highhand
2022-06-17

The Price of Recession! 

Let's make a wild guess for tonight! 

[Sly] S&P 500 will bounce back 2% to 3739 after last night's 3.25% sell off. Hmm?

Don't be mistaken. If it rebounds, it will be BUT a slow decline down into the abyss that  I suspect will end by 2022. Yes, a painful process for all but inevitable. 

I could be wrong and it could be a steep drop right to the bottom by June end! Haha [Happy] Unlikely, though. 

Whatever the case, 3200 for S&P500 is highly probable. Current valuation at 3666 has some parts of recession factored in, but maybe not all. Further bad news (e.g. higher inflation in June, poorer earnings for Q2, etc...) would open the floodgates for a steep plunge as shown in the CAPITULATION phase of the stock market cycle. That looks like where we are now. What do you think? [Doubt] 

It's going to be a slow crawl back up. However, it will be worth the wait. For most, this might be this first "real" long drawn bear market experience. (No, COVID down and up cycle doesn't count [Grin] ). 

The market might finally recover many many months later,  and the satisfaction of delayed gratification would feel all the more sweeter! 

TGIF everyone! 

@TigerStars@Mainstreet_Trades@MillionaireTiger

Will the possible recession push S&P 500 to 3500?
S&P 500 sits below 3700 after Fed's 75bp rate hikes... Is the recession already priced in? If a recession really happens, will it push S&P 500 to 3500? Share to win coins!
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Comments

  • Lynn098
    2022-06-19
    Lynn098
    Agree that the US market has not seen its bottom yet. What about the HK market? Will there be divergence between the US and HK market ?
    • highhand
      macro environment affects all markets but HK and China might not be strongly correlated. they already drop more than US. 
  • Trevelyan
    2022-06-17
    Trevelyan
    💭So the rebound possibly be a chance to LOCK max-profits or min-losses in the year, if it bounce back
  • CynthiaVogt
    2022-06-17
    CynthiaVogt
    Thanks. I think it may drop to 3100 one day...
  • greedycat
    2022-06-19
    greedycat
    like一个呗
  • Juliaaa11
    2022-06-17
    Juliaaa11
    Agree with you. 3.2k is highly probable! 😟
  • MOASS
    2022-06-17
    MOASS
    Can't stop won't stop
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