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Personally I don't think so. All the selling so far is first order obvious things... Airlines, travel... The knock on effects are less predictable and will co
by anonuser123456 7y ago
Personally I don't think so. All the selling so far is first order obvious things... Airlines, travel...
The knock on effects are less predictable and will come later in the crisis. A lot of lower income workers are going to be hit hard as service sector takes a big hit. Those workers tend to spend all their income, so every dollar lost there translates to another dollar the broader economy loses.
That's where the Minsky moment will happen IMO.
- deleted 7y ago[deleted]
- vsareto 7y ago>All the selling so far is first order obvious things... Airlines, travel... I'm not an expert, but there's lots of money in index funds too, and those might be getting sold as well. The other first order obvious thing being people will want some cash.
- anonuser123456 7y agoI think it's a wait and see on how much the retail index investor will pull out. A lot of people have been conditioned to "buy and hold"... And the retail brokers have been pushing hard to prevent clients from selling. My broker (Fidelity) went so far as to change the home page to exclude the very nasty graphs that show huge market declines.