Surprisingly, there isn’t much news of interest except for 1 thing. That is the current market crash that has been happening for over 2 weeks.
We are only seeing red now, with no end in sight. Those green days where all our stocks were in the positive seem almost like a dream now. As of today, the market lost all of its 2021 gains it earned so far this year. That is crazy. We basically made no progress at all.
After hours weren’t looking good last night, following the trend downwards. Ark Invest, one of the most popular ETFs has been down, with funds flowing out of them. Nothing is looking good right now.
Jerome Powell spoke yesterday, but really only stirred the market more. After his speech we saw another dip in the market. His normally calm speeches of reassurance seemed to fall on deaf ears. No one believes his statements inflation is not here yet and the market won’t be fully open for years to come.
Investors think otherwise and continue panicking.
Jim Cramer thinks the market is flooded with investment opportunities right now. From SPACs, IPOs and Coinbase coming. But the higher the interest, the more the price goes down. He also thinks we are going to continue to see the price of stocks dip even further.
What’s Causing it?
Institutional investors. My belief is that they are doing what they deem to be safe bets. Trying to protect their clients and their funds. They are focusing more on safer investments, pulling out of technology and energy stocks and going directly into recovery stocks, like cruise lines, airlines and Disney.
Retail investors have bought the dip. Now it has continued to go lower, beyond anyone’s expectations. It’s now the institutional investors that are flowing funds away from the stocks that were driving the market. But I’m sure that won’t last long. Because of the market crash happening, stocks are hitting crazy lows. They will see these opportunities and come back. It’s only a matter of time. Tesla right now is at $620. They will hopefully see this undervalued stock and start pouring money into them to drive the market back on top.
Crypto Holding Steady
Bitcoin and other coins have held strong during this correction. They have fallen. There is no mistaking that. However, they didn’t crash as hard as the market, which is a good thing. Bitcoin has been floating in the $40k range for weeks now, briefly touching $50k.
Some of the money has been flowing into crypto as well, not just going into recovery stocks. I think this has helped stabilize crypto during these hard times.
We are starting to see some positive indicators that prove we could be moving on up in the crypto world, hitting around $85k next month. We are only in the beginning-middle stages of this bull run and still have much more gains to see. Like I said, I think we’ll be seeing $300k by the end of September. So hold onto your coins, it’s going to be a bumpy ride.
When Will It End?
Who knows? I certainly can’t tell you when this crash will end. My portfolio has seen better days, like when it was in my bank account. But I’m still remaining optimistic. I was able to buy into the market at low prices and though they still continued to fall, it will go back up. We are going to see better days soon.
I’m investing for the long-term. So these short-term dips and corrections won’t affect me. It hurts to see all the money lost, but I know when I do touch the money years down the road, I’ll have much more than what I started with.
What To Do During The Crash
Don’t panic sell. Your first step should be to try to buy the dips happening. These stock prices are much lower than ever anticipated. Try to get into the stocks you’ve been wanted now while prices are so undervalued. Amazon is down 27% and Tesla down 31%. There are crazy losses, but could be our huge gains if we add them to our portfolio now.
If you already bought the dip or have no funds to buy stocks, just hold tight. The market will go back up. I recommend not checking your portfolio so often and go about your day. This market dip is only temporary. Don’t panic sell your stocks and lose any and all profit you may have made or will make in the future.
Be patient and wait for this storm to end.
