Pullback threat
With the U.S. stock market now at record highs, is the threat of a pullback outweighing investor sentiment? Will the U.S. stock market rally continue from current levels? These excesses can’t go on forever – or can they?
Record highs
The DOW is trading just off an all time high of 35000 points. The S&P 500 and Nasdaq have conquered new highs with the S&P 500 recording an all time high of 4290 on Monday 28th June 2020, and the Nasdaq at 14500 on the same day.
Is a 10% – 20% correction more likely than a stock rally of the same size from this point? Are Investors becoming more worried about Federal Reserve policies, especially inflation, interest rates and tapering decisions?
Crypto crash?
Recent falls in crypto currencies, as demonstrated by Bitcoin when it fell recently from a historic high of around $65,000 to $30,000 should be a warning for all?
Professional analysts suggest there are crypto dark clouds brewing as Bitcoin and the crypto market in general are expected to take a tumble, and quite soon. Some speak of the digital currency crashing further to a level of $10,000 in the short term. On the flip side some see it eventually climbing to $500,000 in years to come – who really knows?
IPO’S, SPACS and gambling memes
Unprecedented IPO’s, and SPACS (shell companies with no or little value that are somehow valued at billions)? Meme stocks, such as GameStop and AMC with crazy overvaluations and newly formed companies selling shares that have no real value. The list goes on…
Free ‘easy’ money and a massive debt pile are now the new problem. All the debt built up through the financial crisis and now added to during the fight against the pandemic is unprecedented.
Correction due?
We are likely heading for an abrupt correction, and soon. Mind you, I have thought this before and the crazy market gamble has just continued unabated. Maybe now the market excesses are due a correction? In my opinion it needs it.
Debt, inflation and interest rates will infect the markets at some point – that’s just what happens.