Posted on 03/05/2021 7:47:48 AM PST by AAABEST
Investors reaped enormous wealth riding S&P 500 and Nasdaq stocks' breathless run higher. But that's making for some giant-size losses on the way down.
Stocks in the Nasdaq 100, including technology giant Apple (AAPL), consumer discretionary Tesla (TSLA) and Amazon.com (AMZN), dropped $1.6 trillion in value since the index's closing high this year on Feb. 12, says an Investor's Business Daily analysis of data from S&P Global Market Intelligence and MarketSmith.
That massive loss in Nasdaq 100 stocks amounts to roughly a tenth of the market's $18 trillion gain since the pandemic lows nearly a year ago, says Wilshire Associates.
(Excerpt) Read more at investors.com ...
I do believe we're watching a slow motion crash. The Jao Xiden NASDAQ is already down on the year and has been getting smashed on a daily basis. Plenty of bottom left.
Gold and silver are getting hammered pretty good as well before what I expect to be an absolute run on the stuff.
Don’t sell.
valuations were sky high, stocks with little or no profit selling for hundreds of dollars a share.
Where is all that money going? That is, the money used to purchase it went somewhere. It’s not coming out to keep the price high. Where is it?
...stocks with little or no profit selling for hundreds of dollars a share.
So far its an 11% drop, after going up about 110% since the lows in March 2020.
This correction so far hardly counts as anything.
As reckless as the Federal Reserve and Fed.gov are with money printing and spending, they know that investors must have some fear of consequences, so they will be happy to let this decline run to at least a 20-25% correction, as long as their friends on Wall Street aren’t put in any great jeopardy.
and as they pull out the money is going to OandG. XOM for instance after getting pounded by the powers to be all last year including removing the company from the indexes, is now around 60, still paying a 6% dividend, after a run up from near 34 late last year.
I howled when I heard the Fed Chief say that rates were trending up a tad but they were holding to their free money plan. IOW, we will continue to print worthless script currency to keep fueling the deficit spending. More dollars, less goods equals rampant inflation, not the tame variety. Look at the housing market. One can put their arms around a house figuratively. That is why the prices are zooming beyond belief. Farm land, same thing. People have an instinct to what is happening and the instinct now is to buy hard assets or invest in firms that actually make money as the cost of their products go higher.
You are mostly correct as far a a fellow I have been talking to-opinion. A retired investment man.
Would say that the problem with your senario is that although correct, what happens is like a snowball rolling downhill. It cant be stopped once it is pushed over the crest.
Trumps economic policies are mostly in effect till about the end of August. Watch out after that.
He thinks that the correction will continue throughout this year and all of a sudden, they will declare it a crash since it will drop in minor steps. And then they will have to come to grips with the numbers.
“All is well, all is well..NO WAIT!” “WE have a problem!”
“we will continue to print worthless script currency to keep fueling the deficit spending.”
THEY..will continue.
The problem is that the gubermint has so much debt that a minute increase in interest will result in the increase of the expense of that portion of the debt. The result. if they increase interest rates, will be that interest payments will be the biggest part of the budget.
In my pocket and all others that have sold. I watch the market closely- at least three times a day. About a month ago, with all of the new "rules and executive orders" I saw very little upside and a lot of downside, so I sold everything. Just sitting in cash. I think that we are seeing a slow slide down. I could be wrong and have been in the past, but I just don't see much in the world to make me optimistic.
Yep. That's where the real danger is. From this point of view stocks are insurance, as long as the economy still functions.
At the time of the Great Depression, the dollar was tied to gold. And as a cryptocurrency holder/trader/miner, these drops are nothing. :)
That said, one needs to be sure they've diversified their assets and have essentials for survival in hand, in case of a total economic collapse. Due to our specialized society, today, it may be far worse than the last collapse.
Thanks for the info. Time to buy some more.
I hope you are right. I got out in October and moved everything into US bonds, yes I know I will make nothing in interest and I am open to inflation. I looked at the upcoming election and decided it was to risky and ready for a dem steal. With Biden it the crash was certain.
The only thing I am worried about now is guessing where the bottom is. This drop is only beginning.
After the destruction I will happily buy low and go long.
Totally agree. We have been sitting on ours for 10 years.
Tesla went from about $863 to $597 today in less then 1 month. Many stocks lost a lot this past month.
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