In the middle of last month, coverage of the GPU-centric NVIDIA and the CPU-centric AMD had mentioned how a fadeout in overall growth outlook make these overvalued stocks particularly vulnerable. In the first half of the year, both had lost nearly half their value. In the past week alone, NVIDIA plummeted by 13.9% while AMD was down by 14.5%

Over in the oil market, the overall trend seen through most of the past month (which was also covered) continued in the past week: US Oil slid by 1.5% – a rate commensurate with the decline in the S&P 500. This also confirms the broad outlook on energy consumption: with inflation rising, many households in the Western Hemisphere will be reducing their energy consumption somehow. Given the fall in energy prices and the market – along with the increasing expectation of rate hikes – there is very strong argument that the recessionary phase of the inflation/recession cycle has already, in fact, begun.

In Conclusion

For European investors, many brokers offer a host of leveraged inverse products underpinning most high-conviction U.S. stocks, broad indices and commodities that are currently manifesting a very strong use case with the potential realize short-term gains over the course of a week or even longer. With adversity comes opportunity and this is certainly true for the pragmatic and disciplined investor.