A look at the markets shows asset managers are moving money around in ways that suggest they see a recession coming. WSJ’s Dion Rabouin explains what to look for in investments.
Illustration: David FangInstead of, stocks have continued to fall, burning investors who stepped in to buy shares on sale. The S&P 500 has dropped 1.2% on average this year in the week after a one-day loss of at least 1%, according to Dow Jones Market Data. That is the biggest such decline since 1931.
That’s because we are in a bear market. in a Bull market you buy the dip. in a Bear market you sell the rip. The Fed continuing to raise rates into a slowing economy will continue the bear market for a while.
True, if your time horizon is weeks. If not, adding good companies during periods of turmoil is a good strategy over the long term.
I wish I had bought more in the financial crisis. Time is on my side.
💯 and if Bond gurus are right, $SPY $QQQ could have a bear market rally 1-2 weeks but until Powell sees wealth destruction & 18 year stop buying $ARKK this Fed will not pivot. It’s unfortunate, we will see a tremendous amount of pain going forward (near term).
Dollar cost averaging