Originally posted by: NaughtyGeek
Originally posted by: Engineer
50% of the 700 stocks that have been on the exchange since 1973 are now at a 10 year low. A very broad selloff. (Source: CNBC).
This makes me wonder what these folks know that we don't. I would guess a large portion of these stocks are "blue chip" stocks which I've always been told was the place to migrate your investments to when things get rocky. Am I mistaken?
They know that inflation is rising and because it's commodity driven, it's going to be difficult for the central banks to combat it with interest rate hikes, given that the economy is already on the brink of a recession (stagflation).
They know the earnings are dropping.
They know that real wages are dropping, especially once you pull the top 1% of income earners out of the picture (as they bring up the average terribly but it's still negative).
They see the financial mess that the banks are in.
The see multi decade lows on consumer confidence.
They see oil and other commodities are record highs and tensions in the middle east (as well as a weak dollar) will keep them that way or higher.
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