What will 2025 bring to the stock market?

[alebrewer]

Yes, and it has essentially recovered 1,000 points in the last few days.

Bro - you need to lighten up on the hashish...

 

[Airstream]

Bro - you need to lighten up on the hashish...

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And you need to have a longer perspective. Since 1929, corrections on average resulted in an average peak to trough decline of 13.8%, as opposed to an average decline of 35.6% during bear markets, the data showed. Still, investors can take their time piling back into stocks. The average correction lasts 115 days, Yardeni Research showed. So I don’t give a rats behind about a one month decline. The markets were over valued. And just as in other corrections they will come back. Instead of looking at the one month, why don’t you look at the 5 year trend? Maybe you have better hashish.

 

[Gobears81]

Just read an interesting piece about why the markets are fluctuating so much. According to JP Morgan Chase and their research it is largely due to algorithm trading. I think sometimes the average investor doesn’t understand this, and then gets nervous with the gyrations. When a computer can simply make millions of trades in a blink of an eye, this can be problematic. And is why some believe it should be outlawed.

The algorithms can create opportunities by overextending moves in either direction. Some trades were getting too easy (Mag 7/ AI), but the party isn't over just yet.

 

[Charles West]

Despite the hysterical prognostications that the market is crashing or will crash, the reality is the market has merely corrected, which was overdue. It is a sign of a healthy market to correct when given the right stimulus, in this case, a reversion to a privately led economy from one more dependent on government spending. The market will remain within its current range until some other stimulus causes it to rise, such as the passage of the tax bill or a negotiated settlement regarding tariffs.

 

[Fernando]

Markets going up and down by 1% are not too be of concern. It's when the overall trend goes down like now that should have us worry that Trump's policies are affecting the economy adversely.

 

[Joe Flacco]

If you guys are looking for something to buy this year to hold for the next 5+ years, look at the banks. I think this is the last pull back before it breaks out of this 20 year base.

 

[Joe Flacco]

Maybe it makes more sense to just buy XLF since it is already out of the base and the trend is established. Yeah, probably better to look for entry on XLF.

 

[Joe Flacco]

I wouldn't bet against tech but if putting in new money to work I would look at other sectors that didn't lead the first half of the secular bull market. Like financials, home builders, energy.

 

[Fernando]

I wouldn't bet against tech but if putting in new money to work I would look at other sectors that didn't lead the first half of the secular bull market. Like financials, home builders, energy.

How about Tech. Help out Silicon Valley.

 

[Joe Flacco]

How about Tech. Help out Silicon Valley.

Does this make you want to buy the dip?