Stocks don’t want to stop falling. After a week of relief, it looks like the 2022 stock market crash is back. What’s wrong with the market? Check out the videos on Interactive Brokers, free resources to learn about investing
The stock market had a couple good weeks to rally but now looks like it’s back to falling. Is it the beginning of a full-blown stock market crash or just another move to correct lower? Is it only about interest rates and Russia or is it something more this time? In this stock market live, I’ll share all the stock market news you need to see along with the trends and strategies that will help you invest now. I’ll also show you what is wrong with the market, why stock prices are falling and what really matters right now.
Stocks were looking like they were ready to recover last week before the late-week plunge, dropping more than 4.2% on Thursday and Friday alone. Stocks in the Nasdaq index have now had eight days with a loss of 2% or more out of just 29 in 2022 so far. That’s one-in-four days investors have had to sit through a tough market. Compare that with just 15 of the 252 trading days last year with drops of 2% or more (6%) and just six days in 2019 (2.4%) and it’s obvious that volatility is here to stay for a while.
The question is, is it a sign of a stock market crash to come or can stocks recover? For that, I still believe we can look to the underlying drivers of stocks, corporate profits, and what goes into them for a positive outlook. I’ll detail this later in the newsletter but if you look at those drivers of profits, the outlook is still good which would make the recent selloff and volatility an opportunity.
With investor sentiment turning negative and stocks wobbling, it’s important for long-term investors to remember what really drives stock prices. In the short-term, over months and even a one-year period, it’s true that investor sentiment is the major factor in stocks. Whether investors are optimistic and willing to pay high price-to-earnings multiples on stocks or more bearish and fearful will largely determine the direction of the market.
Over longer periods though, stock prices are a function of the earnings companies report. Stocks are an ownership interest in corporate profits so the value of that ownership is directly tied to how much a company makes long-term.
So when sentiment turns negative and investors worry about the value of their portfolios, it can be helpful to look at the drivers of those long-term earnings. This will either confirm what investors fear, that breaks in the underlying economic factors could cause earnings to fall…or it will soothe investor jitters, confirming that long-term earnings growth is still intact.
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Joseph Hogue, CFA spent nearly a decade as an investment analyst for institutional firms and banks. He now helps people understand their financial lives through debt payoff strategies, investing and ways to save more money. He has appeared on Bloomberg and on sites like CNBC and Morningstar. He holds the Chartered Financial Analyst (CFA) designation and is a veteran of the Marine Corps.
#stockmarket #stockmarketnews #stockmarketlive
Check out the videos on Interactive Brokers, free resources to learn about investing https://mystockmarketbasics.com/interactivebrokersYT
Keep up the excellent job I learn with every video thank you!
How is one supposed to make any kind of decent money in this market without have a major reserve of cash and without playing options? I want to be an investor and get massive gains it seems so difficult I don’t have a lifetime to wait for small cap to begin making huge earnings and begin going green again. Losing hope it’s anything less than a playground for the rich.
It’s a playground for those with patience and conviction. I am slow and dumb compared to others, but I have the patience and conviction. It can take years then it starts popping. I went to court against my family, for approval to continue operating a property. They wanted to sell. I knew the property was good and needed time. Timing can be everything. Well it was the wrong time but I felt that with patience, it would pay off. Finally, last year, after about 10 years, it’s throwing off loads of cash and is worth millions more. They’re all quiet now but resent me nonetheless. Too proud to acknowledge I did right by them.
Excellent info! Thanks for the excellent link to interactive brokers!
I really loved your video profiling 11 dividend stocks, last month. Great info.
Thanks for the update and your effort to bring quality content. Great overview!
Would you consider ALLY bank more of s fintech?
How much is corporate greed adding to inflation ? Corporations like Mcdonald’s, Chipotle, Starbucks, Chevron and so on not only showed up to 60% gains in revenue but decided to increase prices to get richer at the expense of the people that are struggling. Kroger raked in $132 billion in revenue, and the average salaries for their top executives increased—while pay for the median employee fell by 8 percent. I understand that this is not the only cause of increased inflation but it certainly a contributing factor.
No talk about the emergency fed meeting today?
Once again, THANKS for the presentation! We have to take what we can from it and take ACTION from it!
Where’s the beer? 😎🥴
Thanks for the tips, I’ve been keeping my eyes in AT&T and Facebook
Check out Ameriwest Lithium! What do you think?
It’s Monday 4PM CST. 431 thumbs up 15 comments. Just saying. I like your channel. I look into some of suggestions for that thank you.
Ahhh the stock market. The only store on earth where everyone gets pissed off when everything is on sale!
how do you figure that?
@Mario R It’s a Warren Buffet quote. When stocks drop a bunch they are on sale. Same companies available for a much lower price. But people get mad about it.
Continue your good work !
You’re awesome man!
stocks go up, they go down. buy low, sell high. period. dollar cost averaging works no matter what. chill and get excited!
I have a $250k 5 year bank CD that pays a bit over $700 monthly to my checking and is coming due soon. I FIRE’d in 2019 and have been living of this as part of my monthly income portion. Of course today there is no way I could get a 5 year bank CD paying 3.5% so I am looking for a healthy correction so I can put it in SCHD and VYM for monthly income.
Joseph – can you please do a video on the new SEC regulations on BlockFi and the fines they received and are you still keeping your cash savings in stablecoins on BlockFi. Do you feel that is still a relatively safe investment?
Thank you!
People talk about market crash even though these come suddenly without storage. However, a recession can be predicted but not a crash. Spreading anxiety and fear is something that everyone contributes to by spreading guesses without really knowing anything. Most people who spread concern are also hoping for a stock market decline in order to take advantage of the situation.
One stock that I think have great potential is Allarity Therapeutics. They have submitted their first NDA application and their drug Stenoparib has shown very good results against Covid. In addition, they have a unique DRP technology.