This has been a dramatic week for markets as we are witnessing a crypto meltdown and stock markets continue to drop in the wake of persistent inflation and a Fed rate increase.

Crypto Meltdown

• Cryptocurrencies began their downward slide over the weekend when bitcoin dropped to half the value of its all-time high. (Marketwatch)
• The slide continued all week as $300 billion was lost, the crypto exchange Coinbase lost value (WSJ-subscription may be required), and even a cryptocurrency designed to be stable crashed. (NYTimes-subscription may be required)
• Will crypto’s crash bring about regulation sooner? (CNBC)

Economics: Inflation

• While year-over-year CPI increase dropped a bit from last month, the numbers disappointed many as they are higher than expectations. (APNews)
• The Producer Price Index (PPI) is up 11% year-over-year and labor markets are still tight. (Reuters)
• St. Louis Fed President Bullard explains Fed officials’ concerns over inflation’s persistence. (Yahoo Finance)
• Inflation is now driving college tuition increases not seen in a very long time. (Inside Higher Education)

Markets: Pandemic darling face the music

• All of the investment darlings of the pandemic are now crashing, not just crypto and NFTs. Here is a good summary of the casualties. (LA Times)
• Will the markets rally on Friday? (CNBC) Learn about a “dead cat bounce.” (Yahoo Finance video)
• Naysayers spouting the downsides of low-cost indexing have been refuted in this article by Barry Ritholtz. Warning, there is one expletive in this article. If you don’t need the detailed arguments, here is the gist:

"The bottom line: Low-cost indexing has been an enormous boon to investors; the critiques have failed to make a compelling case against it, and besides, its critics all seem to have a vested interest on the other side of the trade."

• Another pandemic darling, the SPAC, is falling from grace. Goldman Sachs announced it will cut way back on its SPAC business. (CNBC)
• Silicon Valley tech companies are feeling the pinch and cutting staff. (WAPO-subscription may be required)
• Don’t lose faith about investing. The Institutional Investor reminds you in these difficult times to think about why you invest—for the long term.

The End of an Era

• Apple announced it will discontinue its iPod line. GenZ may say “so what,” but millenials and older generations probably have fond memories of how these devices revolutionized their consumption of music.(CNET)

About the Author

Beth Tallman

Beth Tallman entered the working world armed with an MBA in finance and thoroughly enjoyed her first career working in manufacturing and telecommunications, including a stint overseas. She took advantage of an involuntary separation to try teaching high school math, something she had always dreamed of doing. When fate stepped in once again, Beth jumped on the opportunity to combine her passion for numbers, money, and education to develop curriculum and teach personal finance at Oberlin College. Beth now spends her time writing on personal finance and financial education, conducts student workshops, and develops finance curricula and educational content. She is also the Treasurer of Ohio Jump$tart Coalition for Personal Financial Literacy.

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