A prevailing theory suggests that adjustments in the channel trend lines within stock markets signal the advent of a digital currency era—a shift towards monetary systems that no longer rely on benchmarking against the U.S. dollar. From a technical analysis perspective, this evolution is interpreted as a natural progression toward a more digitized financial landscape.
Looking back over the 40-year history of stock markets, one might question the overall state of Western economies. Despite intermittent, minor declines that are often sensationalized by the media, major indices such as the S&P 500 and Nasdaq have quietly continued to reach all-time highs. This persistent upward trend supports economic theories that highlight market resilience and self-correcting mechanisms, even in the face of periodic volatility.
Moreover, there is substantial evidence that the United States has consistently injected liquidity into its financial system to stabilize and sustain growth. This strategy, while potentially masking underlying vulnerabilities, appears to have worked effectively over the past half-century. The practice can be seen as a self-reinforcing mechanism—one that maintains market momentum and may delay or even avert any catastrophic "Great Reset" or systemic collapse.
In contrast, emerging markets like Thailand have experienced prolonged periods of stagnation, with stock prices moving sideways for approximately 15 years. This divergence raises a critical question: why do developed markets benefit from these self-sustaining policies while some emerging markets do not?
Ultimately, if the mechanisms that have driven developed markets continue to function as they historically have, the anticipated dramatic resets or collapses may never materialize. Instead, the upward trajectory—often colloquially described as heading “to the moon”—is likely to persist in markets where these policies are in place.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.