Why a total crash is not currently possible
I’ll keep it simple and short because my smooth brain cannot elaborate much on technical analysis and alikes.
Currently every single bear that is forcasting an imminent crash in the market hopes to buy the dip. Everyone is looking at the market hoping that it will go down as it did in March 2020 due to covid, especially all those that missed out on investment opportunities and have now some liquidity.
Essentially, there’s a huge amount of people with the finger on the buy button as soon as anything goes down.
I’m not saying that the market won’t crash, as it always does, it will eventually go down some significant percentage, but I’m not holding my breath for anything more than single digit losses, quickly regained by quick buyers.
There’s just still too much liquidity floating around, and for once I actually think that inflation is fueling investments in the stock market by retail investors. There’s a growing fear that cash sitting in bank accounts will quickly devalue and currently there aren’t many ways to invest relatively small amounts of money with very high potential gains.
If you are a bear and you want to downvote, first commit yourself at not buying anything before it’s at least 20% down.
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September 14, 2021 at 04:39AM