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One Crowded Theater
Last week, in "Something Wicked This Way Comes," I said it's "becoming more difficult to shake the feeling that something bad is about to happen to the US economy, markets or, quite possibly, both."
US equities haven't managed a winning session since.
Stocks crumbled again Friday, with losses accelerating into the close, a dubious encore to Thursday's unfortunate late afternoon meltdown. The Nasdaq 100 fell at least 1% in every session this week on its way into correction territory (figure on
H-Man, agree with Charlie, dead cat bounce, Wed tells the tale. 50bps rally time; 25bps despair.
Meanwhile, the tragedy continues in DC re the voting rights act.
“ there’s a “high probability” that the average max drawdown in midterm election years [16%] is exceeded in 2022 “
SP50 is -8% YTD, so that’s only another -8%.
The FAANGs look quite able to lose another -8% each. In most cases that would take them to late 2021 levels, that’s only a few months of work lost. Actually, they look quite able to lose significantly more.