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Response to tclambert (Reply #1)

Tue Jun 2, 2020, 07:16 AM

3. The S&P 500 left correction territory for the first time since Feb., it closed Monday at 3056

down 9.7% from the all time high of 3386 reached February 19. Correction territory is 10% to 20% down, Bear markets are 20% and more down. At less than 10% down, we're in "pullback" territory now (pullback territory is between 5% and 10%).

The S&P 500 first closed above 3056 (the Monday close level) on 11/1/2019, so only investors in an S&P 500 index fund who put money in on or after that date (7 months ago) have lost any money (and ignoring dividends).

I don't understand it, I'm still waiting for the Wiley E. Coyote moment, maybe when 2nd quarter earnings start being announced, which is a ways away.

But almost unlimited federal spending and bond - buying (IOW lending $trillions to corporations) is boosting the market. Plus yields on the alternatives to stocks: bonds and other fixed income investments, are piddling. So people with money to invest just throw up their hands and buy stocks / stock funds.

And as always, the market is forward-looking. Dropping Covid19 cases and deaths, and businesses opening up is what people are seeing happening now.

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Tansy_Gold Jun 2020 OP
tclambert Jun 2020 #1
Warpy Jun 2020 #2
LineLineNew Reply The S&P 500 left correction territory for the first time since Feb., it closed Monday at 3056
progree Jun 2020 #3
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