Leverage is two-sided: If mkt begins selling-off, stock options, including 1-day, etc., will be switched to puts, & add to down pressure.No because the market is way more advanced and complex now vs then. We have 0DTE options that expire every day and have a fed that is willing to do anything to prevent a real drop. Nothing is a good comparison to this environment
These days, a 10% decline, would feel like a crash -- and gets as much press.Ofcourse, that was the sort of point i was making.
No crash at all scenario, like posts 2 and 3 were hinting, is very unlikely, and total wipeout 85%+ crash like 1929, is also very unlikely.
Lots of more likely but still nasty scenarios in between those two.
Agree with most of your points, although I doubt the Fed has any idea they created MEME, bubbles, etc. IMO Fed would only do more QE & lower rates if the economy itself is impacted, not just the stock market.More advanced, you mean the fed is there to print money ...and more QE and yes let's not forget circuit breakers so we can't have another October 1987 style collapse, have to make sure there are no dramatic drops....they make sure there is no such thing as a depression...I mean we can't even get a recession these days. Any minor sell off and the fed comes sweeping in to save the markets. ...
Remember the fed is the only thing that keeps markets propped up and functionable. ...without the fed and the existence of free markets the markets as a whole would be down 90%. There would be no tesla, no google, no amazon, no apple, no Chipotle, no carvana no Netflix....the fed helped create these titans.......
if the markets had just one day of free markets you would see the end of equities
The closest thing I felt to panic was 2020 crash. I really thought that was 1929 level shit lol
At this rate that should be around Q1 2025That's probably at $9-$12 trillion in market cap of NVDA.
More advanced, you mean the fed is there to print money ...and more QE and yes let's not forget circuit breakers so we can't have another October 1987 style collapse, have to make sure there are no dramatic drops....they make sure there is no such thing as a depression...I mean we can't even get a recession these days. Any minor sell off and the fed comes sweeping in to save the markets. ...
Remember the fed is the only thing that keeps markets propped up and functionable. ...without the fed and the existence of free markets the markets as a whole would be down 90%. There would be no tesla, no google, no amazon, no apple, no Chipotle, no carvana no Netflix....the fed helped create these titans.......
if the markets had just one day of free markets you would see the end of equities