Related Topics
Stocks , Investing , European Markets

Fintech: A Hot Trend Turns Ice Cold

A forecast for “a jaw-dropping setback”

by Bob Stokes
Updated: May 11, 2023

We don't hear about fintech as much anymore.

Fintech stands for "financial technology" and it was all the buzz for a while, as this Forbes headline from 2015 reflects:

The Fintech Boom And Bank Innovation

Fintech refers to software, mobile applications and other technologies which enhance traditional forms of finance for businesses and consumers. Think mobile banking and peer-to-peer payment services such as Venmo and CashApp. There are many other fintech companies which have the goal of making financial transactions more accessible to more people.

However, like with many other hot trends, our European Financial Forecast (which is part of our Global Market Perspective) issued warnings that a cool-off was ahead.

For example, in September 2018, after observing skyrocketing valuations, our Global Market Perspective noted:

Fintech [is] on course for a jaw-dropping setback.

In March 2019, this was a follow-up Global Market Perspective fintech warning:

Fintech remains the focal point of the current mania.

About a year later, Germany's fintech giant Wirecard collapsed in a fraud investigation.

More recently, here's an April 16, 2023 Financial Times headline:

How London Lost Its Luster for Fintechs

Our May Global Market Perspective provided an update on its ongoing warnings with this chart and commentary:


Since 2018, [the Global Market Perspective] has discussed the [fintech] sector's sky-high valuations and stratospheric optimism. … About half of those discussions spanned the sector's transition to a bear market over the course of 2021.

Much has happened since then. [This chart captures] a 56% decline in the Global Fintech Thematic Index.

Our Global Market Perspective is currently keeping subscribers ahead of other major financial trends.

In addition, in our May issue, you'll find a special section titled:


Learn how you can access our Global Market Perspective now by following the link below.

It Only Takes a Few Investment Ideas

The idea of focusing on just a handful of well-researched investment ideas has been mentioned by at least a few legendary investors.

Now, we're not saying that you should go in that direction. For example, you may be a day trader or use a swing trade strategy. Perhaps you prefer to spread risk across dozens of financial assets -- or not be in risk assets at all. "To each, his own," as the saying goes.

The point is: If only a few investments can "make a portfolio," imagine a world of current, actionable investment ideas to choose from.

With that in mind, our Global Market Perspective covers 50-plus global financial markets.

Perhaps you can find a few jewels which appeal directly to you.

Check out our Global Market Perspective by following the link below.

What the Luxury Sector Might Be Telling Us

Stock market rallies and a zealous pursuit of luxury go together. However, watch out when people begin to drastically cut back on pricey items. It could be a warning for stocks. Consider this shift in 2007.

Have You Seen This Chart About U.S. Job Openings?

Conventional wisdom today says the U.S. economy has too many jobs and too few workers. Now see the big-picture chart that stands the conventional "wisdom" on its head.


See the Action for Yourself: the Elliott Wave Pattern Unfolded as Forecast

Asian-Pacific Short Term Update subscribers were ready in April for the opportunities in May. See what we expect in major Asia markets in the month of June, and beyond.