Mike Novogratz says that the Nasdaq selloff isn't over

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Mike Novogratz says that the Nasdaq selloff isn't over
07 May 2022
6 min read

News Synopsis

On Friday, the Chief Executive Officer of Galaxy Digital Mike Novogratz

commented that the massive sell-off, the stock market is struggling with isn't over yet as there's a lot more chaos for the economy ahead. Novogratz predicted this after the Dow Jones Industrial Average plunged more than 1,000 points and the Nasdaq declined by 5%, a day earlier.

Novogratz informed CNBC, "I do think there's more pain to come," mentioning that it is possible the Nasdaq will hit 12,000 in the coming weeks or even a "final destination" of 10,000. He further said, "What you're seeing now is big liquidation.”

On Wednesday, the central bank increased benchmark rates by 50 basis points, adding to its March rate hike of 25 points, and laid out plans to shrink its balance sheet, as policymakers attempt to effectively tackle inflation which is currently at its 40-year-high.

Novogratz said, "When inflation gets as high as it gets, you need to put the economy in a recession to stop inflation. Until we see layoffs, until we see not 11 million people looking for jobs, you're not going to see inflation come down. We're going to go through a painful stagflation process. We're in it."