I have been waiting and preparing it for a while if you have not seen stocks fell sharply today after reports showed that worries among consumers and businesses about President Donald Trump’s policies may be hitting the U.S. economy. Good timing for me as I had a large position of puts that were about to expire worthless, but ended the day up 200-1000%!
The S&P 500 sank 1.7% for its worst day in two months. The Dow Jones Industrial Average dropped 748 points, or 1.7%, and the Nasdaq composite tumbled 2.2%.
There were several weaker-than-expected reports on the economy that have been putting pressure on markets, but institutions have held up markets until this point. One such report suggested U.S. business activity is close to stalling, with growth slowing to a 17-month low. The preliminary report from S&P Global said activity unexpectedly shrank for U.S. services businesses, and many in the survey reported slumping optimism because of worries about Trump's plans for the economy.
Things look bleak, with the University of Michigan consumer sentiment index falling to 64.7 in February, a decline of nearly 10% and a steeper drop than expected as consumers raised concerns about higher inflation ahead from possible new tariffs. The five-year inflation outlook in the survey was 3.5%, the highest since 1995. On top of that, existing home sales in the U.S. fell more than expected last month to 4.08 million units. I don't know about you, but things have seemed bad for a little while. In my opinion markets have been irrational and detached from the actual economy maybe this is correction I felt was coming. We will have to see what happens...
How is everyone feeling or what are your thoughts on where markets are heading?
Everything is going bad since years, not just trump election, I'd say since covid, inflation keeps going, things gets more expensive year by year, houses prices skyrocketed and so on
The world feels like it's going to hell. Or maybe it's we finally see the world for what it has been. I know I have had a lot of talk about being taken advantage of by my work. Looking back that's been the norm I'm just not willing to take it on the chin like previous generations. A change is coming and it may be painful and scary but it needs to happen.
That's for sure, things are going to change, there are also countries that don't want to be anymore feeders for others, everyone wants to have his own "sphere" and all economies being interconnected with each other are going to be a trouble
That didn't take long... Quite the reversal from, November when everyone was so happy that he got elected.
Yeah Feb is a painful month for markets in the past I think we are about to see some upset Trumpers. With all the Fed firings and Elon shenanigans I think we are looking at a negative return this year. I think protection and hedges will be important. I know I had a bunch of protection Puts that were about to expire worthless, but eded up big. Timing this market has been tough since it can stay irrational way longer than anyone would think. I'm glad I got lucky yesterday.
I don't know what most of those terms mean :) I wish I knew more about trading, but I just throw my money in my ROTH and my 403B and let it be. I hope it all works out for me in the end.
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After yesterday's news, the crypto market has once again turned bad