On the opening minutes of the stock market open on Tuesday, the bearish momentum from Monday truly showed its face. Dow plunged more than 800 points, and did it’s best to make a recovery.
Since the U.S. Market dictates the rest of the stock markets, similar to how Bitcoin dictates most of the altcoin market, Europe went down 2%, Japan 4.7%, and Hong Kong 5.1%. In the crypto world, this may be considered a small loss, but for the stock trading world that’s huge.
Experienced investors would have saw this coming, as the market as a whole had a relative calm for the past few months. If you use the bullinger bands, you'll see that the bands get thinner and thinner as time approached today. With that theory, you'd know that it's either going to explode up or down.
There are also plenty of worries about inflation, stemming from the bond market. The looming negative issue that everyone is thinking about is: the U.S. economy could overheat at any moment, and the Federal Reserve is going to raise the interest rate, so that it can pump money back into the government. If that happens, then the stock market won't look as lucrative as it is now; it won't make as much return as the interest rates would. This has also been indicated due to the interest rate decreasing lower and lower. At one point, the government is just goint to need more money. It's always a cycle.
If you think about it, money is psychological. So for everything that's going up, there's always going down since there's going to be some soothsayer predicting the stocks are going to go down, or the next big coin is going down, or whatever.
Since Trump's presidency, the stock has been rising steadily, and just like crypto there was a spike in December. If you were to take that spike off, the stock market is still growing at a healthy rate. I say the same as always: if you just look at the market graphs from a bigger point of view, everything's going to be ok. The media loves to create drama, becuase it's their job. Don't be too amazed when the stock goes up and they're reporting it like they knew it was coming.