Tech Stocks Keep Tanking?
- Thread starter RedSun
- Start date
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Yes/SPY today late........................................................../ but not tech stuff like qqq,QLD\LOL going down to much
I figure SPY to stay aboVe $444.44 or 200 dma/ but that's not a prediction.I like to buy 52 week highs also,sometimes\ not just buying on corrections.
TWM/sqqq is still going up/, not in that @ close.................................
Marko Kolanovic's case is that equities can stomach somewhat higher rates.
All depends on the path of interest rates. If demand weakens this year, price growth stalls, and the Fed looks set to hold steady after a few symbolic baby hikes, then speculation on crypto, tech, etc. will re-appear while the yield on stock indices will resume its convergence with bonds - and said convergence will start spreading beyond the US markets.
OTOH, if CPI continues clipping along at 4%, 5% or more for the next few quarters, and Fed Funds look like it's heading for multi-decade highs, then look out below.
OTOH, if CPI continues clipping along at 4%, 5% or more for the next few quarters, and Fed Funds look like it's heading for multi-decade highs, then look out below.
Bank analysts clearly see the soft landing from Fed. They do not see that Fed has the guts to bring the fears to the market and cause serious damage to the asset bubble. It is the same way that Chinese authority kept the housing bubble for many years. All political moves.
But serious inflation causes serious damages to US economy for years to come. The problem is that both Biden and Powell are here for short-term. They care less about what happens in 10 years.
So all the small rate increases won't cause serious damages to the stock market. The excess fund is still in the market. Economy will slow down with high inflation. It is stagflation with excess asset bubble. Years to come. US will probably has the same situation like that in Japan and Europe.
But serious inflation causes serious damages to US economy for years to come. The problem is that both Biden and Powell are here for short-term. They care less about what happens in 10 years.
So all the small rate increases won't cause serious damages to the stock market. The excess fund is still in the market. Economy will slow down with high inflation. It is stagflation with excess asset bubble. Years to come. US will probably has the same situation like that in Japan and Europe.
Nope.. Crash of 87 was.
Ask Buffett who's seen it all. 87 literally meant the end of the world as we knew it. Exchanges around the world had already started to shut down (planned permanently), there was not even arbitrage available as the S&P futures got totally unlinked and no one even could make a trade or guess as to what price was what... every hour continued into further caos.
Only by a lot of incredible luck, and pulling some strings were we able to re-wind things back up again before we hit the point of no-return (very close call).
2009 was nothing in comparison... we knew trades would still go on when the financial crisis hit.