Bull traps" like the one going on in the US stock market, are exceedingly rare. Stock prices, rising for over a decade have been "vaporized" by this decline.
Like Netflix, a darling of the Fang Nasdaq 100 stocks, it traded for 701 a share in mid November 2021. Friday it was changing hands at 180. That's a decline of 521 points in just 6 months ! That money above now simply ceases to exist at it's former valuation.
There are literally hundreds of stocks, that have fallen 50 to 90 % ,from their all time highs reached in the witching month of Feb.2021. That's when the majority of stocks started to crack, and begin to roll over.
If you are tempted to outsmart this "knife falling " stock market, and buy the continual fall off the cliff stock price valuations in 2022, just be aware that there are trillions of dollars that have come before you, that have simply been "vaporized " by trying to do the exact same thing.
Friend, seems like not many but you and I have stayed with our views about this delusionary financial environment until this bitter unfolding. This is only the beginning. It will not be pretty when the rotted foundations are finally rooted out AFTER the collapse of every single ivory tower resting on it. When the stock market collapse is near complete, THAT is when the depression begins. Would be foolish to think otherwise. Nature's hand strikes very hard when it's laws have been defied and defiled for this long.
The_Unwind
⋅
@supere, Well put. Your insights are intensely correct as is normal. You understand, You get it. This house of cards is now revealing itself, peeling back layer upon layer. In a way, it is shocking.. What lay just behind the curtain
dRends35
⋅
So not moon for stocks do you think I should go all in XRP?
Think you're right.... timing is the question.... together with what the Central Banks will do to restrain the fall. What we do know is that the excessive liquidity that was pumped into the markets 2008 - 2021 needs to be unwound / and what we also know is, this will result in a devaluation of assets - all asset values including real estate. What we don't know is whether this will be a controlled unwind or a rout. If the latter the longer term economic consequences are imponderable .... I unfortunately anticipate a poorly controlled deflationary cycle with panic selling at the closing stages of this cycle gripping all markets ......but we're not "there" yet
makkam01
⋅
@mjcpaull, agree. Unfortunately I am in long now so will have to wait it out. it might take a long time but what goes down must go up again some time in the future (not just the moments of volatility). I will just have to be patient since selloff is not an option for me, and play with some of my other cash very carefully as cautioned above by the_unwind thanks for that.
marcolopes
⋅
@makkam01, What goes down 50% must go UP 100% do reach the previous levels! Interiorize this... as many times as it takes!...
The_Unwind
⋅
@mjcpaull, It will take time for all of this to unwind. We are only at the tip of the iceberg.
thelion01
⋅
This is just the beginning of creaking down…lots of people still think this “recession” barely is over.