Yeah, if you bet against the SP500 you better have your seatbelt on. Many have their 401K chips on that index, which is a strong force to beat down.
The stock market just follows the Fed balance sheet. With some minor hiccups (buying opps) along the way
joe Biden should have intervened and made the fed lower its balance sheet so the market would crash and Trump could get credit for a rally.
I think if the markets head south it might be like the 2000 tech stock meltdown vs. the value stocks represented by DIA or BRK. You have a high P/E Mag7 with 30+ forward P/E and a sub 20 P/E represented by the S&P 493. According to my Schwab account: SPY 21.8 forward P/E RSP 16.8 forward P/E MAGS 29.1 forward P/E FNGS 32.2 forward P/E MAGS == TSLA META AAPL AMZN GOOGL NVDA MSFT FNGS == CRWD AVGO NOW META AAPL AMZN GOOGL NVDA NFLX MSFT So RSP - FNGS P/E gives you about 16.5 P/E. {[(16.8*500) - (32.2*10)] / 490}
I believe there will be a possible slight correction and a lot of rotation. New leaderz are always starting to move as the old ones stop going up. All those booked profits have to go somewhere, you know!