The Long Term Investor

To continue......in the past we have seen EXTENDED time periods where stocks did nothing. Look at the 1970's and early 1980's. We had time periods back than where it took YEARS for the averages to get back to previous highs. There is no guarantee that this can NOT happen now. We are NOT in some NEW NORMAL. Everything the markets have gone through in the past is ON THE TABLE today.....same as always. In FACT......I think many investors today are even MORE......MUCH MORE......likely to invest based on FADS and Social Media foolishness than ever before in history.

 

So......to continue......what do you do? Well first you do what is right for YOU. It does not matter what anyone else does. If the right thing for you is to BAIL OUT.....well than BAIL OUT. If the right thing is to REPOSITION your holdings and adjust your risk and exposure.....well do it.

FOR ME.......the right thing is to just continue to be fully invested for the long term as usual. Compared to where I was in October of 2019.........or about three years ago......I am STILL WAY UP. I am willing to take the losses over the short term of 2-4 YEARS of gains if that is what it takes.

That is the thing about the averages.....Like the SP500....and their long term return of 10-11%. If you look at the shorter term time periods......sometimes 2-3-4 YEARS.......there are time periods of NEGATIVE markets and returns. Same as there are years and time periods of......two.....three years.......with extremely elevated returns. It is an average.......NOT an.....ANNUAL GUARANTEE. It LURCHES up and down.....sometimes for years......to achieve that average.

This is why.......YEARS COUNT. By years I mean how many years you have ahead of you as an investor. People under age 40.....with 25-30-35-40.......years ahead of them as investors can aford to take the PAIN for a long time.....years. Those with a short time to retirement or in retirement.......those in their 50's or 60's or above.....NOT SO MUCH.

 

I notice that BITCOIN.....something I dont do......other than a small fraction of ONE BITCOIN......is now threatening to drop into the $20,000 range. I dont follow or research CRYPTO since I have no interest in it as any sort of investment. BUT....it is interesting that it is NOT proving to be any sort of hedge to market weakness.

 

to continue......I try to be EXTREMELY CLINICAL when it comes to the markets and investing. That is my default personality anyway. That makes it easy for me to simply sit through this sort of time period. I dont get emotional or upset when the markets are not cooperating. For me....my mind set is......WHAT IT IS......IT IS.

I am looking forward to about December.....if we are still negative at that point I expect to have the $20,000 to $25,000 of free cash to add in to my account. I am also looking forward to October when the Social Security cost of living is announced. I am expecting it to be in the 7-9% range......a HISTORIC increase for people like me that are on Social Security.

SO......I will take what little gains and bits and pieces.....that I can get. If the best I can get over the rest of the year is the......OPPORTUNITY.....to invest some money later in the year at a MARKET LOW.....or.....get a big raise in SS......I will celebrate it. There is always some positive impact or gain to be had.....even in very negative time periods.

 

So to BOIL all the above down........what is going on right now........is simply the REALITY of long term investing.

 

I like this little article. POOR BOEING. I have to admit that when I saw the story of them moving to DC I thought the same thing as this little article. In the end........the actual begining of the collapse of Boeing started when they left Seattle and their roots. A classic SAD CASE or management EGO, HUBRIS, and stupidity.

Boeing is losing the plane race. So it packed up and left for Washington

https://www.cnn.com/2022/05/09/business/boeing-headquarters-move/index.html

(BOLD is my opinion OR what I consider important content)

"New York (CNN Business) Boeing is moving its headquarters from Chicago to a suburb of Washington, DC. But some analysts think this move is one in the wrong direction.

Boeing was based in Seattle from its founding in 1916 to 2001. During its heyday it was renowned as an engineering-driven company that made the best, safest planes. But many industry watchers felt that reputation was lost as Boeing shifted to focus on the bottom line — and they point to its 2001 decision to move headquarters from Seattle to Chicago as a stark sign of that ill-advised shift.

