Asked 3w ago
Nothing fundamental has really changed. In fact, unemployments in the US went down.
It is good for us to see a healthy retracement after a massive bull run. We don't need to see the stock market make new highs to keep the uptrend alive. This is a great opportunity to add positions if you believe in the fundamentals and business models of such tech companies
In the short-term, it is just noises. Let the long-term game play out.
Because it all tech stocks was way overvalued.
Apple P/E ratio almost 40
Tesla P/E ratio before split was 1000+
Tesla P/E ratio after split was 200+
Everybody wants to get rich quick and they think that the tesla bull run or apple bull run lasts forver.
Nothing lasts forever. Bull markets dont lasts forever.
Now those investors who have potentially lost money might be finicking to sell all of their shares.
But thats called day trading. Most times day trading dont work.
4 more comments
No, sometimes they just fall then climb on their 'random walks on Wall street"
Wait 18 months and reevalute what came about this current 'tech crash'
Hi there, good to see you are keeping up with what happens! There are many interesting reasons that people like to give to short term fluctuations.
Ultimately, shorter term movements are driven primarily by market emotional sentiment.
Longer term movements are driven by valuation.
It is unlikely that stocks will adjust/correct to their valuation in such a short time frame. Bullish sentiment however, was high compared to past months just before the correction. Market sentiment is one of the most accurate indicators. Markets move opposite of what majority feel it’ll do. E.g. if too many are bearish, it tends to move up. This is difficult to explain on a platform as this but if you are interested I am more than happy to share why this happens using
Countless of historical evidence
Micro-detail of why this happens (stop losses and margin calls)
^ I invite you to use this chart and compare it with the S&P500 and see for yourself how accurate taking a contrarian view on market sentiment can be.
No one can predict/ time the market. But you can certainly listen to what the market is hinting to you. This pullback was expected the weekend before it happened if you understand the market.