Correction in the Markets.

[Dan Stubbs]

I have been waiting for the normal correction that the market does ever 10 to 12 years how far it does no one really know. I have seens the first sign of the fall, and I look for it to hit a 22 percent slide in Tech stocks, and services. Banking will stay strong unless Congress starts to mess with finance. I don't think they will since they seem to be focused on the Court system and increasing their power control.

 

[william the wie]

EU and US regulation are in the process of breaking up tech companies. The FAANG stocks are in trouble but the investigation of the witch hunt and the investigation of the blue wall epidemics are likely to be more important economic problems.

 

[Picaro]

The U.S. economy is flooded with cash coming in from overseas seeking a safe haven; money will continue to be too cheap to encourage savings for most people, which is a serious long term problem for keeping low interest rates at below inflation rate levels. P/E ratios and earnings are ridiculously high at the same time; that's because the financial sector is hugely bloated sucking up nearly 80% of earnings and bleeding the lower and middle classes dry. When the real crash comes, it will a lot worse than a 22% drop. The only way to avoid chaos now is bigger welfare programs and guaranteed minimum income schemes, and there is a significant amount of support for that sort of thing among billionaires themselves. They can't squat on all that cash forever.

 

[william the wie]

Crashes happen when everyone is complascent:

portfolio insurance in 87 being the worst case since the South Seas bubble is the model of all recent crashes but the trade war is putting real pressure on China and capital flight from China is big and getting bigger and Chinese solutions have not been working as well lately.

 

[The Banker]

Crashes happen when everyone is complascent:

portfolio insurance in 87 being the worst case since the South Seas bubble is the model of all recent crashes but the trade war is putting real pressure on China and capital flight from China is big and getting bigger and Chinese solutions have not been working as well lately.

I would actually say crashes happen because there is too much bad debt and people ignore/ become complacent about that. You need a lot of bad debt for that to happen... Oh wait we have a LARGE amount of bad debt and a budget deficit pushing $1.2+T

 

[Oddball]

Crashes happen when everyone is complascent:

portfolio insurance in 87 being the worst case since the South Seas bubble is the model of all recent crashes but the trade war is putting real pressure on China and capital flight from China is big and getting bigger and Chinese solutions have not been working as well lately.

I would actually say crashes happen because there is too much bad debt and people ignore/ become complacent about that. You need a lot of bad debt for that to happen... Oh wait we have a LARGE amount of bad debt and a budget deficit pushing $1.2+T

That's been "good debt" since the creation of the Fed...The gubmint will make good on that if they have to tax you out of your home to do it.

 

[william the wie]

The big problem is that the majority of "investors" don't even know the basics such as more than 25 positions will not reduce risk. And that is not the only biggie by a long shot.