NASDAQ reaching end of Capitulation? Or only half way there?
Every investor should ask themselves, are we in store for the usually 20-30% correction?
Or are we in store for a market meltdown, similar to the Mortgage Backed Security collapse of 2007-2009?
Or the Dot Com bubble during in 2001-2002?
I have the most recent corrections in history highlighted, their reasons listed.
> It is clear that the current situation and correction is more serious, than those in recent history. It has more drivers to the downside than the last 3 corrections.
> It is also clear that the global economy isn't collapsing with like in 2008. In that recession, $10.2 Trillion alone was wiped from the American economy alone. That's not including the hit to Global Wealth, resulting in the elimination of many more Trillions.
> It is further clear, current tech equities are not as overvalued as in the Dot Com bubble. I cannot deny that there has been an increasing number of Unicorns and IPOs entering the market. The majority of which have already had their values demolished. One only has to look at the recent SPACs, to see the smack these "Vision over Reality" companies have received from the market.
>>> I believe we are more likely in a 20-30% correction, rather than a meltdown of 50-70%. Long term stocks go up.
Or are we in store for a market meltdown, similar to the Mortgage Backed Security collapse of 2007-2009?
Or the Dot Com bubble during in 2001-2002?
I have the most recent corrections in history highlighted, their reasons listed.
> It is clear that the current situation and correction is more serious, than those in recent history. It has more drivers to the downside than the last 3 corrections.
> It is also clear that the global economy isn't collapsing with like in 2008. In that recession, $10.2 Trillion alone was wiped from the American economy alone. That's not including the hit to Global Wealth, resulting in the elimination of many more Trillions.
> It is further clear, current tech equities are not as overvalued as in the Dot Com bubble. I cannot deny that there has been an increasing number of Unicorns and IPOs entering the market. The majority of which have already had their values demolished. One only has to look at the recent SPACs, to see the smack these "Vision over Reality" companies have received from the market.
>>> I believe we are more likely in a 20-30% correction, rather than a meltdown of 50-70%. Long term stocks go up.
Comment:
Looks like the May Rally will not be happening. Maybe fall down to the -30% support levels is next. Don't panic sell minus 25-50% positions just to buy them up a few weeks later at 10% higher than current levels. Buy a Case of beers and enjoy time with your friends. This market is just depressing, distract yourself, go workout, enjoy a nice dinner. I know ill be focusing on F1 Miami to distract myself from this wild capitulation.