Maser wrote:
If things drop seriously, what will reflate the markets? Lowering rates again? Strong economy? Pure price inflation?
Look at every major correction or mini crash over the past 5 years. What do they all have in common?
1) Twitter bears smugly declaring the end of the modern financial system (finger wagging, "I Told You So," the rich shall be eaten).
2) Massive V shape recoveries to legendary all time highs.
There is absolutely nothing wrong with this economy right now - in fact, we have so much demand and so much money that we literally don't have enough bodies to meet the current labor demand! GDP last year was 6% and is expected to be like 4% or more this year, and we're at under 4% unemployment which no one even thought was possible just 10 years ago.
But every other dipsh!t on social media would have you believe we're Wiemar Germany with our 7% inflation. You know who those people are on Twitter? And oh no a bunch of 20 somethings are upset because they can't buy their dream house right of college and life isn't fair :(. Bunch of fvcking losers just clogging up the system with noise.
I remember so well in the fall of 2018 when I was absolutely certain the market was gonna crash and the Fed was gonna raise interest rates. But agip kept saying "just look at inflation and TIPS, the rate hikes are unjustified and the market is trying to tell the Fed." I brushed it off and called him a retard probably, idk, seems likely.
A month later, guess what? The Fed admits that the rate hikes are kinda unjustified given the lack of inflation. Epic V shape recovery followed and I went from being up like 300% on a short position down to like 2% up. I had to scalp wheat futures the rest of the year to bring my portfolio back up. Fvcking wheat futures!
Always look at the big picture and don't fall for the doomer sh!t that passes for "insight."