By the time this post is finished, the Dow may have recovered from its current spot in the basement at DOWN 435!!!
Before we enter tin hat territory, some advice: 1. Don’t buy any stock. 2. Don’t sell any stock. 3. Sit tight.
Exceptions to this advice: 1. No exceptions. 2. Sell if you need/want a capital loss to balance a gain; or have some companies that you have lost confidence in.
I’m pretty adamant about this, and even more so as Mr. Market seems totally unable even to lift his head, much less get out of bed.
On to tin hat territory – why is the market plunging like this? Don’t believe all the fluff as “analysts” try to come up with reasons. In the wonderful phrase that has just popped up on the Web recently, they are clutching their pearls!
Everything they list as a possible cause has been in place for months or more: China’s weak economy, falling oil prices – $28/bbl today!!!, Fed increase in interest rate – 0.25%??? not a big, market-moving deal, possible inflation, possible deflation.
So, why? Why? Answer: 1. “They” are manipulating the stock market for “their” own nefarious purposes. or 2. “They” are trying to take down Donald Trump. Since Sarah “Barracuda” Palin just endorsed him yesterday, that makes him even more dangerous to ???
Who is “they?” Ans. That’s the problem – I don’t know. Maybe even “they” don’t know!
What purpose? Ans. That’s easy. World domination, bwahahahahaha!!!
Seriously, not knowing “why” really is the problem. Past market crashes have had proximate causes: collapse of the dot-coms, collapse of the real estate market are the most recent ones.
Now, the “they” may become more clear when we see what the Obama administrations proposes, or what the folks in Congress propose.
So, keep a close eye on who proposes what solutions to the current “problem.”