Explainer : How far US markets will fall and how long it take to recover
#1

I will add some comments to the video. The presenter has prepared alot of data I will point out some he missed out.

1. The US market run up from 2010 until last year making it  one of the longest bull run in history.

2. Because of the length investors have ingrained habits. Like buy the dip because the market always recover quickly. Use any selloffs to buy.

3. Because of Fed moneybprinting we had the last leg that was highly speculative and similar to dot.com bubble. Many young investors made millions on the way up and lost everything when market fell - remember GameStop, mem stock.

4. Many speculative stocks have already to fallen alot some by 90%. "Star Investor" Cathie Woods fund fell 70%.

5.. Many good companies like Google, Microsoft, Amazon also became expensive and just started falling.

6. Because of moneybprinting the FED has no choice but to undo the stimulus that caused market to rise extra 60%. If they reverse course....imagine how much market has to fall to adjust.

7. The inflation situation also means FED has to raise rates same time as economic slowdown. ..same time as war, supply chain problems etc.

8. I am.optomistic over longer economy and market will heal

9. However I don't see any reason to rush into US markets. Of they start rising from here they will quickly  become expensive again and future returns will be low.


I, being poor, have only my dreams; I have spread my dreams under your feet; Tread softly because you tread on my dreams.
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