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.
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!”
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.