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Stocks slammed by 'chain reaction' — here's what pros are saying
Yahoo Finance ^ | May 19, 2022 | Brian Sozzi

Posted on 05/19/2022 5:32:57 AM PDT by lasereye

Horror has returned to Wall Street trading desks and the portfolios of the average investor.

"Wednesday's sell-off really seems like a chain reaction, with the weakness in retailers feeding into fears that the consumer may be slowing, that inflation remains a problem, that inventories are too high, and this could pressure profit margins," Truist co-chief investment officer Keith Lerner told Yahoo Finance. "When you have such household names moving down so much, this spooked the broader market."

Lerner has been warning of a downturn in markets for months, downgrading his view on stocks back in April. The call looks prescient.

Here's what pros are telling us about the renewed market pressure:

The big question among market participants is whether the bearish activity in the markets the past two days represents capitulation. Such a happening in the markets is when all of the selling activity is exhausted as speculators are forced out of the fray. In turn, that brings out fresh buyers that are looking for attractive values.

The general vibe on the Street is that more selling is on the way in the near-term.

"No, not yet I’m afraid," Interactive Brokers strategist Steve Sosnick told Yahoo Finance on whether we have capitulation. "We got a 10:1 down/up volume day, but neither 10:1 advance/declines nor a VIX in the high 30’s. On top of it, our customers have been resolute net buyers of their favorite stocks. Until/unless I see that change, we haven’t seen capitulation.

(Excerpt) Read more at finance.yahoo.com ...


TOPICS: Business/Economy; News/Current Events
KEYWORDS: bearmarket; inflation; stockmarket
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To: lasereye

“They’re for that psycho project to put a black woman on the moon.”

As long as they leave them there, I’d support them sending as many as they can.


21 posted on 05/19/2022 6:03:20 AM PDT by brownsfan (It's going to take real, serious, hard times to wake the American public.)
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To: cuban leaf

That’s what the trucking industry has been doing. The truckers are now all tapping out. That $6, $7, $10 fuel is about to be passed on directly to you and me. Things will really get chaotic and incredibly expensive when most of the independent truckers in the country are driven to bankruptcy.


22 posted on 05/19/2022 6:04:47 AM PDT by hardspunned (former GOP globalist stooge)
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To: brownsfan

Of course they don’t care. The main people voting Dem are the ones who have nothing and expect more handouts from the guberment so will keep voting D.


23 posted on 05/19/2022 6:05:32 AM PDT by oldasrocks
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To: hardspunned

Are you accusing the Teamsters Union of complicity?

Biden is the Labor president and is doing all he can to restore the union cancer on the American work place.


24 posted on 05/19/2022 6:09:37 AM PDT by bert ( (KWE. NP. N.C. +12) Promoting Afro Heritage diversity will destroy the democrats)
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To: lasereye; All

Question for everyone relating to this article. Relative has $100,000 to invest. Real estate is too high. Market is going down. Silver is stationary. What, in your opinion is the best investment for $100,000 right now. Just keep it in cash?


25 posted on 05/19/2022 6:10:15 AM PDT by refreshed (But we preach Christ crucified... 1 Corinthians 1:23)
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To: lasereye
Walmart and Target earnings misses = the possible start of a material consumer spending pullback

People are still buying essentials like food and diapers from those places but aren't buying chinajunk gadgets because that extra money is being used for fuel and food.

26 posted on 05/19/2022 6:13:49 AM PDT by Pollard (Don't ask if there's a conspiracy. If you're not in one, you need to start one. CA Fitts)
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To: lasereye

There won’t be a rally until Trump is back in office.


27 posted on 05/19/2022 6:14:46 AM PDT by HighSierra5 (The only way you know a commie is lying is when they open their pieholes.)
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To: refreshed

Depends on your risk aversion. Keeping in cash loses money due to inflation. A well-balanced, easily liquidated mutual fund has been my go-to.


28 posted on 05/19/2022 6:15:52 AM PDT by AT7Saluki (No cejar, no ceder)
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To: oldasrocks

“Of course they don’t care. The main people voting Dem are the ones who have nothing and expect more handouts from the guberment so will keep voting D.”

That is the bulk of their votes, however, don’t discount that the big money people are also solidly, brainlessly Dem voters. That includes Wall St.


