Well the major indexes finally entered that closely watched 20% decline from an all-time-high constituting a bear market. It was quite the run in terms of the bull market, which started in early 2009. But like every party, they all must come to an end. However, the rapidity of this decline is nothing short of historic. It’s always possible that there can be a bounce back and perhaps even a sizeable one – but we believe the markets have finally caught up with the economic reality of the world. Many major global indexes have given back years of stock market gains. The UK for instance has given back 8 years of gains – and did so in the course of one month! What this confirms for us is the fact that the bull market from 2009 was built on a foundation of sand. So, what we’re witnessing is simply economic gravity taking root of stock markets that were highly overvalued. It’s ok to be “steady as she goes.” We don’t need these massive melt-ups, only to be followed by their massive melt-downs. This does serious damage to millions of people as most are not informed of the topics we discuss here at The Kapital News. This is a lack of leadership from our elected officials and the members of the media for not providing the full-picture.
Millions of Americans are set to retire in waves over the coming years. Their portfolios just lost 20-30%. What do they do now? These are the real questions facing real people. And, oh, despite this recent sell-off, we’ve still yet to see any major corporation file for bankruptcy or even be downgraded to junk status – just wait until this happens and watch how the markets respond. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Recession #Invest #Gold #Silver #Bonds #USD #Politics #COVID19 #USA