RE:RE:2008I was just sitting here remembering 2008, trying to remember the "feel"...YEAH...IT WAS MUCH WORSE!!
Today we have a US economy which would appear to be still quite healthy. In 2008 world economies were on the brink of collapse. The markets were acting similarly, but the panic in the 2008 market was insane. No one was buying as there were no solutions to the problem. Then massive companies started going bankrupt. It was crazy!
Now, we're ending a bull run of a decade and the Fed is raising rates. Assuming the Fed isn't hell bent on destroying the economy simply to blame it on Trump, you have to assume things must be "ok" in the real economy ie. people have jobs, they're paying their bills and infation is under control. And it does appears that way. For how long? Who knows! Raising rates have caused recessions in the past.
Trump is the wild card that keeps the markets guessing, and the markets hate uncertainty. So they sell, and move to cash and gold. I'm in a lot of cash right now.
So, you have to ask yourself....
is the bull market over, or is this just a massive transition from low rates to "normal rates" couple with an unpredictable president who causes drama?
If you think the bull market is over, these high flying weed stocks are DONE! No one will pay the multiples they're trading at. The market will sell them down to where their current production makes it a compelling buy. Then they'll bid the stock up as the company produces and earns its valuation.
If you think the bull market is just having a temper tantrum and will rebound, then adding to these high flying stocks may not be such a bad idea...IF you can handle the volatility. But only add to sector leaders, don't buy laggards as the market will not touch them when uncertain about future prospects. Only the BEST of the BEST with solid future prospects which can be quantified and analysed will maintain whatever "premium" it might have received over its peers.
HEXO said it was listing in the US today...it's dropping last I checked.
In this kind of a market company fundamentals really matter.
Trump is/was just the icing on the cake, the market has wanted to correct for a long time now. He just gave it the push it needed.
But maybe he gets his wall, China and Trump hug it out and all will be well. That's the problem with drama driving the markets. It's all BS.
pipefighter wrote: Nastysasky do you interpret 18,000 Dow the bottom on this market collapse?
I kinda think along the same lines. Things are getting a little out of hand at the White House and Trump just might seal the deal by causing more chaos then most had ever thought likely.
I think he and his family are how you say moles, for a foreign entity, maybe with or without their knowledge? The Manchurian Candidate!
I think he has a vendetta against the USA and the elite!
Because they really never accepted him!
No doubt because he really is not an elite, just some dumb mob idiot running the show for now.
Trying too do whatever too cause chaos in order too deflect attention from the truth.
As he says the truth is not the truth its fake news LOL>