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 ...
To that point of “stability” leemee see now, we had a tax law change just about five years ago that only is to last five years!
How are we doing for stability now?
I can’t count the number of times the tax rates and laws have changed in the last 60 years I’ve been fleeced.
What is Recession? Alex
Um, you know, the thing!
Here’s your car. It will get you about as far as the big ones and it won’t burn your house down.
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