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πŸ“° Structure Weekly πŸ“°

It’s been a crazy week in the Crypto world!
😱While the FTX shockwave has negatively impacted huge swaths of the market, it has also underlined the power and promise of DeFi protocols and the importance of the transparency the blockchain can provide.
πŸ› There will also be a lot of impetus towards tighter regulation of the industry as a whole. Through it all, quality projects just keep building.
πŸ“° Structure Weekly πŸ“°

While traditional assets like stocks were positiveπŸ“ˆ Crypto saw another week of exceptional volatility🎒
Until there is some clarity around FTX, Genesis and other major players in the space, that volatility is likely to continueπŸ“Š
πŸ“° Structure Weekly πŸ“°

The markets were relatively calm - for once.
Likely we shouldn't get used to it. The ongoing issues with inflation, the crypto winter and major unrest in China suggest more volatility to come!
If nothing else, plenty of developments to keep international financial markets interesting 🧐
πŸ“° Structure Weekly πŸ“°

With data suggesting inflation may be moderating and interest rate hikes may slow in the US, the markets had a bit of a rebound this week. Hopes are growing that the FED will slow hikes and perhaps stop in Q1. However, market volatility remains relatively high by historic standards. There is generally a market lull around the holidays - but given everything that has happened in 2022, anything could still happen.

Any thoughts? πŸ€” -> https://discord.gg/structurefi
πŸ“° Structure Weekly πŸ“°

There are some signs that inflation has begun to slow in the US and some other countries.
This mean the mid-term outlook is for a halt to interest hikes and maybe the possibility of cuts. However, inflation is falling because of economic weakness so near term look for continued high market volatility.

What do you guys think? πŸ™„
πŸ“° Structure Weekly πŸ“°

The usual holiday lull will be followed by what in the new year? - That is the multi-trillion-dollar question 🧐
Energy prices, housing, and most leading economic indicators are falling - some quite quickly. Yet, inflation remains elevated and it is not clear what actions the ECB and the FED will take Q1 2023. Everyone is also on the lookout for a bit of a Crypto Spring - but not much in evidence so far.
Happy Holidays from all of us here at Structure πŸŽ‰β˜ƒοΈ
We hope you are well and warm. We appreciate you being part of our community!
πŸ“° Structure Weekly πŸ“°

The market year is ending how it began - high levels of volatility🎒
There is a special type of investor called a "volatility trader" who loves these kinds of markets. However, most people would probably prefer a little less excitement. Perhaps 2023 will bring us smoother sailingβ›΅
πŸ“° Structure Weekly πŸ“°

Hello to 2023! πŸŽ‰

While inflation seems to be easing and the rate of interest hikes for central banks has slowed, global liquidity remains tight with large quantities of capital currently sitting in very secure investments like treasuries. Market volume is likely to remain low until global conditions show some significant signs of improvement.
πŸ“° Structure Weekly πŸ“°

Money Market Assets are one way to count how much money has been shifted from high risk to low risk investments because of global market conditions. Right now, they are over $5 trillion, up from $3 trillion a few years ago. Estimates also place as much as $500 billion in venture capital that is currently on the sidelines. That is A LOT of potential investment capital that is currently on holiday πŸ› 
πŸ“° Structure Weekly πŸ“°

Industrial production and consumer spending reports were negative this week suggesting an imminent recession. πŸ“‰
However, the jobs report and, surprisingly, new home construction in the US remained strong. While most signs indicate a recession is coming, it may be a very different kind of recession in which employment remains relatively strong despite GDP declines.
πŸ“° Structure Weekly πŸ“°

Bitcoin has joined the general market rally and is up 40% from recent lows. Part of the reason seems to be moderating inflation and the hope of looser monetary policy in the near future. However, growth forecasts remain below even moderating inflation predictions and most economists still see a recession as very likely. If Bitcoin and crypto generally can hold recent gains it could be the first signs of cyrpto spring. 🌱🌸
πŸ“° Structure Weekly πŸ“°

The Eurozone managed the amazing feat of not seeing GDP shrink last quarter. Given energy driven inflation, Russia's invasion of the Ukraine and overall global instability, this is impressive. If supporting reports on inflation, employment, and investment see relatively positive news, forecasts for global GDP in 2023 will be revised up. In theory, this should be positive for the markets. πŸ’‘
πŸ“£ Announcement πŸ“£

Structure is pleased to announce that, through our market leading tokenization, we now deliver the most valuable and recognized assets - all the stocks of the S&P 500 plus 100 of the most traded ETFs - to our users and partners. πŸ₯³πŸŽ‰

For the first time, these assets can be traded without high brokerage fees or intermediaries in more than 100 countries. The most recognized and valuable companies in the world can be traded by just about anyone just about anywhere! 🌎
πŸ“° Structure Weekly πŸ“°

Despite some strong reports on employment and spending, loans to businesses have continued to trend sharply lower. πŸ“‰

Business lending is a strong leading indicator of overall economic growth because businesses often acquire debt to expand operations though capital investments and hiring. This is another data point that suggests overall global economic growth may slow in the near term. However, the strength of other predictive indices means forecasts remain quite uncertain. πŸ€·β€β™€οΈ
πŸ“° Structure Weekly πŸ“°

One of the key economic indicators of future growth is construction. While commercial and residential construction has slowed in the EU generally, it has varied greatly by region and sector. The US has seen stable growth in this sector. Overall, construction tells a more optimistic story than overall conditions might suggest.
πŸ“° Structure Weekly πŸ“°

One positive for world economic growth has been the reopening of the πŸ‡¨πŸ‡³ Chinese economy. πŸ‡¨πŸ‡³
China has abandoned it's 0 covid policy which had disrupted economic activity throughout the country. Most observers are now upgrading projections of Chinese growth for 2023. This should help spur growth and ease some lingering supply chain issues. In sum this should provide a significant boost to the global economy in Q3 and Q4. πŸš€
πŸ“° Structure Weekly πŸ“°

The US service sector reported steady growth in February and suggests that hiring will remain strong. πŸ’ͺ🏻
The Eurozone also saw steady growth and the rebound in the Chinese economy seems to be happening more quickly than many analysts had predicted.
Overall, inflation remains elevated but stronger than expected growth is offsetting some of the fear around the likelihood of another round of central bank rate hikes.
πŸ“° Structure Weekly πŸ“°

Bad news for the US banking sector this week seemed to provide a lift for Euro denominated government bonds. The increased cost of borrowing for investment is not only impacting the banking sector, but the US is also starting to see a slowing jobs market - albeit from a strong base.
Will slowing jobs growth and global GDP concerns offset inflation worries enough to slow interest rate hikes by central banks? We'll have to wait and see πŸ‘€
πŸ“° Structure Weekly πŸ“°

Banks were the big story last week and will likely be this week as well. 🏦
The UBS takeover of Credit Suisse avoids a bank failure but also further concentrates global banking - and hence also concentrates risk. The crisis also raises further questions about the likelihood of another increase in interest rates from the Federal Reserve. 🫣