The largest IPO in history is set to launch this week, and many believe it will trigger a market crash due to a drain of liquidity from other assets.
But it’s important to understand: this process doesn’t happen instantly. Major players, including funds, have likely been building their exposure for several weeks or even months, which is partly reflected in the recent market correction. Therefore, we can expect a period of sideways movement rather than a full-blown crash. Moreover, it is extremely disadvantageous for Elon Musk’s friend to conduct an IPO at a time when there is no certainty of its success, and it is quite possible that some positive trigger will occur in the market during this very period (the opening of the Strait of Hormuz, a ceasefire, or comments from the Fed regarding rate cuts). We have an interesting week ahead of us.