In 2008 large institutional buys for pensions and mutual funds weren’t being driven by software algorithms. Some of the market fluctuations we see these days seem to have no basis beyond the latest tweet or CNN headline.
This down turn is nothing like the last one in 2008. But there is a bubble that is bursting just like last time. This time its China. And the European debt is a problem as well. We are in great shape. We have no problems, unless you want to count the foreign lobbyists trying to get our country to help them out. Or if you count our international companies that will try to get our government to help them out in the rest of the world.
The China bubble is the big thing. And we should let it pop. Extra money in China is being used for no good purpose. It is funding the China navy and army. And it is funding the Chinese hackers and techno-tyranny. We should treat China like an equal and put tariffs on all their stuff. China is a first world country hiding inside a third world country. There is no reason to think our money is going to latter as long as the former calls all the shots.
The best we can do for the world is to tariff everything from China. It lowers our debt. It weakens China’s military. It lowers Chinese pollution. And it encourages the CCP to spend its money helping the people so they don’t revolt. Everybody wins.
This downturn (as you call it) is a normal market correction and is probably very close (time and price) to being over.
The correction can be identified as either starting Jan./2018 or Sep./2018 depending on the degree.....but a correction none the less. Smart money is now buying as it always does at major bottoms.
Yes.....markets can make new arbitrary highs during the corrective process, i.e. Sep./2018.
It is generally noted that new bear markets are usually identified (by the media) when just about or already over....and this is why the public always sells at the lows and buys at the highs. They watch too much T.V.
Ask yourself this question: Would you let your local or national broadcaster manage your portfolio?
Most foreign markets are now completing their own corrections begun (in some cases) two years ago. Their corrections have been of a larger degree for the most part.
Let’s see, low unemployment and a robust job market, inflation is under control, solid growth, hmmm. With “recessions” like this, who needs expansion?
Simple answer is no
The stock market does not equal the economy. While the market, a collection of international companies, are hurting, local companies are growing and hiring.
It’s not a crash, and predictions about the future financial state of the country are useless.
It’s not a repeat of 2008.
2008 was a culmination of seven years of absolutely reckless real estate lending.
Lending by shadow banks and pure mortgage lenders who decided to ignore the standards of conforming loans, since they could bundle the paper and sell it to others.
As a result trillions of dollars of dubious, high-risk mortgage paper was generated and sold, worldwide. And if you were paying attention you knew that we were in the mother of all bubbles.
There’s no similarly large bubble right now.
The overly popular FAANG big tech stocks were probably overpriced. And I’m certain that there is another bubble in California real estate, driven by overseas buyers. But there’s nothing as big as 2008 or 2000.