SPX, face bearish potential.
Hello! π Today I want to share some fundamental analysis with you.
π One thing that history has taught us is to be fearful when others are greedy, and greedy when others are fearful.
During the Great Depression, stock prices soared to record highs and oversaturated the stock market. Agricultural and industrial over production left businesses and manufacturers with overflowing stock, and as prices ticked consumerism declined. After that, businesses failed and stock prices plunged 34% ina single week. After 2 years, Dow would face it's lowest point in history, a 90% decrease from its highs before the crash.
What the Great Depression taught us is important; do not easily succumb to high PE ratios and overvalued blue chip stocks. Value investing is the better alternative than growth investing, for which any investor who thinks the market can keep growing forever is in for a lesson taught by Mr. Market himself.
Now, we are right into September with economical reports and interest rates decisions to be made by the FED. Through this high-volatile month, S&P has seen an average decrease of 5.4%, in the month alone. We have already seen short term declines to large cal stocks, such as Nvidia, Amd, and Intel. Based on historical forecast, the market could be in for further declines. Historical patterns seem to be unfolding in this order:
1. S&P tops
2. Major Pullback
3. Fully Recovers
4. September Rate Cuts
5...$S&P 500(.SPX)$
This could not be the end of the market sell off. Stocks could plummet to new lows.
But in this bear market, can bring up opportunities. If the whole market is crashing, some fundamentally strong businesses could suffer losses.
For example, $Celsius Holdings, Inc.(CELH)$
Thank you for reading my article, I hope you great investing and great returns.
@Tiger_comments @TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire Appreciate if you can give my article a boost so other tigers can benefit from my investing thesis.
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- PandoraHaggaiΒ·09-10It's always good to assess potential risks in the market.LikeReport
- KSRΒ·09-11πLikeReport