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

  • 📰 MarketWatch
  • ⏱ Reading Time:
  • 78 sec. here
  • 3 min. at publisher
  • 📊 Quality Score:
  • News: 35%
  • Publisher: 97%

Australia News News

Australia Australia Latest News,Australia Australia Headlines

Americans are wondering what's amiss with Wall Street after steep declines in stocks and a surge in bond yields in recent weeks. Here's how to think about it.

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.Sign up for our Market Watch Newsletters here

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. The confluence of uncertainties has markets in or near a correction or headed for a bear market, which are terms that are used with more precision when talking about market declines.

Worth noting also, the small-capitalization Russell 2000 index RUT, -1.78% was 18.6% from its recent peak. “Excessive Fed liquidity had the effect of inflating many asset classes, including meme stocks, unprofitable tech stocks, SPACs[special-purpose acquisition companies], and cryptocurrency,” Hatfield said.

How often do market’s slump Investors ought to be forgiven for thinking that markets only go up. The stock market has been resilient, even during the pandemic.Sam Stovall, chief investment strategist at CFRA, said that he viewed the current slump for markets as “a very typical tumble.” “[Declines of] zero to 5%, I call noise but the closer we get to 5% the louder the noise,” he said. He said a 5-10% decline qualifies as a pullback, a drop of at least 10% is a correction for him and a fall of 20% or greater is a bear market.

Stovall says that this downturn may also be exacerbated by seasonal factors. The researcher said that markets tend to do poorly in the second year of a president’s tenure. “We call it the sophomore slump,” he said.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 3. in AU
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

RemindMe_OfThis in 6 months

No, stock market is not crashing, new traders are not losing money and margin calls DEFINITELY will not come 😂

N00bZ panic 😱 but we investors just 😂

For all those who are new to this working from home Bitcoin trading options Here's a little tip: Get a trusted Bitcoin expert and stick to her Alexander__Jeni Invest and play at similar times each day. Because : In times of chaos, your investment is your anchor to success

Bookmarked. We'll revisit.

This dude thinks Google searches are indicative of sentiment overall Holy crap just throw this article in the trash

Now if you guys could only fix bigcharts, which hasn't worked since dawn.

The Fed is the 🐳 all those 15/hr jobs will get fill this year

Australia Australia Latest News, Australia Australia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

'Godfather' of technical analysis says the stock market could fall 20% or more, but don't panic: 'This market really, really did unbelievable' for 18 monthsAre we entering a bear market? This prominent market technician shared his insights after the Nasdaq Composite ($COMP) crossed below its 200-day moving average for the first time in nearly two years. Конечно, уже давно пора More of a dream come true creating multiple sources of incomes through bitcoin. Truly proud of the decision of getting started with the help of mr tyron_robert7 thanks allot for your effort been given... We have been in a bear market for 2 months 🙄🙄🙄
Source: MarketWatch - 🏆 3. / 97 Read more »