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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives
SPY 690.270.0%Dec 26 4:00 PM EST

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Drygulch Dan
GROUND ZERO™
Hawkmoon
To: GROUND ZERO™ who wrote (169725)3/10/2022 8:32:33 AM
From: stsimon3 Recommendations  Read Replies (1) of 220727
 
Mine is likely a minority view, but many stocks have been in a bubble for the last 2 years. The Fed has put its thumb on the scale making buy the dip the rational action to make money. I am assuming that the Fed will take its thumb off the scale making price discovery more accurate.

Combine the above with the uncertainty of the war in Europe and the coming elections in the U.S., along with continued supply chain issues and rampant inflation, and stocks can drop a long way.

We haven't begun to see what companies will go bankrupt or what hedge funds may blow up. There are enough risks that we could see stocks with weak earnings and weak balance sheets decline 80% from their highs with some declining 100%.

I'd be looking for a 50% decline off the highs for larger companies. There will also be winners, as there are in most bear markets.

If the Fed chickens out and wavers on inflation, then the party resumes....
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