS7G

Delta  Wave  Incoming?

This month was marked by the Delta variant of COVID-19 causing rapid increases in positive tests around the country after a strong start to the summer gave consumers good feelings that maybe we’ve  gotten  over  the  hump.  Now,  politicians  and businesses alike are trying to figure out how to prevent further lockdowns from occurring. It seems the states with the lowest vaccination rates have the highest positive tests coming back, but these states also tend to be the ones that didn’t lock down as hard  to  begin  with,  so  it  may  be  hard  for  them  to  change course now.  In  states that  have  higher vaccination rates, the positive test results seem to be fewer, so the impact of the Delta  variant may  not  be  as  harsh  from  a  financial standpoint compared to last year. Time will tell, but the markets have certainly acted like this re-emergence could put a damper on a fun summer.

Source: https://coronavirus.jhu.edu

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