Wednesday, May 18, 2022

Bear Market: Bare the Truth

         So, financial markets are wheeling; evaluations are plunging, especially in the oft touted tech sector. Big names like Amazon are being hammered. Elon is pissing on Twitter about Tesla's removal from a favored index. Hmmmmm. Sounds bitchey and juvenile. Call a spade a spade. Broad losses are pushing the market into bear territory(a 20% drop from recent high water marks). Only yesterday, media reported that Warren Buffett was buying stocks; some would say he's following his usual pattern: when people are rushing for the exits, it's time to buy. Well, we'll soon see if this proves to be the case. All this following the slaughter in cryptocurrencies with dips below 80% from earlier price points. This is no doubt a factor, and coupled with inflation, reason to be concerned.

        The rush to gold has not been involved. Investors know that government bills and bonds are a better alternative after years of ultra low interest rates offering <1% to depositors. Now, folks can get a decent return on their money with minimal risk. After decades of poor return on paper, investors now see a return to a normal market with interest rates approaching rates not seen in 30+ years. hang on to your seats, these coming weeks could have investors in for a bumpy ride.

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