29 posted on 05/19/2022 6:16:25 AM PDT by brownsfan (It's going to take real, serious, hard times to wake the American public.)
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To: refreshed

Buy guns and lead.


30 posted on 05/19/2022 6:17:02 AM PDT by HighSierra5 (The only way you know a commie is lying is when they open their pieholes.)
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To: Sequoyah101
Fossil fuel goes negative - Week 2 2021


31 posted on 05/19/2022 6:18:27 AM PDT by Pollard (Don't ask if there's a conspiracy. If you're not in one, you need to start one. CA Fitts)
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To: lasereye

I’m not expecting much change until we get rid of the “idiots in charge”.

Here’s a prediction for the future. Although I consider massive deficit spending, restrictive energy production, and unsustainable minimum wage laws to be major causes of inflation, look for politicians to promote government spending to stimulate the economy, new investments in “free and (un)sustainable” energy sources, and higher wages.

For those of you who have not lived through these economic cycles (resets), here’s the end result: The rich get richer and the poor get poorer and a lot of people will suffer for years or decades because of poor governance.


32 posted on 05/19/2022 6:20:08 AM PDT by Boomer One ( ToUsesn)
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To: Red Badger

33 posted on 05/19/2022 6:20:18 AM PDT by Pollard (Don't ask if there's a conspiracy. If you're not in one, you need to start one. CA Fitts)
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To: refreshed

Is he willing to move things around periodically or does he want to just put it someplace to sit?

If he’s willing to move it around - I’m playing reverse ETFs SPXS and SQQQ to make money on the downside.

I’m also holding TLT which is a bond ETF. I know they are down with the market but have started to rebound as volatility has increased.

I would recommend holding another 3-6 months in cash, despite the inflationary loss and then making a decision. If he wants to make an immediate move I’d go with the reverse ETFs and TLT combination.

It’s what I’m doing outside of piling into DWAC (the trump media SPAC) and a very small play in a couple small companies.

This is all in my trading account. In my long term retirement stuff I just park it in index funds and forget it for another 20 years....his timeframe may not allow that.


34 posted on 05/19/2022 6:20:39 AM PDT by reed13k (For evil to triumph it is only necessary that good men do nothing)
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To: Pollard
Fossil fuel goes negative - Week 2 2021

Right about when Biden got sworn in.

35 posted on 05/19/2022 6:22:11 AM PDT by 1Old Pro
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To: Pollard

That is not a price chart, it is an inventory chart. That level of deficit in fuels is very supportive of higher prices.


36 posted on 05/19/2022 6:22:19 AM PDT by Attention Surplus Disorder (Apoplectic is where we want them)
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To: refreshed

I’ve been 90-10 in cash for quite a while until I listened to “expert” financial people who assured me the market was strong and I was foolish to keep so much in cash. I put a chunk into the market at the exact wrong time and am getting clobbered. I’m hoarding cash now. Yeah, yeah inflation is going to get me, but not before everyone else is tapped out paying off margin loans and credit cards. Don’t care. I have piece of mind with cash right now. I’ll carefully move it later if and when things settle down. 2024?


37 posted on 05/19/2022 6:22:21 AM PDT by Obadiah ("America is facing a winter of severe illness and death." Biden's own summary of his America.)
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To: CIB-173RDABN
Since the Democrats have taken over the rules (laws, regulations and customs) have been under attack and no one knows or understand what the new rules are.

New rules - collapse the systems to collapse the USA. Been the commies' plan for decades.

38 posted on 05/19/2022 6:23:48 AM PDT by Pollard (Don't ask if there's a conspiracy. If you're not in one, you need to start one. CA Fitts)
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To: refreshed

I would be in no hurry, none, zero, to throw that money into the General stock market. I can see taking about a quarter of that money and buying an energy related mutual fund. And leave the rest in cash.


39 posted on 05/19/2022 6:25:40 AM PDT by Attention Surplus Disorder (Apoplectic is where we want them)
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To: AT7Saluki

Sounds reasonable. I certainly have heard this advice over the years. If you have a long time, I think this will be fine. Unfortunately, this relative is retired, so they probably wouldn’t benefit from a market rebound in the 5-10 year range.


40 posted on 05/19/2022 6:31:14 AM PDT by refreshed (But we preach Christ crucified... 1 Corinthians 1:23)
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