Home Views Global Markets

Tina and her friends Fomo and Foho stave off market bottom — for now

Chew Sutat
Chew Sutat6/30/2022 12:08 PM GMT+08  • 8 min read
Tina and her friends Fomo and Foho stave off market bottom — for now
30 Rock lead actress Tina Fey (left), her co-star Alec Baldwin (centre) and executive producer Lorne Michaels. In the financial markets, “Tina”, “Fomo” and “Foho” are for now staving off the market bottom / Photo: Bloomberg
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

The “rotation to reality”, which has been postulated by this column since it started 10 months ago, has played out like a script. Rising US Federal Reserve (Fed) rates, Russian leader Vladimir Putin’s Ukraine misadventures, disrupted energy and food supply chains, plus the great crypto deleveraging amid its current winter, have all helped to dampen the spirits of all but the most bullish.

Fluff that had no intrinsic value, such as meme stocks, “growth at all costs” business models, imaginative coins and non-fungible tokens (NFTs) minted for crypto heaven, have all succumbed to Newton’s law of universal gravitation. Instead of a gentle drop, many find themselves caught in a vortex that seemingly spins more furiously as each day goes by. Many giddy market Cassandras have started drawing parallels to the 2008 global financial crisis (GFC).

Will this be the sub-prime tail that triggers the dominoes falling across the world? The current inflationary threat is coming from non-traditional quarters, such as commodities logjams, war-disrupted freight and de-globalisation. Are central banks, rusty at dealing with this traditional yet unfamiliar scourge, ill-equipped to do so beyond the blunt sledgehammer of steeper and steeper interest rate rises? Is stagflation inevitable whilst countries hoard their chickens and palm oil?

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
×
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.