Well, Powell raised the rates twice by 75 bp and they still pushed this market up. So you can't help wonder whether they artificially pushed it up just to sell it off. Who knows...
Today the siren was sounded . No need in bragging about my trades . Pay attention to what I say . Mass liquidation is upon us . Many yrs of gains need to be wiped out . People must feel much poorer and depressed to stop inflation . As we’ve seen the past 2 months the fire of gambling still burns strong . The gamblers must leave the casino with hardly a shirt on their back .
Predicting what the market will do is like predicting the future, especially at present. Globalisation seems to be coming to an end, but even that could be reversed, way too many variables. All can do is trade and look where to invest, the US remains to be a better alternative.
As much as I agree, there is only one problem. The ones at the top, heck, even the top 10% have a much higher cushion now because of the huge wealth inequality. The bottom 90% can't absorb any more setbacks. Its like a forced hunger. The 250lbs woman will survive just fine if forced to lose 10lbs. The 100lbs woman may not make it.
If your account goes from $1.5 mil to $750 k you’ll pull your spending back . Even though your not broke the loss on paper shocks you . Since the 1970’s we’ve never seen longer term forced liquidation.
I do think this will happen too. I am just not sure it will help inflation the way the Fed thinks though. That $750k has to go somewhere, and whoever gets it will spend it on something that will potentially continue to drive inflation.
Correct but you must remember many people will go from $300 k to $0-$100k . Those people used to spend a lot of their money but now will pull back big . Why do you think we never had inflation in the 1990’s or even 2009- 2020? Wether Bezo’s worth $50 bil or $200 bill is meaningless . He never spends the incremental wealth so no increased demand . But put $1000-$20k in Joe six packs hand and he spends it all . Multiply that by 50 mil people . That’s instant demand that causes big inflation . It’s what we had from 2020 till now . The avg 401 k is like $180 k? Take that down to $50-$90 k and it causes fear and a defensive mode . It becomes a vicious look we’re spending drops .
I love how these folks always regurgitate the obvious after the fact. I mean, who doesn't know that when the market tanked like today? C'mon guys, give me something that's actually practical.