- Despite Thursday’s stock market plunge, traditional and non-traditional hedges as orange as well as bitcoin were not immune from the sell off.
- Technological innovation stocks led a steep sell-off in the industry, with the Nasdaq 100 index down as much as 5.5 % in Thursday afternoon trades.
- Gold traded down pretty much as one %, while bitcoin fell 6 % on Thursday.
- Often, investors appear to these non-traditional assets to provide shield in the course of stock market sell-offs.
Technology stocks led the marketplace decline, with the Nasdaq hundred index down pretty much as 6 %. Mega-cap tech winners as Apple, Microsoft, and Amazon fell 8 %, seven %, and 6 % respectively.
Meanwhile, the S&P 500 fell pretty much as 4 %, while the Dow Jones industrial average fell more than 1,000 steps for a loss of 3 %.
The steep technology driven sell-off in the stock market spread to traditional and non-traditional portfolio hedges like bitcoin and orange.
Both gold and bitcoin have recently been bid set up by investors concerned about the growing balance sheet of the US Fed and its the latest policy overhaul that will probably lead to higher levels of inflation.
Very last month, gold touched all-time highs at $US2,089 an ounce, while bitcoin hit a multi-year high of $US12,473.
But that historical correlation did not play out on Thursday.
One particular classic asset class that did offer protection to investors from Thursday’s market sell off was bonds. The Bloomberg Barclay’s US Aggregate Bond Index traded up as much as 0.20 %.
For all of the dialogue among Wall Street analysts that the favorite 60-40 investment collection which balances stocks & bonds is “dead,” it is alive and very well today.