A lot of liquidation has been happening recently and the market doesn't appear to be optimistic about the tariff war, with a lot of back and forth on that front.
Will they? Won't they? How long will it go on for? Will things escalate and get worse?
Businesses will need to be quick to adapt to the changes and it is going to undoubtedly cause a great deal of struggle for many who are already feeling like they're at their limit.
With the market dip coming about recently we've heard a lot of feedback, including comments from billionaire financial experts saying how they can't believe how cheap stocks are thanks to the selloff right now.
With job cuts, talks of inflation, fears over delinquencies, the sentiment appears to be on edge to say the least.
Downturns will always be marketed as buying opportunities.
The narrative commonly held is that markets will always recover and that they trend upward over time, but is this assumption always going to ring true? Many investors might be ignoring the years of cheap money and low interest rates, cheap debt etc, that has flooded the market.
How inflated is the market? Are things overpriced? How much of a correction would it take to reveal the true value of things?
Is past performance ever a guarantee of future results?
Perhaps there is a possibility that prolonged inflation and rising interest rates might challenge this long-standing belief?
At the end of the day the market is always going to be driven by foundations like innovation, economic growth, and productivity. With all of the political turmoil, job losses, and changes in rates etc, it's obvious that things will adjust, we've seen this repeatedly, and the market is resilient in adapting to those valuations over time. For those who have always bet on a recovery, with no time frame in mind, it's historically been shown to be a winning strategy for many.
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this is posted for information purposes only, not financial advice.
Related:
https://www.cnbc.com/2021/03/24/this-chart-shows-why-investors-should-never-try-to-time-the-stock-market.html
