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What is going on with the S & P ????


Janey12
Posts: 15
Topic starter
(@janey12)
Active Member
Joined: 11 months ago

Hi this week has been really bad for the S & P....any thoughts if this is going to continue on a downward slope or this is just temporary jitters?

6 Replies
earlyretirementnow.com
Posts: 250
(@earlyretirementnowcom)
Member
Joined: 6 years ago

Good question.

Tech "bubble" is deflating a bit.

And let's not forget the spike in interest rates. People said that there's nothing to worry about with the high CAPE ratio because interest rates are so low. Well, now interest rates normalize a bit, and the S&P falls. As expected.

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NavyPack
Posts: 161
(@navypack)
Estimable Member
Joined: 1 year ago

Up too much for too long, and need some pull backs for overall health.  On plus side, pull backs raise VIX and allow more safety margin on PUT sales.

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2 Replies
earlyretirementnow.com
(@earlyretirementnowcom)
Joined: 6 years ago

Member
Posts: 250

@navypack My thinking too. As long as the pullback is orderly, maybe 1-2% max per day, this is a goldmine for us put sellers! 😀

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NavyPack
(@navypack)
Joined: 1 year ago

Estimable Member
Posts: 161
Janey12
Posts: 15
Topic starter
(@janey12)
Active Member
Joined: 11 months ago

I am wondering if it will continue to drop and for how long or just hover around 3800?

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1 Reply
earlyretirementnow.com
(@earlyretirementnowcom)
Joined: 6 years ago

Member
Posts: 250

@janey12 Wouldn't be surprised if we go below 3500 eventually. If bond rates go back to normal & earnings estimates are still below the pre-pandemic levels I don't see why the S&P should be much above 3500

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