Posted on 05/19/2022 5:32:57 AM PDT by lasereye
Horror has returned to Wall Street trading desks and the portfolios of the average investor.
"Wednesday's sell-off really seems like a chain reaction, with the weakness in retailers feeding into fears that the consumer may be slowing, that inflation remains a problem, that inventories are too high, and this could pressure profit margins," Truist co-chief investment officer Keith Lerner told Yahoo Finance. "When you have such household names moving down so much, this spooked the broader market."
Lerner has been warning of a downturn in markets for months, downgrading his view on stocks back in April. The call looks prescient.
Here's what pros are telling us about the renewed market pressure:
The big question among market participants is whether the bearish activity in the markets the past two days represents capitulation. Such a happening in the markets is when all of the selling activity is exhausted as speculators are forced out of the fray. In turn, that brings out fresh buyers that are looking for attractive values.
The general vibe on the Street is that more selling is on the way in the near-term.
"No, not yet I’m afraid," Interactive Brokers strategist Steve Sosnick told Yahoo Finance on whether we have capitulation. "We got a 10:1 down/up volume day, but neither 10:1 advance/declines nor a VIX in the high 30’s. On top of it, our customers have been resolute net buyers of their favorite stocks. Until/unless I see that change, we haven’t seen capitulation.
(Excerpt) Read more at finance.yahoo.com ...
Gabe Plotkin, widely regarded as one of the industry's best traders after posting years of double digit returns, told investors that the last 17 months have been "an incredibly trying time."
17 months? What does that correspond to?
What new event have we also experienced in the last 17 months boys and girls? Can anybody think of it?
Another 10% decline should find a bottom.
Guy on finance show this AM said market will drop another 10% before bottom, then there will be a ‘nice rally’.
Walmart and Target earnings misses = the possible start of a material consumer spending pullback
DJIA futures down about -376 right now
If the Washington printing presses don't slow down and the Federal spending isn't paused Inflation will continue.
Since the political will isn't there to do this, hold on to your hats.
The massive printing of funny money will have long lasting consequences.
Grantham says S&P 45% drop from here He says it’s over the next2 years. I say this year. This is worth than 2000 folks. I’ve been trading for 20 years and cash is king. They will be ups and downs and we have a FED that is purposely crashing the stock market to bring down inflation.
They want more lockdowns because that will bring demand to a halt. These evil b#stards are going to try everything to hold onto power. I really think they plan on having no elections in November. This is their play to go full communism.
Please remember.......
If you don’t sell, you don’t lose.
Here’s what this Pro is saying - this is directly correlated with Biden’s disastrous policies at every level.
What new event have we also experienced in the last 17 months boys and girls? Can anybody think of it?
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Societies can exist in almost any environment as long as one thing exist - That is that it is stable. What I mean is as long as everyone knows and understand the rules and those rules are not changed very often or for caprices reasons.
Since the Democrats have taken over the rules (laws, regulations and customs) have been under attack and no one knows or understand what the new rules are.
An old Chinese curse, “may you live in interesting times”. Well boys and girls we are certainly living in interesting times.
I wonder if he’s a Democrat. Wall Street gives a ton of money to Democrats. What’s bizarre is the Dem Pres. candidate will receive a ton of money again in 2024 no matter who it is. The state of the economy (or national security, the rule of law etc.) are not top priorities with the woke nutjobs that seem to be a majority in the big money world these days. They are very giddy about Ketanji Brown Jackson being on SCOTUS. They’re for that psycho project to put a black woman on the moon.
“What new event have we also experienced in the last 17 months boys and girls? Can anybody think of it?”
They don’t care.
If they had it to do over, they would still enthusiastically support the demented, corrupt pervert.
A big part of earnings misses is incompetent management. The revenue was there but the expenses were out of control.
I recall the 87 crash, which took about a year to recover. This will last longer.
Oh! Oh! I know.
Was it the Presidential Election? Where the idiot who got in, cut US oil production so severely that the price of oil shot through the roof rippling through the entire economy kicking off inflation. Then passed huge spending bills that further fanned the fires of inflation. The idiot president that put pressure on the Fed Chairman to keep interest rates low as a prerequisite of his reappointment process. Further exacerbating inflation.
Just a guess.
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