There’s also a lot of speculation that the markets were a bit over confident and hasty, shooting ahead far to fast before there is any real sign of recovery. Now it looks like we are going to go through an “adjustment period” already.
Man that was a short economic recovery! We are back into another recession LoL!
It’s a complicated business. People have to park their money somewhere, and if the economy tanks, they may consider moving back out of stocks and into bonds. Money market pays almost nothing at the moment, so people might be tempted into long bonds at the right levels.
There was a bullish MACD crossover a while back, followed almost immediately by a reversal and a couple of weeks of correction. Today it looked as if that correction might be over—until this news hit the fan.
Now, I don’t know what to expect. Stocks are very risky at the moment.
That was just a dead cat bounce. Now one has to imagine how hard the bottom will be with a cat bouncing that high. Best business right now is buying up assets from companies closing. Very good assets for a few dimes on the dollar. In the future these assets might be difficult to buy new since some of the companies making them will be gone. My 2 cents anyway.