Downtrend???With the US continuing to borrow huge amounts of money and a weak President, being manipulated by the Speaker of the House????????
Markets were mostly propped up by the incentive payouts, which was very good for the banks because they didn't have to worry about debt defaults.
That is changing and the bubble created by all of that cash is going to burst or get smaller.
The institutional investors know this and many are dumping financials and energy stocks, to retain profits.
The market crashes are getting closer together after the 2007 route and big players are preserving capital.
I was just listening to a program on Bloomberg
An analyst put out some stats from his personal tracking of all the Nasdaq traded platforms.
53% of them have lost over half of their valuations since the 2019 crash.
I believe we're looking at a correction that is mostly driven by fear and a long needed consolidation.
I'm a little retail guy. I've only got 10k of BK and I'm liking the present distribution, but I don't see how it's going to be sustainable for much longer, given the recent state of financial developents around the world.
Canadian banks have more regulation on them than the US banks but they do a lot of business in the US and that makes them vulnerable to market fluctuations.
The US gets the sniffles and we get a full blown cold.
I'm hoping this correction settles out at 10%, which would be healthy. If it drops below 20%, then it's time to move to full cash positions.
This is all just IMHO of course.
GLTA the good folks here.