The company's Thursday announcement that it will move once again, to Arlington, Virginia, only gives critics more fuel: By moving into the shadow of both the Pentagon and Congress, Boeing seems to be signaling it has lost the commercial race to Airbus and wants to be seen as primarily a defense and space contractor.

The fact that the announcement comes the same week Airbus (EADSF) revealed it's increasing production of commercial jets at its factory in Mobile, Alabama, only seems to drive home that point.

"One company is saying 'We're going to build lots of jets.' The other is saying 'We're going to lobby the Pentagon and Congress for defense dollars.' It's a big contrast," said Richard Aboulafia, managing director at AeroDynamic Advisory and a leading aerospace analyst.

Boeing said in a press release that the Arlington move is designed to bring the company closer to its "customers and stakeholders, and its access to world-class engineering and technical talent."

'The road not taken'

Aboulafia isn't surprised Boeing decided to move its headquarters to Arlington, but he is disappointed. A move back to the Seattle area would have sent a strong signal that Boeing is was once again ready to embrace engineering, he added.

"It would have been great for morale and shown an intent to focus on their badly neglected commercial airline products," said Aboulafia. "Imagine the power if they said 'We're going to back to our roots.' It's just disappointing. It's the road not taken."

Boeing's engineering and quality problems have posed major challenges for the company. The crashes of two of 737 Max jets that killed all 346 people on board the flights led to a crippling 20-month grounding of the plane. It also was one of the most expensive corporate blunders in history, costing Boeing in excess of $20 billion. But it's had problems, delays and financial charges for just about all of its other passenger jets too.

While the Max is now back in the air carrying passengers in most markets around the globe, that hasn't solved perhaps its most serious problem: It's has fallen well behind Airbus in commercial plane sales and deliveries, particularly among single-aisle jets.

Cozying up to the Pentagon and Congress could help Boeing in its defense and space businesses, but even in those fields it's struggling to keep up with other defense contractors like Lockheed (LMT) and Raytheon (RTN), as well as upstart space companies such as SpaceX.

Plus, moving to suburban DC doesn't get Boeing many benefits, said Ron Epstein, aerospace analyst for Bank of America. The company already has nearly 100 lobbyists and a lobbying budget of $13.4 million a year, according to the Center for Responsive Politics' Open Secrets website, which tracks lobbying. That's the fifth most of any individual company.

"I don't think anyone would accuse Boeing of not having enough presence in DC," said Epstein. "When I saw the announcement, it was a bit of a head-scratcher. You have to ask, what does that get them?"
It's not just analysts and critics in the media who are questioning Boeing's culture. Last week, Domhnal Slattery, the CEO of Avolon, one of the world's leading aircraft leasing companies and a major Boeing customer, suggested the company needs a change in culture — and maybe leadership.

"I think it's fair to say that Boeing has lost its way," he said at the Airfinance Journal conference in Dublin on Thursday, in comments first reported by Reuters. "Boeing has a storied history...They build great airplanes. But it's said that culture eats strategy for breakfast and that is what has happened at Boeing."

A spokesman for Avolon confirmed the comments, although he cautioned that Slattery wasn't speaking specifically about Boeing's headquarters decision.

Rep. Peter DeFazio, the Oregon Democrat who chairs the House Transportation Committee, also blasted Boeing's move.
"Moving their headquarters to Chicago and away from their roots in the Pacific Northwest was a tragic mistake that... empowered Wall Street bean-counters over the line engineers who built their once-great reputation," he said in a statement. "Boeing's problem isn't a lack of access to government, but rather its ongoing production problems and the failures of management and the board that led to the fatal crashes of the 737 Max."

