This is not the best example , because its down about 90% +/,, and JPM tried to wild goose it up with an analyst call LOL. Did make some upticks, but GE is down from yesterdays close again.Typical bear trend, maybe smoother than some bear trends. NOT a predicition, may go down in value.
%% Well so far, so good + has paid a small dividend, in the past. LOL SDOW........... See what happens @ close price, FED day/wed??. NOT a prediction, may go down in value.
Those paying big dividends that will maintain their dividend come hell or high water. Divies put a floor under price. I notice P&G was up big against a down market the other day. Some fund is looking for a safe haven in TIDE. But let's not get carried away here we are still in correction territory not crash territory. The Fed has been raising rates. That tends to increase demand for dollars. That tends to strengthen dollars relative to other currencies. That tends to depress market! when the S&P made that ridiculous parabolic dble top out of its up trending channel it was time for a correction, not a recession. The recession will come later. This is correction time, not recession time. Ignore signs of yield inversion, it can be up to two years after the first signs of inversion before an actual recession hits and we have had lots of inversions with no recession! We have to get to 2550-2500 to correct for the parabolic and ridiculous rise out of the S&P channel which took us ~5% above the channel. That will give us a 15% rather than 10% correction. And it is possible, though unlikely, we will go down a little further to the bottom of the channel. But that will be it for now. If we drop out of the channel and start start making a new, downward trending channel, then that will be different. It is way too early to start thinking woe is me. It's not going to happen in a climate of huge deficit spending. Look for a Santa Claus rally! In the mean time keep some powder dry and listen for sleigh bells on your chimney top.
%% Those staying above 200 dma, which most funds consider a bear market . In bear of 2008,DEC 2008 , 7% were above 200 dma ;-stocks, not cryptos. I have bought in corrections many times- but not much in bears. Some volume gold stock are green [up] today if you like buying stuff in bears. See what happens FED day + end of week.
Give us a little bit more panic and everything will be fine https://static01.nyt.com/images/2016/08/05/us/05onfire1_xp/05onfire1_xp-superJumbo-v2.jpg
Fed would reverse and lower rates in a bear market so treasuries may do well/up in price in a bear market. Expect bearish steepening where the flattening/inversion of the concluded fed tightening cycle is rapidly reversed and the 2/10 spread(for example ) steepens. Take a look at the 2/5 year treasury yield spread now...see the markets disagree(well known now) that the fed will continue their campaign. Yields on entire curve have been decreasing in this volatility and correction. Look at these treasury prices (2,5,10 etc,,,) vs. indices lately. Some would prefer this typeof price acton for the las 6 weeks or so but.....maybe too much is baked in so watch out. The fed does not deliberately try to trick or confuse markets like stock participants may attempt to. They don't want to contribute to volatility and in fact (Bullard) try hard not to. Its doubtful they would whipsaw expectations and policy and I dont think the degree of expected relative dovishness will be there this week. i think they will hawkishly disappoint exuberant expectations and treasuries will sell off.....but stocks may as well...so what do some do? Stand back and trade what is seen after the meeting.
fed do want bit of volatility to keep market structure issues confined to hft and volcker not potential other issues with 20 trillion etf market which goes to zero on a 25% daily move. in my opinion better to stagger with warning than all in one day therefore volatility useful and not a sign of recession. in my opinion but keep it on the legit down low.