It’s a bit of a comedy out there in the world.
Th real news is that no matter how little exposure you think you had to the global markets, you are bleeding.
The RECESSION chatter is in full bloom. The real problem with the word recession in 2016 is we are living/moving into a digital economy. This is the first ever digital recession. The digital era is a massive deflationary force because of the abundance of content and reach. Furthermore, we spend so much time on our phones, we just don’t need as much in general. Entertainment is under a massive shift. Transportation is about sharing. Travel is moved to last minute. Remote teams have never been easier to build and maintain. DEFLATION.
No matter how perfectly diversified/allocated you think you are…panics have a way of making everything go down together.
I mentioned in my last post that Biotechs would do WORSE if the S&P kept getting beat down and that has happened.
When stocks trade below their 200 day moving averages, bad things can keep happening.
Panic selling is way sillier than panic buying. Panic buying happens because of the fear of missing out. Nobody piles in 100 percent. Panic selling is about the fear of getting a return OF your capital so it can happens swift and cuts deep. By the way, thanks to Vanguard and ETF’s we all own the goddman same stocks at the same time.
On Stocktwits I am jabbing and poking at indexes, but it’s not really worth working so hard.
I trust NO research from Wall Street. It is worse than the last cycle and they have more conflicts than ever.
There is NO way a healthy digital economy should have record profits accrue to JP Morgan and Goldman Sachs after the fines they have paid. I am angry about it, but I love the game and won’t storm the castle.
I am worried about others storming the castles to be honest.
Too small to fail feels pretty good right now.