Nvidia Stock Plunges 13.6%... An Ominous Warning?

Nvidia down, opportunities in commercial real estate and more!

The Daily Ninja 4/22/24

Updates From The Economic Ninja

(4/21/2024)

  • πŸ“ˆ The correlation between Nvidia stock and the crypto markets is a big deal and worth discussing.

  • πŸ“‰ A lot of people tend to buy stocks at a certain price and sell them lower, becoming professional losers when it comes to stocks.

  • πŸ“‰ Nvidia shares fell 10% on Friday, the worst day for the chip maker since March of 2020 when the company's value was one 12th of its current $1.9 trillion dollar market cap.

  • πŸ“‰ Companies start getting squeezed, laying off people, and the tech starts to flatten out, indicating a potential downturn in the market.

  • πŸ“‰ The impact of a single company's stock plunge can have a ripple effect on the entire market, reminiscent of the 1929 stock crash.

  • πŸ“ˆ Super micro has seen its sales skyrocket on the back of unsustainable factors, similar to Nvidia's situation with the rise of other coins.

  • πŸ“‰ The connection between AI, investors, and company stock is a big deal in the background of commercials during sports games.

  • πŸ“‰ Something's going on with AI and crypto, and it's going to affect the miners and semiconductor stocks.

(4/21/2024)

  • πŸ“‰ The distress rate of collateralized loan obligations has surpassed 10%, causing borrowing costs to explode higher and companies to face more distress.

  • πŸ“‰ The distress rate of commercial real estate collateralized loan obligations has jumped past 10% in the first quarter of 2024.

  • πŸ“‰ The distress rate for CRE CLO has jumped past 10%, indicating potential underlying risks associated with these transitional assets.

  • πŸ’Ό The office sector leads all categories with a distress rate of 16.2%, indicating significant challenges in the commercial real estate market.

  • πŸ“‰ 44.6% of distressed loans have not paid off in breach of their loan terms, indicating a concerning trend in commercial real estate loan modification.

  • πŸ“ˆ Companies needing to take out debt are facing higher rates due to the flood of sales of bonds around the world.

  • 🏒 Residential real estate investors should consider opportunities in the commercial sector due to the inability to refinance properties at new terms.

  • πŸ•°οΈ The rates are predicted to go even higher, but only time will tell the true impact on the market.

(4/21/2024)

  • 🌍 Geopolitical tensions can have a significant impact on the crypto market, as seen with the sell-off after Israel was attacked.

  • πŸ“‰ Altcoins tend to run harder than Bitcoin in whichever direction it's going, shooting up higher after a time lag.

  • πŸ“ˆ The sales made me netted me anywhere between 10% and 12% now that happened in a 7-Day period.

  • πŸ’° The trade made $1,136 in US Dollars, showing the potential of crypto trading regardless of people's feelings on Bitcoin.

  • πŸ“‰ Bitcoin has been trading in a range between 59,000 and 65,000, so there's money to be made but also money to be lost.

Keep your head up, pay attention and you’ll start to seeing opportunities popping up over the next few months.

-Ninja Out

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