US stock market has been testing patience, strategy, expertise & financial well being of many traders / Investors alike.
It has been a constant relearn process with no end in sight....
March 2019 world was made aware of COVID-19
WHO was slow to react along with entire world.
CHINA was the first nation to react / act on this menace.
CHINA was not taken seriously @ first and it was dubbed " overreaction "
Majority of world ignored the seriousness or financial impact of this new challenge
Some are still in a state of disbelief / denial after almost 4 years...
Personal belief set aside, COVID-19 has altered entire world & its population in more than one way...
Some faced death worldwide 6.6 million....
Some escaped death after suffering traumatic "corona attack " 632 million
These are documented numbers.....
We all are aware of new terminology " Lockdown / shutdown " now very well
CHINA is still shutting down many cities periodically....
With shutdown / lockdown brought many challenges to personal life of entire world
Economic impact has not been documented yet as we are still trying to recover from this ongoing changing variations...
Except for world war 1 & 2 ...I do not recall any event which comes close to COVID-19 issues
Many chose to retire from 9 to 5 grind
Many corporations sought assistance from many governments
Many Industries were shutdown
Many Corporations balance sheets became challenging
Inflation roared UP due to shortages
A war started.....
Central Banks were forced to to tighten money supply and raise interest rates furiously.....
This is where we are today.....
I am surprised that Stock market worldwide is not " way lower " considering all of the above challenges for almost 4 years and counting.....
Interest rate shocker is the last thing this world needed.....in my humble opinion....now we are playing with " fire "
Impact of 7% Mortgage rate in USA is going to take its toll when everyone was trying to take 5th vaccine plus high dose of Flu shot.....
Irrationality of high interest rates is going to weaken many portfolio & net worth further....
No wonder Stock markets worldwide are so jittery.....news driven day to day....
Based on everything which I have gathered nothing will change in a meaningful manner until Fed reverses its "hawkist stance "
SO...we all wait & suffer more and more.....
Good luck with your own take about current scenario.
BLOG does NOT give buy or sell.
Saleem
2 comments:
Hi Stocktrader,
Last week Down 8.03%
YTD Down 14.65%
Saleem
Hi Saleem,
Last week: -12.11% (YTD: -27.98%)
Notable Leaders: BMEA ZENV FLL
Notable Laggards: ENVX GTLB SYM IONQ UPWK PLAY LYFT
It was a brutal week as a post-earnings decline from ENVX as well as serious weakness in some tech stocks weighed heavily. A corporate spending slowdown is pacing the negative momentum as CEOs prepare for a recession, although this contrasts with consumers who have more money in their pocket from higher wages and now-tame gas prices. As for the Fed, we had a decade of low interest rates, low inflation, and moderate growth - a Goldilocks scenario. I think the actual reason for this was exactly the low interest rates! Low interest rates allow for competition and innovation to proliferate through new business formation and existing business expansion plans, activities that keep inflation at bay. Additionally, a low and stable rate environment keeps consumers more measured because they don't fear that their new car/house/iphone interest payments will be more expensive in 6 months. Dare I say that the Fed might be *creating* inflation right now by raising interest rates so aggressively? They might have this exactly wrong.
We have to trade the market we have - it is definitely a time for strong charts and I will continue to prune any stock with persistent weakness/underperformance.
Holdings: SNAP PLAY LYFT FLL SYM UPWK GTLB BMEA ZENV, cash 0%
Stocktrader
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