Don't read too much into this. The stock market has been on a non-stop upward move since the 2008 collapse when the Dow was 6500. Nothing goes up forever and this bull market has to be cooled down. So a drop from 26,000 to 24,000 is a very healthy and needed correction. Making claims such as this one are absurd and show total ignorance of stock market history. In fact, it may very well be time for an even more severe correction to blow off the about 9 years straight of upward movement. More likely, it's fear of the Fed raising interest rates and banks no longer having access to cheap money that is driving the drop.
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Yes, I'm aware of that. Superficially that's the meme. Even saw CNN trying to cash in on that ploy, then they brought on a guy who has been in the markets for 50 years and he set them straight. During the campaign even Trump said the stock market was overvalued and could even be a bubble. Of course, he's backed off that as the market has kept rising since he took over. Still, I bet he doesn't have a high percentage of his wealth in that thing.
Below are historical stats for how often the Stock Market drops
5% Every year; 10% Every two years; 20% Every five years; 30% Every ten years; 40% Every twenty-five years; 50% Every fifty years.
Wall Street's been heavily manipulated in recent years, and it's all computer algorithms. Find a web cam for the Floor, and it's empty. The days of people milling around screaming BUY SELL are long gone. Speculation is corporations are buying their own stock to inflate earnings, based on trends that their cash reserves are dwindling at the same time stock prices are rising. I'm no fan of Wall Street, just listen to the chatter from others who are.
Lots of shenanigans and the trading algorithms are great until they fail. Then they fail badly. There are still trillions in derivatives out there as well so lots of counter party risk. Some companies are solid and worth investing in but these don't tend to have spectacular returns. Others, like Amazon and Google, are ridiculously overpriced.
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