5 ms·
"Correction" refers to the idea that the market was previously overpriced by 10%. In this case one would say it was not pricing in the risk of the virus correct
by all_blue_chucks 7y ago
"Correction" refers to the idea that the market was previously overpriced by 10%. In this case one would say it was not pricing in the risk of the virus correctly, until now.
If it falls 20% from the high, they stop calling it a correction and start calling it a bear market.
Of course, the market went up thirty freaking percent last year to put this price action in perspective.
- opportune 7y agoSaying the market went up 30% last year is a little deceptive. There was a sharp correction in December right before the year started and it was down like 15-20% from the high in September
- notduncansmith 7y agoYeah, my bet is that the virus is just helping the market get back to normal by getting people to start taking their values seriously. The market has been seriously inflated for a while. It is interesting, in light of the financial situation, how China and the US are handling the virus. Too attached to the status quo and trying to prevent a more serious correction by downplaying it? Or deliberately under-responding for other reasons?
- blaser-waffle 7y ago> Too attached to the status quo and trying to prevent a more serious correction by downplaying it? Or deliberately under-responding for other reasons? Conspiracy territory, but if I'm not in China I'm quietly hoping it gets crazy for another month or two, drives stock prices down further, and then buy at low rates. The constant "we don't know what's really going on!" doom and gloom articles make me think they're either pandering desperately for clickbate, or trying to drive the market further down (maybe both?).
- notduncansmith 7y ago> Conspiracy territory True, I should assume incompetence before malice. Something about it just feels too calculated to me. I guess we’ll just have to wait and see shrug