Well last week ended on a really sour note.
The Dow dropped almost 1000 points and the S&P 500 stock-index moved below 4400.
The daily session was the worst in 18 months and the markets have been down nine out of the 11 weeks.
There doesn’t look like any relief is on the horizon.
Analysts attribute the drop last week to the realization that interest rates will climb higher and faster than many had predicted.
If that wasn’t enough, we still have Ukraine and China continues to close sections of the country to fight COVID.
That pushes the theory about stagflation, which is a slowing economy while still experiencing inflation.
This week, we will get earnings reports from the biggest tech companies, like Google and Apple.
I can’t believe that these will be anything but better than expected.
I am not sure that even good earnings can keep this market recovering from the recent pressure.
It is interesting that Bitcoin has moved back below 40,000.
It appears that stocks are the cleanest of all of the dirty shirts you have to choose from.
Not saying stocks are immune from problems, but the other choices are not a great alternative.
That leaves me worrying that we may well get that 20%-plus pullback from the highs earlier this year.
That is not such a great leap, as I thought we would get this correction last year.
I suppose if you keep saying something it sooner or later will happen.
It does appear that Elon Musk will end up buying Twitter this week.
The board of directors met with Musk and his financing appears solid and I seriously doubt there are any other suitors.
You just have to admire someone with such vision and the ability to get things done.
I also believe that he gets free enterprise and creates things that improve the quality of life for people.
You can go down the list from EV cars, worldwide satellite WIFI, reusable rockets for space travel and now ensuring free speech through Twitter.
We do have to keep our eyes on the road as we see the impact of the war in Ukraine on the European economy.
There is no getting past the fact that Europe depends on Russian energy.
China’s economy is slowing as it fights the COVID spread.
As much as they steal from the U.S., you would think that they might have taken the research from John Hopkins indicating that such quarantine measures to great extent didn’t stop the virus.
Much like the U.S., if China sneezes the rest of the world is going to get sick quickly.
I can only say that a correction would allow value to come back into the market.
I doubt seriously that will make anyone happy when they get their monthly statement for their retirement account and it has dropped in value.
I will say though that if you are uncomfortable now, the next several months really may give you pause.
It is at these times when the world looks like it is crumbling that it becomes very difficult to put your cash to work.
You have yet to hear the real Chicken Littles of the world begin to tell you the end is near.
