Markets doing what markets do...
There's distress among the blogs, with some crying that markets are being complicated and no one change would alleviate the downward pressure on them.
Firstly, yes, there is one thing -- time. There is nothing to this bear market besides portfolio rebalancing and speculative shorting. Is it a slow motion train wreck? Yes. Does it bode badly for the nation? Not really. I mean wallets are tightening everywhere, and corporate hiring will slow back down to earth and paychecks will be spread thin. But by July, high gas prices in the summer will feel like any other year and hope will return by September. I have no clue how badly earnings will get hit but it'll be something to worry about for a quarter or two only.
It really sounds like we're ahead of the game and some are speculating that rate hikes will end by year's end, with others adding that rate cuts will begin. So by 2024 we should be seeing some free money again.
Anyhow, I'd point to $368 for a bottom, current conditions say. I really don't see anything under $330, which was the prior high before Covid, because I do think our economy is better off than it was at the end of 2019. But some uncoordinated panic selling may cause an overreaction that could see a bite under.
TL:DR - Don't worry, be happy. Capitalism will figure it out.
Firstly, yes, there is one thing -- time. There is nothing to this bear market besides portfolio rebalancing and speculative shorting. Is it a slow motion train wreck? Yes. Does it bode badly for the nation? Not really. I mean wallets are tightening everywhere, and corporate hiring will slow back down to earth and paychecks will be spread thin. But by July, high gas prices in the summer will feel like any other year and hope will return by September. I have no clue how badly earnings will get hit but it'll be something to worry about for a quarter or two only.
It really sounds like we're ahead of the game and some are speculating that rate hikes will end by year's end, with others adding that rate cuts will begin. So by 2024 we should be seeing some free money again.
Anyhow, I'd point to $368 for a bottom, current conditions say. I really don't see anything under $330, which was the prior high before Covid, because I do think our economy is better off than it was at the end of 2019. But some uncoordinated panic selling may cause an overreaction that could see a bite under.
TL:DR - Don't worry, be happy. Capitalism will figure it out.
I usually try not to tell you what to do -- too crowded there. I'll point out what price points/trends/patterns the pros are looking at and let you interpret what that means for your portfolio.
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