"Boeing should focus on making safe airplanes — not lobbying federal regulators and Congress," he concluded.
Some of the company's problems — particularly the body blow it caused to airlines' finances and demand for new planes — were beyond Boeing's control. Even Boeing CEO Dave Calhoun admits most of the problems have been self-inflicted.
"I will be the first to admit that they were not events caused by the outside world, but unfortunately, missteps inside," he told investors in a January conference call. Still, he insisted Boeing has taken steps to improve its attention to engineering.

"Our culture is focused on getting as close to our work as we possibly can from the very top of the company through the engineering rank," he said. "I think we're getting much better. In fact, we're getting really good at it."

Beyond the Max and the pandemic, however, Boeing has other problems to solve. Quality control issues with its widebody 787 Dreamliner has forced delivery to be on hold for nearly a year. And certification problems for its newest widebody, the 777X, has pushed back its planned first delivery of the passenger version by two years, to at least 2025.
Meanwhile, Boeing's attempts to fix all of its problems with the Max, the 777X and Dreamliner has taken time and attention away from its original plan to come up with a new long-range single-aisle jet to compete with the hot selling Airbus A321XLR.

"Pretty much every single one of their programs has taken a [financial] charge, and that's across both commercial and defense," said Epstein. "It's a hard thing to do, to design and build aircraft. Nobody's perfect. But Boeing seems to have more warts on their programs than all of their peers. It all goes back to engineering. Is moving to Arlington changing the engineering culture in a good way? It's hard to see.""

MY COMMENT

GOSH.....who would know......culture matters. In EVERYTHING.....but especially in business. The move out of Seattle for Boeing and the management culture that drove that move.....was a HISTORIC BUSINESS BLUNDER. This is the perfect example of how a great company can be quickly destroyed by POOR management and self absorbed out of touch management.

What a waste of a perfectly good company. This definitely reminds me of much of the management STUPIDITY that is rampant today. The.......TOTAL.....focus of a business and management should be on the......BUSINESS.....nothing more nothing less.

 

HERE is the markets today.....not that any of this short term stuff matters.......to those of us that are siting and waiting.

Stock market news live updates: Stocks sink as volatility grips markets

https://finance.yahoo.com/news/stock-market-news-live-updates-may-9-2022-114440942.html

(BOLD is my opinion OR what I consider important content)

"U.S. stocks fell Monday morning to extend last week's losses, as investors looked ahead to more data this week on inflation and earnings to gauge the strength of the economy and corporate profits as the Federal Reserve continues to tighten monetary policy.

The S&P 500 dropped more than 2% intraday set a fresh year-to-date low of just over 4,000. This added to losses after the index posted a fifth straight weekly decline last week. The Nasdaq Composite sank by another more than 2.5%, and the Dow fell by more than 400 points.

Investors this week are awaiting more data on the state of inflation in the U.S., which will help show how much more aggressive the Fed many need to be in order to rein in elevated price pressures. Wednesday's Consumer Price Index (CPI) and Thursday's Producer Price Index (PPI) for April are expected to show a deceleration in price increases, suggesting March may have been the peak in the rate of price increases across the economy.

This data will come in the wake of the Fed's latest monetary policy decision and press conference from Federal Reserve Chair Jerome Powell, which was met with heightened volatility among risk assets. Stocks spiked and then slid, and Treasury yields marched higher following the monetary policy decision, as investors appraised whether the tools at the central bank's disposal will be sufficient to keep inflation from becoming further entrenched while preserving economic growth.

"We knew the Fed was going to hike rates 50 basis points — it was the most telegraphed hike in the history of mankind. But the markets sold off into it. And then they finally did it and it's like, okay, it's done," Eric Diton, The Wealth Alliance president and managing director, told Yahoo Finance Live on Friday. "And so you got a lot of short covering and you got a big rally."

"That was not the real deal. The real deal was what followed ... and that is that there's a tremendous amount of uncertainty out there," he added. "Yes, we know the Fed's going to hike. How many times they're going to hike? There's a huge disparity between where rates are and where the inflation rate is. Is the Fed going to have to get up to 6% or 7%, or is inflation going to come down, they're going to meet in the middle? That uncertainty is one of the big factors that's driving this market to continue to come down."

