Stimulus, re opening businesses, and no masks. We should be rocketing to the moon right? Well today we were down, and that was a shocker to a lot of people. Tech is the reason, and everyone is so tech heavy in the indices. Like Tesla was a big part of some of these etfs, and it is on its way to being cut in half.
But lets talk about why tech is down, since they have been super strong in the lock down. Well that is just it they have been super strong in the lock down meaning we are becoming unlocked. Money will be flowing else where, and not to the techs so earnings are going to be adjusted down. Such as people will be going to Casinos, movies, bowling allies and getting back to living. That means huge money going else where, amazon not needed as much as people go back to stores, and just a re shifting of spending.
Coupled with rising interest rates, people are heading for the doors, and as you say gold. A hedge play down today, that can signal margin is beginning to become a issue. People are selling everything, everyone, and everywhere.