Stock Market Plunges With Apple at its Front: Bitcoin&Crypto Reflecting Wider Influence
Within the start of 2019, the trade war between China-US spread a shiver among stock traders as the market deep-dived heavily in the red on Thursday. The leading company – Apple took a quick but steep path from $157.00 to $142.00 counting almost 10.0% losses.
“If you look at our results, our shortfall is over 100% from iPhone, and it’s primarily in greater China. So, as we look at what’s going on in China, it’s clear that the economy began to slow there for the second half. And what I believe to be the case is that the trade tensions between the United States and China put additional pressure on their economy. And so we saw, as the quarter went on, things like traffic in our retail store, traffic in our channel traffic stores, the reports of the smartphone industry contracting, particularly bad in November. I haven’t seen the December number yet. But I would guess that that would not be good either.” – Tim Cook Apple CEO for CNBC.
As the decline continues major investors are taking heavy blows during the process. The aforementioned plunge from the first trillion dollar company inflicted $3.8 billion to Buffett’s Berkshire Hathaway.
“Trump officials are warning of more China trouble ahead for Corporate America. Kevin Hassett, chairman of the White House’s Council of Economic Advisers, told CNN’s Poppy Harlow on Thursday that ‘a heck of a lot’ of US companies with sales in China will follow Apple’s footsteps by downgrading their outlooks.” – CNN.
As traditional investment strategies are taking strikes, many are turning to new technologies and digital assets. John Lore – founder of Capital Fund Law Group:
“We’re seeing some academic institutions getting involved on a limited basis for strategic reasons. I can’t say the names of [the academic institutions] because that’s attorney-client but we have people mostly on the East Coast that have begun doing investments in this space on a fairly modest basis.”
The University of North Carolina, Harvard and many more are setting aside some of their holdings toward cryptocurrencies to diversify their portfolio. Not being connected, impacted nor belonging to any country, region make cryptocurrencies a great target for many and all. Standing in a not-included status by various influences are a potential look into by different investors or traders that dealt only with traditional assets as they are catching fire from the financial war taking place.