The U.S. stock market is in an amendment It sounds a little scary. This means that the stock market is down more than 10% from its last record, which we saw a few days ago.
With this red sea on Wall Street, it’s hard to remember right now.
Yet, I have to remember corrections are not everything. You know because of everything illogical around us.
This is a healthy check in the market This has happened seven times in the last 10 years.
Thus, it is not uncommon for something like this to happen.
If you are really worried, if the market declines by 20%, that will take us to the bear market.
This means that this epic run of our stock for the last 10 years will suddenly end, but we are not in that position yet.
So, why is this happening? Why is the market amending? In fact, there are two main things going on here.
The number one is clear, and that is the coronavirus. No one has a good handle on how long it will last, how many people are going to affect when it will end.
The second thing to keep in mind is that most analysts will tell you. That the stock market coming in 2020 was actually more expensive.
Probably more expensive, and so this perfect recipe of ours is going to be a big sale when we are afraid that the stock. More prices paid before the market.
Someone on Wall Street told me. You know, “everyone’s fingers were spinning on the New Year sales button,” and on top of that. We have this uncertainty right now.
“People don’t understand how this will affect the profits of companies and corporations.
And the big question here is whether the United States or any other country can turn a country into a currency.”
So, how likely is it that the U.S. economy will overtake the currency? That’s a question I always get, and I wish I knew the magic answer too.
There is a good standard here to think about a month ago before we really knew the coronavirus.
How coronavirus widespread it was and how big the impact would be, the fear of demutualization was about 20% probable.
That is very common In one year, you know when there is no risk, it is about 15% to 20% chance of demutualization.
Today, it has increased from 30% to 40%, so we are a little better at demutualization than a month ago.
But note that people have not crossed the 50% mark This is not a guarantee that we will go to democratization.
The best predictors really wait for about two months. But then in the summer, you have a pretty strong reb return and fall, but of course, we’ll know more with things.
Remember, a demutualization is two-fourths, so six months of negative activity.
So far, we have not seen any signs that there is a negative month in the United States.
Let alone a negative quarter. We had a very strong January. So, we are coming to a place as good as possible. And we have to see how long it will last.