Dow plunging 525 points. S p plummeting 2. 37 nasdaq nosediving 3. 02 . I got to tell you, i think this decline is healthy this market needed a beatdown if only a learning experience for people who thought it was too easy when the market is roaring, a lot of investors seem to forget the most fundamental rule, buy low, sell high they want to buy high and sell higher the problem with that strategy is when stocks go down, they go down hard. You tend to lose money faster than you make it rather than being panicked by the sell off you in a very proverse way should be cheering for it we needed this why . Because we needed to break the nasty pattern of 1999 to 2000 so many people refer to during the run the leaders never took a breather. They kept charging higher and higher until the market peaked when they collapsed. Millions of investors led to the slaughter house. I began to wonder we might be doomed to repeat the mistakes of the. Com era. The markets led by a hand full of Tech Companies b
Any new stimulus in sight. And that tiktok trade, you cant really trade it, can you, because its not a public company, but bytedance is formally seeking chinas approval for a deal with oracle and walmart, those are two publiclytraded companies. Yes, they are, jim lets talk markets lets start with that. You know, its funny, i dont know what you make of the pull back today, to the extent we are going to have one or what weve been seeing in apple lately. I keep wondering coming back to that softbank option purchase that we kind of we talked about it for a day or two and then we moved on. Right. You know, a number of people have come back on it with me, jim, and sort of said maybe it had a bigger impact than we realized in terms of the run up of some of these names. It did jack the market up in 1999 fashion which, you know, you know, led to 20002001 which was a disaster and it was frankly unnatural other than zoom almost every one of those stocks that they took up have been crushed apple t
Unraveling the dow gained 131 and s p inched up but tech, yes, the tech heavy nasdaq declined. 60 . I say get used to this this kind of volatility is now here to stay i think september is the month this whole new investors who believe that stocks only go up, i think they get a rude awakening. Sure, long term stocks do go higher they have. They tend to do so but not long run, were also dead short term, when they go down, they go down hard. Which is why you need some cash on the sidelines cash king to treat these pull backs as buying opportunities and not be afraid. With that in mind, whats the game plan for next week . Housing is among the strongest groups thanks to low mortgage rates. Thats how lenar could rally 40 . I dont want to hear this gain is fake because the Federal Reserve is propping up the economy. When you take that money to the bank, they dont care. In our reports on money and after the close and unfortunately, i think the easy money here is made even though i think its a
Bloomberg, im Tom Mackenzie. Asia has struggles after the s p hits another record. European futures are flat. In the u. K. , crucial data is due , Andrew Bailey expects quite a drop as the Central Bank Ways weather to cut rates. The next move will be a cut. The question is how long we have to maintain this level of restriction. Tom divergence grows and fed officials reaffirm the higher for longer approach. Christine lagarde says there is a strong likelihood of a cut. Lets check in on these markets. The fed reiterating higher for longer. European futures are flat, s p notching the 24th record high this year by the end of the close yesterday. And the volatility in focus ahead of an nvidia earnings with market suggesting 8 moves depending on what comes through from the maker of Semi Conductors. European futures with modest gains. Ftse 100 adding 12 points. S p unchanged, nasdaq pushed higher, 18,000, a modest gain. It will be sensitive to earnings. The pound is in focus. Headline around 2