Market analysis – 05 Feb 2026 – 7am

It is 7am while I am writing this and this is what I am observing in the markets which has sparked my intellectual curiosity today.

Tech, silver, gold, bitcoin and fears of patterns aligning to pre-2008 era.

There has been a meaningful correction in the tech sector globally as investors re-allocate to “value”. This was observed in pre-2008 sell-off but isn’t this good for markets long-term? Maybe short-sellers are preparing for a fall but for a value investor like me, this is much needed re-allocation, and the fall that may come, well, that will also be an opportunity to buy – if I have saved enough. Will there be a fall certainly? Nobody knows. But based on my understanding, it looks like most tech giants have inflated values and there must be some correction (based on basic technical analysis signals). For example, Nvidia’s chat today is forming the M shape since November 2025 indicating bearish sentiment. Will the stock fall soon? Probably yes, probably no, but it is important to note that bearish sentiment has slowly started creeping into the sector.

I would still stand my ground that a sell-off will be a great opportunity to buy good-quality, AI-focused stocks which are going to boost productivity and change the face of the world in the years to come.

Silver is clearly in the limelight. I think it is because of mere increase in its demand. Silver is used in solar PV manufacturing, AI data centres, semiconductor industry and much more. We have witnessed increased demand in solar (renewable) energy, AI and semiconductors. To add to this, gold has been a safe heaven and historically it is observed that silver more-or-less follows gold’s rally especially in uncertain times. But with silver this time, while most value comes from actual, real demand, there is still some sentiment driven up-movement in the price of silver. I would not directly resonate this with the pre-2008 period when silver price role since the pattern then was nuanced. The key thing to note is that silver rallied a little pre-2008 due to uncertainty (not majorly due to demand) and then witnessed a massive crash when the markets crashed (since it was correlated). So far, silver has not given any collapse behaviour. However, the sentiment driven up-movement will have to be wiped out for a correction. Short-term movement we are witnessing in silver seems sentiment driven, on top of the real demand-driven movement. Will the silver go back to levels say in 2024? A full retracement to 2024 levels appears less likely given structural demand.

Gold is simply gaining because of hedging and demand from central banks. However, unlike 2008 era, this time the rally seems more genuine need so the likelihood of price falling sharply is lower compared to 2008 but a correction may be witnessed due to liquidity concerns.

And finally bitcoin (crypto in general) – the asset class that I tend to stay away from. Crypto is witnessing a sell-off too. The narrative of crypto as ‘digital gold’ is weakening again. According to analysts, the sell-off is driven by liquidity concerns. Not sure where this one goes but the world is now too exposed to crypto to ignore it as an asset class.

Parting thoughts

There are no conclusions as such in this article. This piece is merely a summary of my observation. Only time will tell where things will go. And as always, I am always open to perspectives and being corrected if anything is misunderstood.

Disclaimer: this is not a prediction or investment advice in any form.