Is the market crashing? No.

[libertybele]

Is the market crashing? No.
Here’s what’s happening to stocks, bonds as the Fed aims to end the days of easy money, analysts say

As the stock market has convulsed lower and yields for bonds have surged in recent weeks, culminating in a so-called correction for the Nasdaq Composite Index, average Americans are wondering what’s amiss with Wall Street.

Increasingly, Google searches have been focused on the state of the market (and the economy), and for a good reason.

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The Dow Jones Industrial Average DJIA, -2.99% just posted its worst weekly loss since October 2020 and the S&P 500 SPX, -3.70% and Nasdaq Composite COMP, -4.54% logged their worst weekly percentage drops since March 20, 2020, according to Dow Jones Market Data shows.

Read: The Federal Reserve’s first meeting of 2022 looms as risk of inflation outside of policy makers’ control builds

Searches on Google featured the following popular queries: “Is the market crashing?” And “why is the market crashing?”
What is a market crash?

To be sure, the market isn’t crashing inasmuch as the term “crashing” is even a quantifiable market condition. Declines in stocks and other assets are sometimes described in hyperbolic terms that offer little real substance about the significance of the move.

There is no precise definition for a “crash” but it is usually described in terms of time, suddenness, and/or by severity.

Jay Hatfield, chief investment officer at Infrastructure Capital Management, on Saturday told MarketWatch that he might characterize a crash as a decline in an asset of at least 50%, which could happen swiftly or over a year, but acknowledged that the term is sometimes used too loosely to describe run-of-the-mill downturns. He saw bitcoin’s BTCUSD, -3.10% move as a crash, for example.

He said the overall equity market’s current slump didn’t meet his crash definition, in any regard, but did say stocks were in a fragile state. ..................

https://www.marketwatch.com/story/is-the-market-crashing-no-heres-whats-happening-to-stocks-bonds-as-the-fed-aims-to-end-the-days-of-easy-money-analysts-say-11642892638?mod=home-page

[Free Vulcan]

I'm surprised after the Fed cut off the funny money for pumping up the market that it is doing so well.

We really needed to let some air out of the tires. We are at a healthy and needed 10% correction. If it went down another 10-15% I wouldn't be worried.

[rustynail]

www.youtube.com/watch?v=i2uu6NF2inY

[Cyber Liberty]

I'm surprised after the Fed cut off the funny money for pumping up the market that it is doing so well.

We really needed to let some air out of the tires. We are at a healthy and needed 10% correction. If it went down another 10-15% I wouldn't be worried.

Correct.  10% is a "correction," not a "crash."  By the end of this trading day, it will be down about 10% from the all-time high.  The Dow toyed with a 1,000 point fall from Friday's close for a few minutes, now it's down by 800 or so.  Still 2 1/2 hours from the mercy close.

[DefiantMassRINO]

^VIX is kinda high ...

CBOE Volatility Index (^VIX)
35.63+6.78 (+23.50%)

[Fishrrman]

Let "the market" collapse.
15, 20,000 points, just like that.

It will put an end to "inflation"... quickly.

[libertybele]

Correct.  10% is a "correction," not a "crash."  By the end of this trading day, it will be down about 10% from the all-time high.  The Dow toyed with a 1,000 point fall from Friday's close for a few minutes, now it's down by 800 or so.  Still 2 1/2 hours from the mercy close.

We'll see what happens in the coming weeks. Inflation is continuing to rise, store shelves are empty, perhaps we'll be at war, gas prices are climbing .... all by design.  Who knows what variant they'll inflict on us next.

I think we're heading for a Great Depression; greater than then one in 1929.

[Cyber Liberty]

We'll see what happens in the coming weeks. Inflation is continuing to rise, store shelves are empty, perhaps we'll be at war, gas prices are climbing .... all by design.  Who knows what variant they'll inflict on us next.

I think we're heading for a Great Depression; greater than then one in 1929.

LOL.  The DJIA closed up a hundred points today.

[rustynail]

PPT Rescues S&P From Worst-Ever Start To A Year; Rate-Hike Odds Tumble

https://www.zerohedge.com/markets/ppt-rescues-sp-worst-ever-start-year-rate-hike-odds-tumble

[cato potatoe]

Correction is here in earnest.  I'm told that hard assets and value stocks are more attractive, until the rest of the froth blows away. 

[Free Vulcan]

OMFG I just want to jack slap some of these psychotic wannabe pundits. Since the covid lows we are up more than double. Since Jan '21 to '22 we were up about 30% at the peak.

These people are unstable banshee wailing nutjobs. Learn to read a freakin' chart already and know when to get out at a major top.

It simply is not realistic to think the market should be having these kind of returns that just go on and on...

[Bigun]

OMFG I just want to jack slap some of these psychotic wannabe pundits. Since the covid lows we are up more than double. Since Jan '21 to '22 we were up about 30% at the peak.

