RJ Hamster
A Crypto Shockwave Just Hit December
 EARN WHILE YOU LEARN! JOIN OUR FREE LIVE TRADING SESSION!Hello Peter Anthony Hovis,A Crypto Shockwave Just Hit DecemberInvestors thought they were out of the stormy water after last week’s strong recovery.Then they woke up to another alarm on Monday. This time, it was the crypto. Bitcoin plunged as much as 8% and Ether dropped 10%, as nearly $1 billion of leveraged crypto positions were liquidated during the sell-off on Monday.The liquidation came after about $19 billion in levered bets were wiped out in early October, just a few days after Bitcoin hit its all-time high of $126,251.“It’s a risk off start to December,” said Sean McNulty, APAC derivatives trading lead at FalconX.“The biggest concern is the meagre inflows into Bitcoin exchange traded funds and absence of dip buyers. We expect the structural headwinds to continue this month. We are watching $80,000 on Bitcoin as the next key support level.”  (Source: Bloomberg)While there were multiple reasons behind the liquidation, one catalyst was that Bank of Japan Governor Kazuo Ueda told business leaders that the central bank “will consider the pros and cons of raising the policy interest rate and make decisions as appropriate.”In other words, he is considering about raising interest rates. Traders reacted by raising the odds of a BOJ rate hike in December to about 80%.Japan plays a large role in global liquidity, so any shift toward policy normalization will have implications for carry trades.“As December kicks off, investors are focused on the path forward for global monetary policy,” said Karim Dandashy, an over-the-counter trader at crypto trading firm Flowdesk. “With the Fed now expected to be cutting again after a brief panic last week that saw December odds drop to 30%, and now the BOJ looking more likely to be raising rates to counter the moves we’ve seen in JGBs.”As for the Federal Reserve, traders still expect a rate cut in December, President Donald Trump said on Sunday that he has decided on his pick for the next Fed chair. More importantly, he emphasized his expectations for his nominee to deliver interest-rate cuts.  (Photo: Anna Rose Layden | Reuters)We will receive a dated reading on the Fed’s preferred inflation gauge this week. Economists expect the reading to show inflation being stable but still elevated. It will be the last key inflation data that the Fed will see before its meeting on Dec. 9-10.“There’s some risk aversion creeping into the markets to start the week,” said Kyle Rodda at Capital.com. “At the moment, it looks benign and without a fundamental impetus.”Yesterday’s data showed US factory activity shrank in November by the most in four months. It reinforced the common sentiment that the economy is sluggish, but not at a threat of tipping into a recession.For now, Wall Street views it as bullish because it gives the Fed an opportunity to cut rates further.Ulrike Hoffmann-Burchardi at UBS Global Wealth Management pointed out that the economy is projected to accelerate in 2026, so the fundamentals look positive for stocks.  Ulrike Hoffmann-Burchardi at UBS Global Wealth Management (Photo: DLD)“We have highlighted that stocks historically performed best when the economy is not in recession and the Fed is cutting interest rates,” said Ulrike Hoffmann-Burchardi at UBS Global Wealth Management. “The latest available data suggest that the Fed is more likely to proceed with a 25-basis-point cut.” “Robust earnings growth expectations should drive further equity gains,” said Hoffmann-Burchardi. “We also believe that earnings growth is a more important indicator of forward returns, and our earnings growth estimates for major markets in the coming year are in a solid range of 7% and 14%, supporting near-term upside.”Still, yesterday’s sell-off is something that traders are monitoring to see if the sentiment deteriorates further or not.The Fed Will Cut Rates Soon, and This Stock Could Benefit From ItToday’s Stock Pick: Jones Lang LaSalle Incorporated (JLL)Jones Lang LaSalle is a real estate stock that might benefit from a turnaround in the sector if interest rates lowered over the next few months.Jones Lang LaSalle, better known as JLL, is one of the world’s largest commercial real estate services and investment management firms. Headquartered in Chicago, the company operates in more than 80 countries with a workforce exceeding 100,000 employees.Its business is divided into two major categories:Real Estate Services: Property management, leasing, project development, and advisory for office, industrial, retail, and multifamily assets. Investment Management (LaSalle Investment Management): Oversee roughly $80+ billion in assets under management, giving investors diversified exposure to global real estate markets.Its client base ranges from Fortune 500 companies to sovereign wealth funds.Now, real estate investment volumes have slowed dramatically since 2022. It is below the average level since 2013, so it shows how much real estate has slowed lately.  (Source: Jones Lang LaSalle)Things have begun to ramp up lately.In the third quarter, JLL saw positive results in real estate management services and capital markets services, with both segments growing by double-digits.  (Source: Jones Lang LaSalle)As a result, its revenue jumped 11% year-over-year for its year-to-date 2025 results. Adjusted EBITDA grew even faster at +18%.  (Source: Jones Lang LaSalle)Best of all, its net debt to adjusted TTM EBITDA is only 0.8x in the third quarter — a rare figure for a real estate company.  (Source: Jones Lang LaSalle)Bottom line: The company projects a ~14% growth in adjusted EBITDA for 2025. It is a solid growth rate for a company that could benefit from lower interest rates, which could unlock the real estate sector. EARN WHILE YOU LEARN! JOIN OUR FREE LIVE TRADING SESSION!  © All Rights Reserved, Trade AllianceUnsubscribe | Manage Preferences |
