WTF happened? I woke up checked the market decided to not look at it again but still checked a few hrs later, down massive amounts of cash. Just looked and I am actually up on most things
Unpacking the market drop You’ve probably noticed – the markets have been pretty chaotic. A lot of stocks have plunged from their records this year, and the tech-heavy Nasdaq index has officially reached “correction” territory. We’re answering your q’s: Quick refresher, what’s a correction? A “correction” happens when an asset, an index, or an entire market falls 10% or more from its most recent high. And they typically last from days to months. In this case, the Nasdaq — which mostly measures US tech stocks — has fallen 15% from its late November record through yesterday. While they can be painful short-term, they’re normal for markets and can help reset pricier assets. Zooming out: The Nasdaq has had 66 corrections since 1971. Why are we in one? Lots of factors play into corrections, but this one is mostly related to inflation and interest rates. Let’s unpack that… Inflation... is at a 40-year high. To tame soaring prices (think: oil at the pump, bacon at checkout), the Fed is expected to hike interest rates multiple times this year. ETA: as soon as March. Rising rates… can be bad for growth stocks like tech. Higher rates can make US government bonds and savings accounts more attractive vs. riskier assets like tech — whose share prices are often driven by expected future growth. As rates and inflation rise, the value of a company’s potential growth falls. Also… some companies that thrived during the pandemic have seen earnings slow this year, like tech stocks and banks – playing into the correction. TLDR: Tech shares soared during the pandemic while the Fed slashed interest rates to zero to fuel the economy. Now that inflation keeps rising, the Fed is ending the stimulus party — and frothy valuations are being “corrected.” What could be the takeaway for investors like me? It depends on your strategy and other factors like your age, finances, and risk tolerance. For some long-term investors, corrections can be a temporary dip toward reaching investing goals. Portfolios that are diversified across different types of industries and investments can be less affected by corrections when certain assets decline. Of course, even if the marketrecovers, there’s never a guarantee that individual stocks or portfolios will follow the same trajectory. Though some recoveries took longer than others, historically the US market has bounced back from corrections over time. For more on what’s happening in the markets, check out our daily Snacks newsletter. - The Robinhood Team
Anything not affected by a war in Europe is a buy, and anything that doesn't have supply chain issues is a buy. I am thinking Google, Airbnb, Disney are good. Nvidia is in firesale range, love them but fear supply chain issues and Intel is coming out with their gpu soon. Also NVIDIA and AMD both rely on Taiwan semiconductor for manufacturing if your worried about China joining the war then might want to stay away, china won't join the war tho and if they do then you should just buy food and guns instead.
Google is having that stock split, I've been burned on several of those. We'll see. Was thinking Facebook/Meta as it will probably recover and got hit really hard.
I've regained almost all my pre market losses. I think the market is relieved that it finally happened and everyone else has the same idea and is trying to get ahead of things. Unless this escalates then it won't affect much of anything and people realize that. I think domestic travel stuff is pretty safe with the pandemic becoming endemic just in time for summer, and not much chance of a war going on over here. I like Google for a few reasons, they make a lot of income off of travel advertising to they check the reopening box. They don't sell a lot of hardware so not much issues with being supply line shorted. They are a mega cap tech company who prints cash so I feel they are as safe as any company. The split will also make the stock more available to regular investors, they are so damn expensive at the moment. I've been picking up shares here and there plan to sell mid to late summer. Once the spit and reopening buzz hits it's high. I'm going by the history of apple, Nvidia and Tesla splits. All 3 took off post split. That's my theory also, but I also feel like you can't lose with Airbnb at the moment, plan to sell the same time or next earnings bump, I see them at 200 again sometime this year
I hate Facebook, I view investing in them the same as investing in tobacco companies so I won't do it unless I feel it's a sure thing. They are kind of an aging company tho and taken over by boomers, kids don't use them and they are responsible for a lot of our current social ills. I like SNAP and Roblox a lot better. I think the meta transformation was a lame attempt at changing their narrative
Russia’s invasion of Ukraine is already affecting global markets — here’s what it could mean A lot has happened in the past 24 hours: Late yesterday, Russia began a full-scale invasion of Ukraine, with airstrikes reported in Ukraine’s capital and dozens of other cities. Western leaders have condemned the attack and vowed to respond decisively. With all of the conflict’s uncertainty, we’re breaking down what’s happening and how it might affect you as an investor. Why is the conflict impacting markets? Stocks have been falling all year as investors worry about the impact of high inflation and upcoming interest rate hikes. This conflict is weighing on what’s already hurting markets: Uncertainty: While some uncertainty is always a given, high geopolitical turmoil can be bad for stock markets. Some investors have been retreating to "safe-haven assets" like US government bonds, gold, and even "defensive stocks,” which tend to be less affected by volatility (think: healthcare and utilities). Inflation: Global sanctions on Russia could cause prices of oil, food, and other commodities to soar even more. Russia supplies more than a third of the EU’s natural gas and is the world’s largest wheat exporter. FYI: The vast majority of Western companies don't have operations in Russia or Ukraine. But large multinationals that do — from oil giants to carmakers — are bracing for further sanctions that could disrupt their supply chains and operations. How are markets reacting? As the crisis intensifies, stocks have dropped while investors have moved out of more volatile assets and into “safe haven” investments: Stocks fell globally Thursday morningbut some markets have been more affected than others. Germany’s market is down more than the US’s, since Germany has more economic ties with Russia (Russia supplies a third of Germany’s oil). Russian stocks are also slumping. US Treasury bonds are spiking. As demand for US government debt rises, interest rates on those “safe haven” bonds are dropping. While the US dollar is appreciating, the Russian ruble is losing value. Commodities like oil, gold, and wheat are soaring. Crude oil is at a seven-year high as the world worries about reduced supply from Russia, while gold prices are rising as investors seek more stability. How could this play out long term? No one can predict the future, but historically the US market, as represented by the S&P 500 index, has bounced back from these types of conflicts over time. Since 1941, the total fall in the stock market after major geopolitical events was 5% on average — before it eventually recovered after a few months*. Of course, what happened in the past isn’t a guarantee of what could happen in the future. What could be the takeaway for investors like me? A couple important things to keep in mind: Diversification: Spreading a portfolioacross different industries and investment types (think: stocks, bond, cash, real estate) can help hedge risk when certain assets decline. However, it’s important to remember that diversification isn’t guaranteed to prevent loss, especially when markets decline as a whole. Time: Long-terminvestors have more time to potentially recover from market downturns and global conflicts. While certain individual stocks might not recover, the US stock market has historically been resilient over time. While we can provide support as an informational markets resource, the markets are just one aspect of a crisis that has significant implications for human life and global stability.
