Leverage is two-sided: If mkt begins selling-off, stock options, including 1-day, etc., will be switched to puts, & add to down pressure.
Agree with most of your points, although I doubt the Fed has any idea they created MEME, bubbles, etc. IMO Fed would only do more QE & lower rates if the economy itself is impacted, not just the stock market. I suspect now the Fed considers most asset prices inflated, and would welcome some re-adjustment.
Thanks guys for your opinions. Just wanted to share a chart; no need to fight with each other... (lol) The FED is in control. We all agree on that. No matter what Joe Biden / Xi Yingping or someone else does, no matter what cash pile Warren hoards, no matter what we think... But: I keep only trusting what I see on the chart and in the data.
I don't know what a crash is. As millenial, the only thing we know is up market with few occasions of sub 20% correction. The closest thing I felt to panic was 2020 crash. I really thought that was 1929 level shit lol
Looks like we got our daily thread of "this market is just like 1929 RCA/2000 CSCO." Next we need some more threads about how NVDA is about to crash. If this ends in a bubble, which is likely, only when no one is left to buy will it actually crash. That's probably at $9-$12 trillion in market cap of NVDA.
The market recovered and went to new all time highs, but the 2020 crash shows how quickly things can change. 33% crash off all time highs in just one month. The Fed can jump in to save the day (assuming the Fed's hands are not tied), but before it does that, the market can fall a hell of a lot.
they would still exist but their valuations would have been based on fundamentals and not printed free money. when you have car company that creates 1% of cars having double market cap of all other car manufacturers combined or NVIDEA being worth more then whole German stock market, you know things are way out of wack. When reality arrives it will be beyond ugly.