To The Moon

The stock market opened another downturn as Powell warned that the economy and households will experience some pain as the Fed takes more aggressive steps to curb inflation.

Casey of FBB Capital Partners said 

of the five stages of grief: denial, anger, bargainin, depressionand acceptance, investor sentiment has gone through the first four stages and is now entering the last one.

What are the 5 Stages?

The market psychology of bear markets generally follows a five stages of grief - denial, anger, bargaining, frustration, and acceptance --by Elisabeth Kubler-Ross.

1. Denial: At this initial stage, the prevailing view is that stock market weakness is nothing more than a buying opportunity. Far from being angry (see next phase), investors are rather optimistic. 
2. Anger: Denial is getting harder to sustain as the market correction becomes too severe. Investor sentiment eventually turned into anger, who complained about the unfairness of the pullback.
3. Bargaining: At this stage, investors redirect their energies to figuring out if they can maintain their lifestyle while their portfolios take a hit; retirees recalibrate their financial plans.
4. Depression: As the market continues to slide, people realize that spending cuts aren't enough. There will be major changes in lifestyle.
5. Acceptance: In the final stage, investors throw in the towel. They surrendered to the bear market and stopped even imagining when it would end. They see any sign of a stronger market as a "fool's rally".

Analysts says investors entered the last one?

Casey said:

Investors budded during several previous stock market rallies, especially $S&P 500(.SPX)$ rebounded strongly from the June lows by about 17%.

Investors are now approaching the stage of 'acceptance', especially as the Fed acknowledges that a soft landing is less likely and even allows the economy to fall into recession.

Do you agree with him?

What stage are you at?

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