Bear chasing man

State of the Market (12/23/22)

By Todd Mei PhD | State of the Market | 23 Dec 2022

A Bloomberg report has 70% of economists polled predicting a recession of the mild variety. Pricing in the recession will be the main driver, with stocks moving up and down accordingly. At the end of the week, the Dow sank due to higher growth in Q3 than previously thought. Yet longer term, there may be positive news for interest rates as consumer spending stagnated in October.

Stock Tickers to follow:

  • Cash
  • Gold (GLD)
  • Oil stocks

With stock market volatility and price correction, cash is a safe haven. The US dollar index has been hovering between 105 and 103 for the month of December.

USD index

Gold (GLD) has had its ups and downs but continues a rising trend. We can expect its price to get a bump as fears of a recession become more widespread.

Screenshot of GLD stock performance

Oil stocks remain an outlier until we know more about the situation in China’s COVID policies. A recession would pull prices down, but an open China would move prices in the opposite direction. Supporting a rise in oil, is a report that OPEC+ continues to produce less oil than it had previously indicated.

Crypto Tickers to follow:

  • GMX

DEXs to follow:

  • GLP (GMX exchange)
  • MLP ( exchange)

We’ve reported in the past that GMX continues to do well in this climate. GMX is a decentralized spot and perpetual exchange that enables users to trade BTC, ETH and other cryptocurrencies. Traders can leverage as much as 30%.

GMX crypto performance

But there’s more! For the GMX platform, there is the GLP token. It is the liquidity provider token which can be minted from other assets (50% crypto + 50% stablecoin) and enable token holders to get 70% of the platform fees without requiring any staking.

The GMX model has been forked many times, and there is a new promising fork called Madmex. Its equivalent to GLP is MLP. It has the same perks, but with a different composition of assets (67% crypto + 33% stablecoin), which makes it more of a coin bet. The platform has less active liquidity and no governance token.

-- Todd Mei, PhD

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Todd Mei PhD
Todd Mei PhD

Todd is a former Associate Professor of Philosophy with over 16 years of research experience in the philosophy of work and economics. He is currently the lead researcher and writer for the Web3 consultancy group, 1.2 Labs.

State of the Market
State of the Market

Weekly reports on the state of the macroeconomy, stocks, and crypto compiled by the 1.2 Labs Research team.

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