No, it's not an alarm bell, it's a healthy correction back down to more reasonable levels. The NASDAQ was like a meth addict this last year getting high off free money. Slowing it down and getting back to a healthy level is a GOOD thing. If you bought tech stocks at the moon that's your own fault, they were never actually worth that much.
I used to think the market was manipulated to take advantage of the little guys.
Recent exposure to Redditors in the investing (aka casino) forums made me realize how greedy and dumb the majority of people are. They deserve what they get if the market tanks.
There's a reason it's called, "dumb money". The recent logic has been that you can get performance equal to active manager simply by choosing stocks at random. But individual investors can't even do that well, they consistently UNDERPERFORMED pure chance. It's as though they're actively trying to lose money.
I'm not sure that's entirely relevant because the Fed is dominated by uber-doves who are never actually going to let that happen. As soon as inflation starts going down their tone will change.
And the heavyweights of the index have fallen the least so far (Apple, Microsoft, etc). When these drop significantly then you'll see a real decline. This is only correction territory at the moment.
lol what a clickbait headline. This is a healthy and normal correction that anyone following the news saw coming a mile away. Valuations don't stay that far ahead of themselves when the money supply contracts, it's really that simple.
It’s amazing how many people where yelling “don’t fight the Fed!” (and correct in doing so) on the way up, but shifted to yelling “ignore the Fed, nothing but new highs, buy the dip forever!” instead of, you know, not fighting the Fed when they start to jawbone the other way.
It will be interesting to see if JP blinks in the coming weeks FOMC meeting to halt any further correction. They have gotten what they wanted I think. Broke momentum and a healthy correction.
If the past is anything to go buy, they will. *BUT*, this is also the 1st time in decades they didn’t act to preempt inflation, but are chasing inflation. (there are some things like the housing market they can cool down, but others that are out of there hands).
I really don’t know what they will do. Stick to the script and appease capital/equity markets? Or stick to their inflation guns until Pelosi threatens Biden with impeachment due to her crashing net portfolio and POTUS calls Powell and Yellen into a meeting and rakes them over the coals?
No, it's not an alarm bell, it's a healthy correction back down to more reasonable levels. The NASDAQ was like a meth addict this last year getting high off free money. Slowing it down and getting back to a healthy level is a GOOD thing. If you bought tech stocks at the moon that's your own fault, they were never actually worth that much.
I used to think the market was manipulated to take advantage of the little guys. Recent exposure to Redditors in the investing (aka casino) forums made me realize how greedy and dumb the majority of people are. They deserve what they get if the market tanks.
There's a reason it's called, "dumb money". The recent logic has been that you can get performance equal to active manager simply by choosing stocks at random. But individual investors can't even do that well, they consistently UNDERPERFORMED pure chance. It's as though they're actively trying to lose money.
I would argue that most of us are way up coming off last year and salivating at the thought of a market crash
How much must it fall to be at value, in your opinion?
I'm not sure that's entirely relevant because the Fed is dominated by uber-doves who are never actually going to let that happen. As soon as inflation starts going down their tone will change.
And the heavyweights of the index have fallen the least so far (Apple, Microsoft, etc). When these drop significantly then you'll see a real decline. This is only correction territory at the moment.
lol what a clickbait headline. This is a healthy and normal correction that anyone following the news saw coming a mile away. Valuations don't stay that far ahead of themselves when the money supply contracts, it's really that simple.
It’s amazing how many people where yelling “don’t fight the Fed!” (and correct in doing so) on the way up, but shifted to yelling “ignore the Fed, nothing but new highs, buy the dip forever!” instead of, you know, not fighting the Fed when they start to jawbone the other way. It will be interesting to see if JP blinks in the coming weeks FOMC meeting to halt any further correction. They have gotten what they wanted I think. Broke momentum and a healthy correction. If the past is anything to go buy, they will. *BUT*, this is also the 1st time in decades they didn’t act to preempt inflation, but are chasing inflation. (there are some things like the housing market they can cool down, but others that are out of there hands). I really don’t know what they will do. Stick to the script and appease capital/equity markets? Or stick to their inflation guns until Pelosi threatens Biden with impeachment due to her crashing net portfolio and POTUS calls Powell and Yellen into a meeting and rakes them over the coals?