Other concerns to economic growth have also abounded recently, as Russia's war in Ukraine and China's renewed virus-related lockdowns stoked concerns over further persistent supply chain disruptions. Many strategists agreed that the next moves in the market would be driven by Fed's response to inflation amid this backdrop.

"Looking forward, the path of the market will depend on the Fed's battle against inflation," David Kostin, Goldman Sachs chief U.S. equity strategist, wrote in a note. "In our base case, the negative impact on valuations from higher real rates will be partially offset by a narrowing yield gap. If recession risk rises, interest rates may fall but not by enough to prevent equity multiple sand share prices from falling further."

Meanwhile, earnings season will continue this week with major names including Disney (DIS), Peloton (PTON) and Rivian Automotive (RIVN) reporting results. So far, 85% of S&P 500 components have reported actual results, according to FactSet. And as of Friday, the expected earnings growth rate for the S&P 500 was 9.1%, which, if maintained, would represent the slowest increase for the index since the fourth quarter of 2020 and fall below its average five-year growth rate of 15.0%.

10:52 a.m. ET: Bitcoin falls to lowest level since July 2021, dragging down crypto-linked stocks

The selloff across risk assets extended to cryptocurrencies, with Bitcoin prices sinking to their lowest level in nearly one year during Monday's session.

Prices for the largest cryptocurrency by market cap dropped below $33,000, or the least since July 2021. Ethereum also sank by about 5% to trade below $2,400. The declines among some of the major tokens and alt-coins dragged down cryptocurrency-related stocks like Coinbase, which saw shares decline by 14% intraday to below $90 per share. Riot Blockchain shares sank by 15.5%, and Marathon Digital Holdings shares fell 14%."

MY COMMENT

In my own perverse way......reading the above brings a smile to my face.......and makes me shake my head. The short term markets are so.....DUMB.

 

I just looked at my account for the first time today. of course.....I am down for the day.....but....I was surprised that I was down by less than the SP500 and way less than the NASDAQ.

Are we seeing some little bit of strength in the big tech names......perhaps. I am definately being helped today by the NON-TECH holdings that help to anchor my portfolio a little bit in time periods like we are in right now. My winners that are helping me today are Home Depot and Costco. Some of my other non-tech stocks, like Honeywell, are also helping today even though they are in the red.

Drip, drip, drip.......the year continues.

I have been thinking about some of my friends that over the past few years started to think they were great stock pickers. It is easy to be a great stock picker and investor when the market direction is only one way......straight UP. What is hard is realizing......when it is happening....that it is simply the markets.......NOT.....your sudden skill as an investor. Some of the people that I know are retired and I KNOW they gradually got sucked into taking more and more risk as the markets went up. I dont talk to them about investing much......but.....I know they are probably SHOCKED that they suddenly have lost 20-25% of their money.

One thing that I do as a long term investor with 45+ years of experience.......I try to stay STEADY and NOT get caught up in the shorter term mania and deviate from my long time strategy. My long term goal remains the same as what it has been for many decades.......average a long term total return of 10% or more. My secondary goal is the same as always....see if I can beat the SP500 each year......but take NO active steps to do so. My portfolio remains the same.......a bit more than half in my ten stocks......the same as usual......and......a bit less than 50% in the two funds.....the SP500 Index and the Fidelity Contra fund.....for balance. I am sure that the continuation of the current market downturn WILL result in my portfolio becoming more in line with where it started......50% in the funds and 50% in the stocks.

It is all about BALANCE and not allowing my own stock picking to DOMINATE and overwhelm my portfolio. I do it in a single portfolio. BUT....others might do it with multiple portfolios. For example..... TireSmoke on here has his risky stock picks in one portfolio which he balances with his Index Fund based 401K portfolio.

