IMHO this is a dead cat bounce that's great for traders but dangerous for investors.
Posted on 05/17/2022 6:56:51 AM PDT by Tell It Right
U.S. stocks were sharply higher on Tuesday as the market tried to bounce after a punishing bear market for the tech-heavy Nasdaq and a 19% pullback for the S&P 500.
The Dow Jones Industrial Average jumped more than 300 points, or 1.2%. S&P 500 gained 1.4%, while the Nasdaq Composite added 2%.
Tuesday’s bounce marks the market’s latest attempt at a recovery following weeks of steep losses. The S&P 500 is coming off a six-week losing streak — its longest since 2011.
(Excerpt) Read more at cnbc.com ...
IMHO this is a dead cat bounce that's great for traders but dangerous for investors.
The day is young. One gnat fart and it’s -400
It's the overall return over decades that should be the focus of investors.
Ok so the market really tanks in October like it did before does it help us?
The MSM will pee on our leg and tell us it’s raining.
Headlines like this are a joke
Only suckers listen to these cheap salesmen.
BOTTOM FEEDERS GOTTA EAT..............
My trading account is doing great (energy stocks) , my 401k . . . not so good.
Another aspect to this is that essentially EVERY big corporation is owned/controlled incestuously - they own each other, and very prominently with Vanguard and BlackRock.
That means, any one corporation can take a bath. No matter, it’s not even a pinprick to the overall conglomerate of control that owns them all.
The Dow is already 250 points lower than the early morning high.
You’re right, we might end negative for the day. Nobody really knows what the market will do in the next six months, and day-to-day swings are only good for day traders who manage to get lucky and time their trades precisely. As Buffett said, it’s just a gambling parlor.
I read yesterday that Buffet is buying. This may be a dead cat bounce or it could the time to as Buffet says be greedy when others are fearful.
SamAdams76 wrote: “Anybody focusing on day-to-day performance of the Dow Jones or S&P 500 are doing it wrong.
It’s the overall return over decades that should be the focus of investors.”
Depends upon the age of the investor. Many baby boomers don’t have decades...
Start of the morning stock headlines are stupid and usually tell nothing about what the day’s trading will be like, which can be set in different directions by news or data that only appears sometime during the day.
The DOW is not now up over 300 points. It is up in the 200 range. Yt was projected (DOW futures) before the market opened that it was going to be up 400. It started “up” above 350 but as trading progressed the degree to which it is “up” has been declining.
Maybe Joe Biden will announce at noon that he is firing his whole administration and hiring real people and not Leftist ideologues and then the DOW might rally by over 1,000. Don’t hold your breath.
“Another aspect to this is that essentially”
The really big essential change is that “globalism” has made the “American” stock markets less than ever before about main stream America and American people because the top “American” companies are now so global that some have more revenue (from which stock value judgements are made) in overseas markets than in the U.S. Their “”health” is less about the health of the U.S. domesctically than it is merely about them, globally.
I'm a Baby Boomer close to retirement. Over the years, I've adjusted my allocations so that I am not overly exposed to the ups and downs of the stock market. That was my point, investments should be planned over decades and adjusted as you age.
> Over the years, I’ve adjusted my allocations so that I am not overly exposed to the ups and downs of the stock market.
how does one do that? tia
I’m not going to dispense specific financial advice to strangers on the Internet. You might want to look into getting a reliable financial planner.
SamAdams76 wrote: “I’m a Baby Boomer close to retirement. Over the years, I’ve adjusted my allocations so that I am not overly exposed to the ups and downs of the stock market. That was my point, investments should be planned over decades and adjusted as you age.”
Appreciate the clarification. I’ve gone from 100% equities most of my life until now I’m leaning heavily into short duration bonds all of which mature in late 2022. I detest bond funds which behave more like equities than bonds. I’ve retired and my investment horizon is less than 20 years.
The Fed is due to QT next month dumping bonds and raising rates. I think that will impact the market significantly.
And here comes the gov’t to rain on our parade!
“Stocks retreat from session highs after Powell remarks
Federal Reserve Chair Jerome Powell says the bank won’t hesitate to raise rates above neutral”
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