The market being aware of what the Fed is going to do and the ultimate impact on the economy from what the Fed does are two different issues.I'm just wondering how you (or anyone) is so confident that in the short-term, with the information known now, the market is going substantially lower.
You talk mostly about the Fed. Plausible enough reason for a market hit. Except hasn't the Fed already said (in broad terms) what it's doing? Slowly reducing the balance sheet, raising rates in 0.25-0.5% increments to the 2.5-3.0% range. Why isn't that variable already priced in?
12% drop by the DJ in 3 months. High gas prices and stock market dropping below 31,000 is a pretty good indicator of how things are for everyone.
Ooooorrrrrr.. they have a non unique product in an incredibly oversaturated market and it was a matter of time until the herd was due to be thinned.
And a nearly $40 billion market cap with a 10x sales multiple. And a net loss on the bottom line. Their key to success is to hang on to all of their users as they grow up. The value is most likely as a buyout candidate with a huge tech company wanting their user data.
So, like basically every social media company that isn't FB.
Yeah It’s hilarious that Snapchat is tanking the market today. I think it’s because ad revenue is down big time through the app. Which is bad sign for tech and the economy in generalOoooorrrrrr.. they have a non unique product in an incredibly oversaturated market and it was a matter of time until the herd was due to be thinned.
Yep - I don't even own any individual stocks anymore. In my taxable account I just spread it across a handful of index/low cost ETFs. 401(k) is just on complete autopilot and remains totally invested all the time in FXAIX. I'm lucky to be at the age I am because I can view these things as opportunities to buy more and bring your cost basis down for a long time, and I've been sitting on a lot of cash for a long time outside of the 401k.our thoughts align quite a bit it seems. I’m waiting on a big spike in VIX to buy in some small LT positions as well. I’ll probably just invest all of it into VOO. We just aren’t panicked enough yet.
The financial media has been talking about the Fed tightening for months. There's no remaining (negative) surprise there.because it's common sense. 13 years of faucets releasing unlimited liquidity into the market and now it's over, and we are only at the beginning. It's not priced in because even now people expect the Fed to step in and save the day. Many of these retail traders have only existed in a market that "goes to the moon". It's why every dip is being bought because there is an assumption it will turn around because Daddy Powell will come in and save the day.
My theory on why were seeing such massive dumps after earnings:
It's retail driven. This new era of retail trading hasn't really seen a bear market. We saw some side ways trading in mid to late 2020 heading into election, but it definitely not a bear market. I've only been investing/trading for 2 years, but looking back at the dot com bear market, I don't see quite same single day massive sell offs from big caps like we're seeing now. Of course, I only looked up about 10-15 companies.
The institutions are probably loving it, as they rode it to the top, sold, likely bought some puts, and now they'll buy it back at a 30+% discount.