These people are unstable banshee wailing nutjobs. Learn to read a freakin' chart already and know when to get out at a major top.

It simply is not realistic to think the market should be having these kind of returns that just go on and on...

I'm sitting on the sidelines currently waiting for the bottom (down 25-30%) I may get back in at that point.

[IsailedawayfromFR]

OMFG I just want to jack slap some of these psychotic wannabe pundits. Since the covid lows we are up more than double. Since Jan '21 to '22 we were up about 30% at the peak.

These people are unstable banshee wailing nutjobs. Learn to read a freakin' chart already and know when to get out at a major top.

It simply is not realistic to think the market should be having these kind of returns that just go on and on...

The freakish rises are mostly the tech stocks, not the rest of the market.  Netflix which just lost 28% of its value last week is an example. 

We have seen these tech bubbles before and this one is likely to be considerably harder due to the present height of tech stocks and the rise of the unsophisticated investors who use Robinhood and the like and believe the certainty of continued growth and not reality.

[libertybele]

The freakish rises are mostly the tech stocks, not the rest of the market.  Netflix which just lost 28% of its value last week is an example. 

We have seen these tech bubbles before and this one is likely to be considerably harder due to the present height of tech stocks and the rise of the unsophisticated investors who use Robinhood and the like and believe the certainty of continued growth and not reality.

The very first tech bubble if I recall correctly coincided with a rise in property and housing values before it burst.  The dramatic rise in property and housing values are happening in several states throughout the country.

I think it's just a matter of time before this bubble bursts; sooner rather than later.

[catfish1957]

^VIX is kinda high ...

CBOE Volatility Index (^VIX)
35.63+6.78 (+23.50%)

Was in the 70's during the Mar. '20 correction.

And hate be a broken record, but  highly inflationary economy's markets often go up just to keep up with said incremental inflation.

The enevitable dystopian end game?  A few years ago, I laid odds at 50/50 of market crash like or worse than '29 versus  a Weimar Republic  type hyperinflationary event.

Now, I am leaning 65/35 toward hyperinflation.  Especially if the Chicom/Russians are successful in decoupling the world's currencies to the USD.

[catfish1957]

I'm sitting on the sidelines currently waiting for the bottom (down 25-30%) I may get back in at that point.

I'd say that pretty much 55% of my equity portfolio is strong defensive positions.  And I have no plans to add to them.

It's going to take more like a 50% correction to really peak my interest.  But like I said in my last post....  We may never see that, as our money may become worth less than the paper it is printed on.  A 1 Million DJIA means nothing, if bread costs $500 a loaf.

In either scenario, We will see our country truly become the largest 3rd world nation on the planet.  And the imbecilles who have run this country the past 40 years will have been responsible, and hopefully held to account. 

[catfish1957]

The very first tech bubble if I recall correctly coincided with a rise in property and housing values before it burst.  The dramatic rise in property and housing values are happening in several states throughout the country.

I think it's just a matter of time before this bubble bursts; sooner rather than later.

Fully concur, but that bubble also might be in the stripes of runaway inflation. Don't be shocked if we see land, silver, and gold governmental confiscation.

[IsailedawayfromFR]

I'd say that pretty much 55% of my equity portfolio is strong defensive positions.  And I have no plans to add to them.

It's going to take more like a 50% correction to really peak my interest.  But like I said in my last post....  We may never see that, as our money may become worth less than the paper it is printed on.  A 1 Million DJIA means nothing, if bread costs $500 a loaf.

In either scenario, We will see our country truly become the largest 3rd world nation on the planet.  And the imbecilles who have run this country the past 40 years will have been responsible, and hopefully held to account.

Mine is about 60% held in cash, ST bonds and TIPS, and strong Defensive stocks, mostly Dividend Aristocrats.  Have been selling off to get into the position the weaker stocks and longer-term bonds.

[catfish1957]

Mine is about 60% held in cash, ST bonds and TIPS, and strong Defensive stocks, mostly Dividend Aristocrats.  Have been selling off to get into the position the weaker stocks and longer-term bonds.

Good plan.  If there is one bright spot in the pending financial disaster, it will be watching Tech titans jumping out of the 10th story windows.

[Gefn]

 

[Right_in_Virginia]

Dow futures jump as Microsoft leads, Fed decision on tap
Fed Chairman Powell will hold his press conference at 2:30 pm ET.
Fox News, Jan 26, 2022

https://www.foxbusiness.com/markets/stock-futures-microsoft-fed-decision-inflation-rate-olicy-statements

[sneakypete]

I think we're heading for a Great Depression; greater than then one in 1929.

@libertybele

Well,that IS a proven method of getting people to stand in bread lines and get used to be totally dependent on the goobermint.

Not that *I* think the goobermint would stoop so low,mind you.