The Ultimate Security

As-salamu alaykum everyone, I hope you are doing well. Got a quick market update for you. As of late, the market has been panicking, it's been gripped by fear due to a number of different factors that are impacting investor sentiment. So we have obviously geopolitical concerns with Iran striking Israel and Israel now preparing for a response. We also have inflation concerns and interest rate concerns, economy concerns, asset specific concerns. So all of these concerns are sort of piling onto one another and causing investors to panic. So here's my quick lay of the land and assessment of where we are right now. And we'll talk about how to gain the ultimate security as an investor at the end. So as always, this is not financial advice. Be sure to do your due diligence before making any investing decisions. So as I mentioned, we are now solidly in the fear area in terms of investor sentiment, which means that now is historically a better time to be a buyer than perhaps any other time we've had this year, wherein we were in greed and extreme greed territory. So fear is typically buying during times of fear has historically been associated with higher returns. So do with that information what you will. And speaking of correlation with higher returns, we have a higher VIX, which is the market's fear index that measures the volatility in the market. And right now, we're at a year to date high. So the volatility in the market is highest and typically a rise in volatility is associated with a drop in the markets because typically markets use the stairs when going up, but they use the elevator when going down. So the VIX has spiked and this is coinciding with a pretty steep drop in the markets. We now have the lowest probability that we've had for a June rate cut. So less than 20% probability for a June rate cut. The market is pricing in a greater than 80% chance of the Fed holding steady for their June rate decision. And that has impacted markets contributed to the decline and fear that we've seen in the markets. On more positive news for investors, Bitcoin halving is in three days. And historically, this has been associated with higher returns on Bitcoin investments, as well as Bitcoin mining companies tend to do well post halving. We have seen some choppiness in the price of Bitcoin. And if you look historically, this is quite normal. So whenever we reach the previous cycles, all time high, we have had days of choppiness, so basically going sideways. And that's what we have this time around. So we've been chopping around the same levels between let's say 57 and 73,000 for the last 42 days. In 2017, we had this choppiness for 21 days. In 2017, we had this in 57 days, we had this choppiness for 57 days. So what's noteworthy here, if you're looking at the graph is that typically this choppiness is or precedes a rather dramatic breakout. And I don't think that this time around will be an exception. I do anticipate a breakout. Now, whether that happens, you know, within a week or two or three or perhaps a month, I think eventually we'll have one to the upside in a big way. And then the prices that we see today will be missed by many investors. In other news, Tesla lays off thousands of workers and we saw Tesla's stock price fall yesterday and today. And here's an article that captures this headline, Tesla lays off thousands of workers as part of a company-wide restructuring. Oh, if you look at the bottom here, you'll notice this does not relate to recent news. This was actually from 2018. This headline was from 2018. And lo and behold, Tesla did not go to zero. It did not cease to exist as a company. In fact, if you go back to 2018, at the time this headline came out, we were actually gearing up for quite a big breakout in Tesla shares price. So we basically 20X in the next two to three years before falling to the levels we are right now, which is less than a 10X. But we were in store for a pretty big breakout. All this to say layoffs are part of the process. If you look at Tesla's headcount, they have doubled in the last three years. So, you know, shaving 10% of the workforce is not that indicative of a systemic problem that the company has. And in perhaps one of the oddest conflicts that I've followed, each side seems to be seeking permission from the other side before it strikes and making sure that the other side is really aware and prepared for the strike before it happens. So apparently the US asked Iran to allow a symbolic strike by Israel without retaliation to save face, which was rejected outright. So my question is, if Iran is striking Israel to save face and Israel is striking Iran to save face, and we all know that this is happening to save face, is anyone's face saved? What is this really accomplishing? So a lot of question marks there. Now let's talk about three-factor authentication. And how you can secure your investments or add to their security. And something that I like to do whenever I feel that, you know, emotionally, if you're panicked or feared or you feel fear or you feel anxiety, a good way to sort of ground your emotions is to give to charity. So use the two-factor authentication that most brokerages offer, most wallets offer, but add a layer of security through giving to charity. Giving to charity is a surefire way to protect your wealth, and I highly advise doing it in times of uncertainty and anxiety and fear. Allah Subh'anaHu Wa Ta-A'la says, translate it into English, obviously, and donate from what we have provided for you before death comes to one of you. And you cry, my Lord, if only you delayed me for a short while, I would give in charity and be one of the righteous. So give while you have the chance, give from that which Allah Subh'anaHu Wa Ta-A'la has entrusted you with. Speaking of good ideas, become a PIF member if you'd like to join our community, join a group of halal-conscious investors trying to help one another, be the emotional support, the intellectual support for one another, help each other with the investment questions that we have. We have a really great community, and we'd love to have you as part of it. And with that, let's go to questions very quick. As-salamu alaykum, don't you think crypto should get banned? No, I don't. Wa alaykum as-salam, wa alaykum as-salam. What do you think will happen with any MIG-E price action? So, I mean, these are sort of the highest risk Bitcoin miners. It really depends on what Bitcoin price does. I'm obviously not saying anything revolutionary here. I think that if Bitcoin price surprises to the upside, these two names could appreciate substantially. Bitcoin having positive for some and negative for others, that's true. So the Bitcoin miners, not all of them will do well. Some of them will probably cease to exist post-having, but some of them will do extremely well. Salam, are you talking about the crypto market or stock market when you're talking about volatility? Both, although crypto market tends to be a bit more volatile, higher risk. Salam brother, are you doing live on the having day? Inshallah, although I will be on the road on Saturday. So inshallah, I will try to. All right, thank you all. Leave a like if you enjoyed this quick market update and until next time, take care of yourself. As-salamu alaykum and peace be upon you all.