Originally posted by
Orbs
Indeed Aragorn.
Stocks are having a "dead cat bounce." While trading for only a few minutes up about 120 points. It's like throwing a dead cat off a building and it will of course bounce some. No, I didn't make that up.
In theory, stocks and metals are leading indicators. Yes, gold is rising indicating problems down the road. 6 months out or so. Stocks have been in a bull market forecasting it's going to ok for a while. It's hard to imagine a fundamental event triggered the end of a bull market. Market tops tend to sneak in there with "good news" towards to top - not death, doom and gloom.
What nobody is talking about is if we all live and the resulting boom is fueled by a lot of global demand due to a variety of reasons including reductions inventory, we have not seen the top yet. Nor has gold exploded. Neither has silver.
Companies are searching elsewhere for manufacturing now wanted to diversify. China will loose market share.
I suspect the correction is not over. It will take some time but not that long if history is worth citing. Stocks could come back very strongly forecasting the virus is NOT as bad worldwide as imagined. It would not surprise me to see it loose another 1000 points but find a bottom and rally back very strongly defying all logic as bull markets thrive on fear.
Buy the rumor sell the fact...
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