In less than one week, the Dow Jones average has lost about 1/4 of all the gains realized since Donald Trump was elected President.
Is this just a long-overdue correction? Or is it the market dropping through a trap door and heading back to pre-Trump times?
What’s that you say? You don’t know?
Me neither.
Before either side goes off an an “I told you so” mantra, may I humbly suggest they wait and see where this actually is going?
I may not be an expert on stocks, but I know that’s good advice.
They always say when you see a financial trend in the headlines it’s time to do the opposite. Just a week or so ago Breitbart asked something like “Can anything stop the good times?” referring to the stock market. This pull back is not a surprise. Since the Dow went up about 8500 points since election day I wouldn’t be surprised to see it lose around 4000 points from it’s high.
Bitcoin was in the headlines too, trading close to $20,000 in mid December. Today it closed at under $7000.
Thinking back to the Dot-com run up, Bitcoin would be the quintessential Dot-com company. Talk about producing absolutely nothing and with no real way of making a profit.
By the “Thinking back to the Dot-com run up” I mean the run up in stock market. That may no have been clear as first written.