What is up with the Stock Market?

[CapricornFarm]

Anyone else taking a beating? 401K is way down! Is there another Depression on the horizon?

 

[oldhenlikesdogs]

Unless you are actively drawing from your accounts, a drop is in my opinion, a good thing as I can buy shares at a cheaper rate, and more of them. When the prices climb back up so do my profits. I welcome drops, for now.

 

[MrsMistyReal]

Yes it's horrible & not just that.Look at gas prices, health care, food, the list is never ending.

 

[CapricornFarm]

Unless you are actively drawing from your accounts, a drop is in my opinion, a good thing as I can buy shares at a cheaper rate, and more of them. When the prices climb back up so do my profits. I welcome drops, for now.

Our accounts are at their lowest value since we started them

 

[Harmony Fowl]

It’s molting.

 

[MissNutmeg]

Yeah I noticed that too.

 

[MissNutmeg]

It was in December I think, everything was soaring! Thennnnnnnnnnnnn iiittt drrroooopppss.

 

[oldhenlikesdogs]

Our accounts are at their lowest value since we started them

We made big gains during the last drop. If people panic and move their money than the loses become real. If you leave stuff alone and ride the low your account will grow. It's all paper gains and losses until you are cashing out.

 

[Dayrel]

The market has been on a bull run for more than 9 years. Note the major pullbacks in 1987, 2000-2003 and 2008 in the image below.

The Fed injected a massive amount of money into the economy during Quantitative Easing phases 1-3. The Fed has reversed direction and has been pulling money out of the system (Quantitative Tightening) starting in 2017. Given that a lot of the QE money ended up on bank balance sheets and stock values, it isn't surprising that pulling money out of the system will tend to depress stock prices. In the short run, prices may change direction, but I wouldn't be surprised if we are either in or close to another major correction.

PS- If you want to translate this into political terms, QE coincided pretty much 100% with the Obama presidency and QT started in the first year of the Trump presidency. Make of it what you will.

 

[Chickassan]

I laughed at that...I'm ashamed of myself and proud of your sense of humor.

It’s molting.