Hedge funds blowing up is definitely a sign.
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- Thread starter brightside
- Start date
Hedge funds blowing up is definitely a sign.
You will likely see a few hedge funds blow up if this continues next week.
Most of the stock bubbles are only from the several dozens of large techs. If you take those 100 companies out, most of the markets are still healthy. A lot of the stock prices are still below pre-pandemic levels. I see some stock pickers go into those stocks.
All those traders' darlings over the past 2-3 years have more room to fall. That is healthy for the entire markets. I like to see those bubbles bursting. Then good cash goes into the undervalued stocks.
I'll be happy to buy the dips into those companies that have stable and positive cash flows and will benefits from the endemic. Energy is clearly one of them. Some banks too.
All those traders' darlings over the past 2-3 years have more room to fall. That is healthy for the entire markets. I like to see those bubbles bursting. Then good cash goes into the undervalued stocks.
I'll be happy to buy the dips into those companies that have stable and positive cash flows and will benefits from the endemic. Energy is clearly one of them. Some banks too.
The scenario I presented would be an 89% drop, -7% more than the dot com bear. Many legends of trading think this bubble is larger then what we had in the dot com era.
Old traders that have been through brutal bears know just how bad things can get - which is when we tend to lean more on the short side.
Only way you'll get that is if we return to the days of a Fed Funds rate over 10%. Seems very unlikely, but that's probably what they thought the first time around.
Only way you'll get that is if we return to the days of a Fed Funds rate over 10%. Seems very unlikely, but that's probably what they thought the first time around.
Jobs report was too good. Will have to get more aggressive with rate hikes to curb inflation. This market is cooked.