Yes, last I checked, we’re still in a Bear Market!
Basically, since the beginning of January 2022, we’ve been down sh!t’s creek, I’m not going to sugar coat it… other than the fact that historically, bear markets exist in this world, they don’t last as long as bull markets (knock on wood) and they do come to an end.
This whole SVB disaster does remind me of the Fall of 2008, and that’s around the time I started getting heavy into the stock market. So, for most of my stock market life, I’ve only experienced Bull Markets. And I missed the dot.com bust and wasn’t aware of anything prior to that.
Once again, I blame Trump!
Here’s why… he continually bullied the Federal Reserve to lower interest rates, a number of times, and to just about zero… why would he do this when the economy was doing great?
He was politically motivated to win a second term. He wanted to look good, hoping the stock market and the economy in general would look good. But, no one planned for the Covid Pandemic, which ended up creating a perfect storm. And never forget what happened in March 2020 on Trump’s watch!
You see, when you continually lower interest rates to about zero? When the economy doesn’t need that… Eventually, it has to all go back up, and the Covid Pandemic created a perfect storm of inflation, and Trump’s tariffs (remember those) are still in place and this contributed to inflation as well, as corporations simply transfer the higher tariffs to the consumer, us!
Events like the War in Ukraine, and our cold war with China, simply complicates matters further.
And we’ve been trying to bounce back from all of this since December of 2019 when Covid hit.
Day trading is good, though. All this volatility makes it easier to day trade.