The Metaverse will be bigger than the internet and book printing combined – a trillion dollar market

Dirk Muller Interviewed: Mr. Dax: ‘Metaverse Will Be Bigger Than Books And The Internet Together’

Dirk Muller is known to many under his nicknames “Dirk of the Dax” or “Mister Dax”. In an interview with FOCUS Online, the stock market specialist talks about rising inflation, future interest rate policy, and why the metaverse will be the next big trend.

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Internet focus: Mr. Mueller, how are things going in the financial markets? Inflation is rampant, interest rates are rising, the Ukraine war is a burden, and China also has many problems. Could it get any worse than that?

Dirk Muller: Aside from the war in Ukraine, these are issues that have been on our minds for a long time but have been largely ignored thus far. The reason for high inflation is partly due to Russia’s aggressive war, because intense cash flows from central banks have been going on for ten years. Now the topic comes to a head. This will be a dangerous and exciting two years.

But negative things go into the cycles provided there is no gas embargo or nuclear strike.

Miller: You think so, but it’s only in your head. It’s like time lapse mode. In fact, market movements develop over several months. Look at the failure of Lehman. In 2007 it was already clear that the real estate market was going to slide. But the climax came two years later. Or let’s take Corona. In January 2020, it has long been known that the epidemic will also reach Europe and the USA. But it took an astonishing amount of time for the markets to take the problem seriously. I expect very high volatility in the future.

for someone

Dirk Muller was a trader on the Frankfurt Stock Exchange for many years, earning the nickname “Mr. Dax”. He now works, among other things, as an author and lecturer. Muller is also the founder of the financial information service provider Finanzethos GmbH with the “Cashkurs.com” brand core.

Not the time to invest.

Miller: Investors need to be careful because things like power shortages are not yet fully priced. Just looking at the indicators paints a distorted picture.

In which way?

Miller: Stocks like Paypal or facebook / meta But that was not reflected in the indicators because heavyweight companies like Apple It has remained stable so far or has risen to all-time highs. This is what makes this market special: there is more demand for stock picking than ever before. The role of the US Federal Reserve cannot be overestimated.

Because they are now raising interest rates.

Miller: Central bank balance sheets have expanded significantly since 2009. In 2018 there was a brief attempt to reverse this, and markets came under direct pressure. And now the Fed wants to raise rates aggressively and withdraw cheap money — faster than it has in decades. And if cheap money causes prices to go up, you can imagine what happens when the opposite happens. The Fed is responsible for 90 percent of the long-term moves.

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How long will the Fed withdraw this? There are a lot of people in the United States who have shares as a retirement plan.

Miller: The Fed wants to break inflation. “We want to break the market,” she says. There have been a lot of gains in stocks over the past few years, these funds are creating inflation. And if prices fall now, I will reduce the purchasing power of citizens. And we shouldn’t ignore the coin side either.

The dollar is rising as US interest rates rise.

Miller: But this is not the only problem. Currencies in Japan, China and Europe are weak. In fact, China, Japan and soon Europe will also have to cut interest rates or at least not raise them in order to support the collapsing economy. But the imbalance with the United States is getting more and more. This creates inflation in the two countries that they do not need. In turn, they will actually have to respond to this with higher interest rates in order to counteract inflation. The problem is obvious: you can’t do both.

Inflation is another problem: how long will it last?

Miller: It won’t go away anytime soon. And the reasons are homemade. When China clamps down hysterically on a handful of Covid cases and countries allow several thousand cases to happen, it’s hard to fathom. The effects in China are drastic: Container ships stuck in traffic fuel inflation. This is not primarily due to the very high demand, but the supply is not sufficiently present. The Ukraine war is fueling this inflation. Here, too, I do not expect any relaxation, but rather a direct confrontation with NATO over the Baltic states.

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How should the European Central Bank react to high inflation?

Miller: It finds itself in the same dilemma as Japan. If you do nothing, the Euro will continue to fall. Or it could raise interest rates.

What countries like Greece or Italy should not like.

Miller: The high level of debt in these countries is a problem, as is France – where industry is concerned – and Spain. Inflation will continue to rise if we buy commodities and pay with the strong US dollar. As a result, inflation continues to heat up. So we have a choice between hyperinflation or high interest rates. This will lead to problems for companies, which in turn will increase the risk of default for banks.

Isn’t this driving people to cryptocurrencies like bitcoin?

Miller: I do not think so. bitcoin chart It can be placed in a 1:1 ratio above the Nasdaq, which means that the development is almost identical. Bitcoin is not used as a transaction currency, but is a pure risk investment by crypto gamblers. With “risk off” everything goes up, with “risk off” everything goes down. When people get scared, they don’t buy cryptocurrencies, they buy gold. That could be fun for another year or two.

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The question remains what investors can do. Cryptocurrencies are not good, nor are bonds, not much gold can be expected, real estate is expensive – what now?

Miller: At some point the crisis will end. So it makes sense to start looking for stocks now. The good stocks will come out stronger from the crisis because the competition is disappearing from the market. And quite frankly: this is a boon for investors when things get cheap!

First of all, almost everything falls off. Very few investors find this fascinating.

Miller: We have to think long term. What are the topics for the next ten years? Which business model is promising? We have to adapt to this in time. Assembling such companies cheaply in the sale .. the dream of the investor! We’ve been doing this for many years. The 150th issue of Cashkurs * Trends has just been published. To celebrate this anniversary we are also offering all interested parties a free trial study to get to know each other. For many years we have been working with Dr. Future Institute. Get together with Eike Wenzel and learn about the topics of trends that will develop into mega markets in the future. For example, we invested in 3D printing before most people even knew what it was.

What is the new trend?

Miller: We believe in Metaverse. This would be greater than print and the Internet combined and the market size could reach $12 trillion.

So buy Facebook or Meta.

Miller: It belongs in our Metaverse basket. But stocks like Tobii or Micron are also promising. Or Paypal, which was recently punished mercilessly, but it is interesting because they convince with their data.

At the moment, these technical values ​​​​continue to fall …

Miller: That may be the case, but you don’t make it to the bottom anyway. When I said six months ago that you could soon buy exciting tech stocks 50 percent cheaper, I was declared crazy. For years it only soared, no one could have imagined such a breakdown.

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Background, risks and opportunities

Stocks like Apple have been bailed out, which speaks in favor of the stock-picking theory.

Miller: Microsoft too Or Apple is taking advantage of the Metaverse, but I won’t go into it now.

why?

Miller: It’s too expensive for me and it’s about to move down. Let’s take Apple: it’s not a platform, it’s selling physical things. In stagflation, the trend can be reversed and investors can take profits. Then there might be Apple at half the price.

What do I do if I find, for example, an interesting PayPal site.

Miller: In bear markets, you should only buy stocks that you are confident will survive any crisis. I think this is likely with Paypal. And if I buy X when the price is down 50 percent, then my foot is in the door. If the stock falls further, I buy again at -60 percent for the same amount X and again at 70 percent. So I get an attractive average price. And when the trend turns, it also goes up quickly.

But there are solid industries that are not punished in this way.

Miller: Certainly, something like healthcare for example. Johnson & Johnson Listed near all-time highs, the Merck unstable. These stocks are also not affected by inflation. They have the market power to pass higher prices. You see, no one can avoid real physical assets. But now more than ever you have to look at the details.

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