This little DIP.....will be a good educational experience for many investors. With the PAIN comes valuable lessons that if absorbed will make you a better investor as you move forward in life. Many investors....having invested ONLY in the good times of the past 13 years......will come out of the past couple of years as more seasoned investors with a more rounded view of what the markets can do......especially over the short term. I am defining short term as up to.....THREE YEARS. As people on here know I define long term as at the minimum FIVE YEARS......but better....SEVEN YEARS MINIMUM.

 

I have no plans to sell anything or do anything. As a long term....fully invested all the time investor......I will do nothing in response to the current short term events and environment.

AS USUAL.........HERE is my current PORTFOLIO MODEL.

I am once again posting my PORTFOLIO MODEL. My initial criteria to start the process to consider a business are.......BIG CAP, AMERICAN, DIVIDEND PAYING, GREAT MANAGEMENT, ICONIC PRODUCT, WORLD WIDE LEADER IN THEIR FIELD, LONG TERM HORIZON, etc, etc, etc.

PORTFOLIO MODEL

"Here is my "PORTFOLIO MODEL" for all accounts managed which is the basis for MUCH of my discussion in this thread. I am re-posting this since I often talk in this thread about my portfolio model. My custom in the past on this sort of thread was to re-post my portfolio model every once in a while since I will tend to talk about it once in a while. I "manage" six portfolios for various family including a trust. ALL are set up in this fashion. If I was starting this portfolio today, lets say with $200,000. I would put half the money into the stock side of the portfolio, with an equal amount going into each stock. The other half of the money would go into the fund side of the portfolio, with an equal amount going into each fund. As is my long time custom, I would than let the portfolio run as it wished with NO re-balancing, in other words, I would let the winners run. Over the LONG TERM of investing in this style (at least in my actual portfolios), the stock side seems to reach and settle in at about 59% of the total portfolio and the fund side at about 41% of the total portfolio over time. That is a GOOD THING since it tells me that my stock picks are generally beating the funds over the longer term. AND....since the funds in the account generally meet or beat the SP500, that is a VERY good thing.

As mentioned in a post in this thread, I include the funds in the portfolio as a counter-balance to my investing BIAS and stock picking BIAS and to add a top active management fund that often beats the SP500 (Fidelity Contra Fund) and a SP500 Index Fund to get broad exposure to the best 500 companies in AMERICAN business and economy. The funds also give me broad diversification as a counter-balance to my very concentrated 10 stock portfolio. At the same time the funds double and triple up on my individual stock holdings............that I consider the BEST individual businesses in the WORLD.

STOCKS:

Alphabet Inc
Amazon
Apple
Costco
Home Depot
Honeywell
Microsoft
Nike
Nvidia
Tesla

MUTUAL FUNDS:

SP500 Index Fund
Fidelity Contra Fund

CAUTION: This is a moderate aggressive to aggressive portfolio on the stock side with the small concentration of stocks and the mix of stocks that I hold and with the concentration of big name tech stocks. Especially for my age group. (72). So for anyone considering this sort of portfolio, be careful and consider your risk tolerance and where you are in your life and financial needs. I am able to do this sort of portfolio since my stock market account is NOT needed for my retirement income AND I have a fairly HIGH RISK TOLERANCE. In addition I am a fully invested, all the time, LONG TERM investor. (LONG TERM meaning many years, 5, 10, 20, years or more)"

MY COMMENT

This portfolio is HIGHLY CONCENTRATED on the big cap side of things. OBVIOUSLY between the funds and my ten stock holdings there is MUCH doubling and tripling up on the stocks. THAT is INTENTIONAL. I strongly subscribe to the view of Buffett and some others that TOO MUCH diversification kills returns. I do NOT believe in the current diversification FAD that most people seem to now follow.......or think they are following. I DO NOT do bonds and think the current level of bonds held by younger investors.....those under age 50.....is extremely foolish.I DO NOT do market timing or Technical Analysis.

