MANY major Indices have entered correction or worse....
Russell 2000 is way down
S&P 500 Down 489.82 points or 10.63% since July 2023...IF you annualize it it is really bad...
Mighty Nasdaq is down down down 1803.54 points or 12.48%....in 5 months.....
DOW is only down 3282.41 points or a measly 9.19%.....
Russell 2000 is down " mother of all 18.00% "
Finally NVDA laden SOX is only down down 16.72% based on closing numbers, Intraday they were all down more on Friday....
SO.....
What is going on in US market,
OR
What CHANGED.....
Market has suddenly realized that " market forces are predicting higher Interest rates for many years to come "
Era of low low Interest rates may be gone FOREVER
The above realization is enough to crush PE....
We are going through PE compression in a hurry...
ALL HIGH PE STOCKS are in more trouble based on current prices which has been knocked down down down
SO PAY ATTENTION to PE of all stocks in every sector....
Do NOT bank on earnings reports UNLESS it IS super super strong & guidance is good also
HOPE is NOT an investing or trading thesis ANYMORE
YES
MUCH has CHANGED
Realize It and adjust immediately.....
Look @ technical health of each stock in your portfolio.....
Are they above 200 DMA, that is a sign of good technical picture....
IS your stock ABOVE 50 DMA...IF IT IS...you are in traders heaven....YOU are very lucky then....
Please ignore my humor or satire, REALITY is very very sobering.....
Good luck with your own thesis & comfort level....
BLOG does NOT give buy or sell.
Saleem