With the benefit of hindsight, one can conclude that "buy election and sell inauguration" worked well this time.
Now that the market is 10% off the all-time high, set less than a month ago, the speed with which said correction took place is worth noting. Over the past 100 years, there were 25-30 instances of 10%+ corrections. Some, but not all, preceded recessions. A 10%+ market correction occurring within just 3 weeks from the market peak would be approximately in the 75-80th percentile in terms of speed, based on historical data. This means a 3-week 10%+ correction is notably faster than average but not extremely rare.
What is different now, as compared to the 2022 slide, is that portfolio diversification did help. Yields went lower. Certain European and Chinese stocks went up. Gold too. Consumer staples and utilities held ground. Overconcentrated portfolios in the tech space got hammered. Looks like cross-sector rotation is behind us.
The biggest risk going forward remains a policy error. Who's buying the dip now? Happy trading!
With the benefit of hindsight, one can conclude that "buy election and sell inauguration" worked well this time.
Now that the market is 10% off the all-time high, set less than a month ago, the speed with which said correction took place is worth noting. Over the past 100 years, there were 25-30 instances of 10%+ corrections. Some, but not all, preceded recessions. A 10%+ market correction occurring within just 3 weeks from the market peak would be approximately in the 75-80th percentile in terms of speed, based on historical data. This means a 3-week 10%+ correction is notably faster than average but not extremely rare.
What is different now, as compared to the 2022 slide, is that portfolio diversification did help. Yields went lower. Certain European and Chinese stocks went up. Gold too. Consumer staples and utilities held ground. Overconcentrated portfolios in the tech space got hammered. Looks like cross-sector rotation is behind us.
The biggest risk going forward remains a policy error. Who's buying the dip now? Happy trading!
#finance March 2025
BY Random Thoughts
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The picture was mixed overseas. Hong Kong’s Hang Seng Index fell 1.6%, under pressure from U.S. regulatory scrutiny on New York-listed Chinese companies. Stocks were more buoyant in Europe, where Frankfurt’s DAX surged 1.4%. For example, WhatsApp restricted the number of times a user could forward something, and developed automated systems that detect and flag objectionable content. Telegram was co-founded by Pavel and Nikolai Durov, the brothers who had previously created VKontakte. VK is Russia’s equivalent of Facebook, a social network used for public and private messaging, audio and video sharing as well as online gaming. In January, SimpleWeb reported that VK was Russia’s fourth most-visited website, after Yandex, YouTube and Google’s Russian-language homepage. In 2016, Forbes’ Michael Solomon described Pavel Durov (pictured, below) as the “Mark Zuckerberg of Russia.” Artem Kliuchnikov and his family fled Ukraine just days before the Russian invasion. The perpetrators use various names to carry out the investment scams. They may also impersonate or clone licensed capital market intermediaries by using the names, logos, credentials, websites and other details of the legitimate entities to promote the illegal schemes.
from kr