#9914

 

BE STRONG.

 

This little adventure in.......MMT.....Modern Monetary theory......is not working out too well. A BRUTAL lesson for all the government people and theoretical economists in.....REALITY.

 

Another market day marked off the calendar this year. Can anyone guess that I was in the red today? I ended up getting beat by the SP500 by 0.16%. At least I beat the NASDAQ.

I had one bright spot by the close....Home Depot.....up by just under 1%. My hero.

I am not distinctly in a BEAR MARKET in my primary portfolio.....down by (-22%).

 

I see from one of the headlines out there that we are NOW at year 2022.......LOWS of the year. The SP500 has now LOST about 14 months of gains........and.....I would say there are more to come.

"The S&P 500 dropped more than 3% and ended at its lowest level since March 2021, closing below 4,000. The Nasdaq Composite plunged by 4.3% as technology stocks came under renewed pressure. And the Dow shed more than 650 points, or 2%, to settle at 32,245.70."

https://finance.yahoo.com/news/stock-market-news-live-updates-may-9-2022-114440942.html

 

I think you are right Spud. I dont......"feel"......the pain and panic yet out there in the day to day world.

 

Good old BLOOMBERG. I think they are spot on with this little bit of market analysis.

Stocks Sink to 13-Month Low as U.S. Curve Steepens: Markets Wrap

https://finance.yahoo.com/news/u-futures-fall-asia-stocks-222244400.html

(BOLD is my opinion OR what I consider important content)

"(Bloomberg) -- Stocks tumbled to a 13-month low in a widespread selloff amid concern about the Federal Reserve’s ability to tame inflationary spirals without throwing the economy into a recession.

The slide in the S&P 500 topped 3%, while the Treasury curve steepened, with the gap between two- and 30-year rates hitting the widest since mid-March as short-dated bonds led the gains. Investors are increasingly worried about the limits to Fed policy at a time when supply-chain disruptions pose a significant threat to inflation amid a ravaging war in Ukraine and China’s Covid lockdowns. Data Monday showed U.S. consumers project prices in three years to be higher compared with a month ago -- a troubling sign for officials trying to keep longer-term expectations anchored.

Pandemic-era stars bore the brunt of the selling, with Cathie Wood’s flagship exchange-traded fund sinking about 10% and an ETF tracking newly public companies down the most since the onset of the pandemic. Bitcoin slipped below $32,000, falling more than 50% from its all-time high. The rout also spread to energy producers, easily the market’s strongest sector in 2022. The group plunged over 8% as crude slid. Big tech was not spared, with the likes of Tesla Inc., Amazon.com Inc. and Nvidia Corp. off by at least 5%. The Cboe Volatility Index spiked to its highest in two months.

Traders will be closely watching a host of central bank speakers this week after Chair Jerome Powell on Wednesday played down the option of 75 basis-point rate hike. Fed Bank of Atlanta President Raphael Bostic told Bloomberg Television he favors policy makers continuing to raise rates by half-point increments rather than doing anything larger. In a later interview with Reuters broadcast on Twitter, Bostic added that while he saw low odds for a 75-basis-point hike in the next several months, he’s “not taking anything off the table.”

The April consumer-price index report on Wednesday is the highlight of an otherwise quiet week for economic releases. Inflation is projected to have moderated on both a monthly and annual basis, partly reflecting a dip in gasoline prices that have since picked back up. While inflation likely peaked in March at 8.5%, the hottest in four decades, price pressures are expected to remain elevated, keeping Fed officials on track to steadily lift borrowing costs in the months ahead.

High inflation readings, a slowing economy and aggressive tightening by the Fed to rein in soaring prices have weighed on risk appetite and valuations. Even if an outright recession is avoided, the outlook for U.S. stocks isn’t particularly bright, according to Goldman Sachs Group Inc. strategists.

