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Originally Posted by Marshal Davout
The market is going down ! It seems like the whole Market is waiting for the Profit made by one stock Nvidia the AI Giant ! If they do well then the market can recover; however, if they have messed up, then the market goes down further ?
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I wish I would have noticed this thread earlier. I have been an active market participant since the early 90's, with stocks, futures and Forex. I'll definitely chat with you on this topic.
The stock market hasn't been tied to reality in over 25 years. Wall Street caters to the big investors, so whether you and I have a job doesn't matter when it comes to stocks going up or down. It loves a big money supply, a cheap money supply. So when the Fed acts on interest rates, or the chairman making public statements about the future of their fiscal policy, it really moves a market.
We are in a HUGE bull market run, 16 years so far. A bull market is like the Titanic and it takes a financial iceberg to stop. Even the pandemic couldn't stop it. It crashed as the world shut down, but while the public was panicking, the pros were buying up all the cheap stocks. Same thing happened in 1987 with the sudden crash and recovery.
NVDA is a leader in the AI revolution. What remains to be seen is if AI is real or a scam. We've lived in a world of bubbles for quite a long time now. It can be real estate, pharmaceuticals, precious metals, solar power, EV, etc. Wall Street hypes it up drawing all kinds of money into it and stock prices skyrocket until it blows off. The brokers and pros buy the stocks before the bubble even exists and they need somebody to sell their many millions of shares to once the bubble nears exhaustion. That's why they need the general public to start buying stocks, so they can dump their stocks on the unsuspecting public once they locked in their profits.
When the real collapse comes, you will know it. We will wake up some morning and the markets will be turned upside down (I still remember the Dot Com and the 2007 crashes well).
Until then, you just trade what you see, and what I see at this moment is more upward momentum. Markets don't crash during a presidential election year anyway. However, after the election into 2025, it's anybody's guess, especially if the opposition party wins.