Everyone is running around like a chicken with their heads cut off trying to find out why the market is selling off.
This started when Trump nominated Warsh because Warsh wants to end QE. This pulls liquidity out of the markets and demand for dollars goes up.
When this happens you want to own stocks that produce tons of free cash and give it as dividends.
Think Kraft, Conagra, Flowers Foods, etc. and sell the companies that need dollars to operate rather than being able to give it to the investors.
If the market demands more oil own the oil companies, right now the market is demanding dollars. Own the dollar generating companies.
Here’s what’s actually going on in the markets.
byu/ContemplatingGavre inStockMarket
Posted by ContemplatingGavre
16 Comments
this is just a dip like in april with the tariffs stuff. if you think otherwise you’re new to this shit lol
Market was a Tinder box waiting to burn! It was due for a massive correction anyhow.
he claims he wants QT in his early days and now, but u think corrupt Trump would choose him if he wanted QT? He’ll flip the second he’s in th fed
The market is more irrational than anyone’s girlfriend. In this market that Trump manipulated, being rational in an environment that’s completely irrational has led to losses. I advise just holding this storm out. Real companies with good fundamentals are plummeting but some companies that sell shits and giggles at a loss are skyrocketing. This correction is definitely shaking some people out. [In short there’s absolutely no rhyme and reason other than it feels like going down because it wants to and is being manipulated]
We’re off 2.3% from S&P all time highs. We’re not even in a correction. The market is up ~20% since Trump won the election.
Corrections are down 5,10,20% or more. Then it’s time to buy.
The market is crashing because companies are laying off anyone they can to increase profit margins to justify their enormous spending on AI. AI needs people. People don’t need AI. AI is the downfall of humanity.
then what does this mean for the non dividend givers like big tech companies?
I mean the job numbers released the last few days are horrendous
Orange is the new red
If this is a dip I’d hate to see the chips
He also wants to lower interest rates, which creates more dollars. Especially in comparison to the current smaller QE regime.
The markets are like taking steps down each day and see what sort of gets purchased.
What dip? We are almost at ATHs
$GME
That’s the post!
You have done very little research on anything
Interesting take, but markets usually move on a mix of rates, earnings, inflation data, and positioning, not just one nomination. Cash flow matters, but broad sell offs tend to have multiple drivers at once.