“Swings will remain large until the path of inflation is clarified,” strategists led by David Kostin wrote in a note to clients, adding that “tightening financial conditions and poor market liquidity make it difficult to argue for a short-term rally similar in size to the one in late March.”

More comments:

• “The big question is if inflation can head below 3% without the Fed causing a recession,” wrote Dennis DeBusschere, founder of 22V Research. “Until that question is answered, financial conditions are biased tighter, and markets will struggle despite oversold conditions.”
  
  
• “Sentiment is bearish, but not at capitulation levels, market liquidity is poor which leads to greater volatility, and investors are pulling money out of equity and bond funds rather than putting it in,” wrote Solita Marcelli, chief investment officer Americas at UBS Global Wealth Management. “These technical factors can dominate economic news over a few weeks or couple of months, and it will probably take that long for inflation improvement to become apparent.”"

MY COMMENT

GREAT......just what we need........the FED out there talking. A sure way to tank the markets even more.

Poor Cathy Wood....down by 10% today. At this rate her fund will hit a value of......"0"......in a month or two. Just kidding......it can not .......in theory......go to ZERO. She and her shareholders are taking a BRUTAL....EPIC POUNDING........by the markets week after week. I am starting to think that she is going to end up as a......one hit wonder. Although I dont particularly follow her funds......so what do I know.

Actually....at this point......I believe it would be a good thing for the economy to enter a recession. We need the economy to TANK.......in other words.......extreme therapy for the markets. We need to see some.....fear and panic......starting to grip people. I dont see any hope for the FED to put even a slight dent in inflation.....without a nasty recession. So.....bring it on.

 

I will put up this link for anyone that is currently in the housing markets. Not going to post the whole article.....it would just be piling on. According to this little article mortgage rates are at about 5.27% at the moment.

As mortgage rates spike, credit scores are more crucial than ever
While consumers are feeling the squeeze, the key to a solid mortgage rate is within your control.

https://www.cnbc.com/select/high-mortgage-rates-credit-score/

 

NOW......we are starting to be talking about.....real money.

Tech giants lost more than $1 trillion in value in the last three trading days

https://www.cnbc.com/2022/05/09/tec...lion-in-value-in-last-three-trading-days.html

(BOLD is my opinion OR what I consider important content)

"Key Points

• Apple, the most valuable publicly traded company, has seen its market capitalization trimmed by over $200 billion since Wednesday, when the U.S. central bank made its latest move.
• Staples have performed better than technology since then.

Struggling FAANG stocks are trading at attractive levels, says Fundstrat’s Tom Lee

The world’s largest technology companies have shed over $1 trillion in value in just three trading sessions.

Stocks at large have sold off since the Federal Reserve raised its benchmark interest rate on Wednesday, but technology has endured more pain than other sectors of the economy. Investors now have less interest in what drove business during a strong bull market in recent years, including during the pandemic, and are now pushing more money toward safer pockets of the market, including staples such as Campbell Soup, General Mills and J.M. Smucker.



Market cap lost during last three trading sessions.
CNBC

Apple, the world’s most valuable public company, has shed $220 billion in value since the close of trading on Wednesday, the day Fed Chairman Jerome Powell declared that inflation was running too high and that there were no plans for a rate hike more than half of a percentage point.

Markets first moved up on Powell’s comments, but the optimism sputtered out in the following days. Stocks went lower on Thursday, fell again on Friday and then still lower on Monday. The S&P 500 U.S. stock index fell below the $4,000 mark on Monday, having declined by 7% since Wednesday’s close, while the Invesco Nasdaq 100 ETF is off by nearly 10% during the same period."

MY COMMENT

I happen to own them ALL.......NVDA, GOOGL, TSLA, MSFT, and AMZN. Can anyone point to any real fundamental reason for these losses......NO. But that is what happens in a BEAR MARKET......stocks just go down because they want to go down. Where or when it ends......nobody knows.