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S&P Correction: Here’s What Comes Next
Contrary to what you may be inclined to believe if you conceptualize of stocks as poker chips and investing as a kind of upside down casino where the gamblers always win thanks to a benevolent pantheon of gods who perpetually stack the odds in favor of anyone willing to roll the dice, equity market corrections aren't rare.
In fact, the S&P 500 typically suffers a drawdown of around 13% peak-to-trough in a given year. That's the median going back to 1928, Goldman's David Kostin noted, in his
If the banks would prefer to buy T from the Fed, instead of borrowing overnight, how does this impact “everything” going forward? It looks like the overnight lending program is about $1.6 T. That is alot of T’s.
I’m definitely expecting to see reals rise at least another 50bps over the next two months and would put the strike price for a Fed put at S&P 4,000 — if only because it’s a nice round number.