Pfft, 500 points is like 1.2%.
The reasoning here is that the Fed just gave out numbers, and the economy was weaker than people thought. This isn’t a panic, just a slight correction. The Fed is planning to cut rates in September, which will probably have the opposite impact as today’s news.
People have been crying recession, and the data just doesn’t support it. We’ve had a phenomenal year in the market this year, this is just tempering that a little bit.
This has nothing to do with Personal Finance IMO.
the economy was weaker than people thought
The economy was weaker than corporate media was portraying it. Who are you going to believe, CNBC or your lying eyes?
Dunno. The last 2 weeks posts on c/personalfinance are just return2ozma doomscrying an imminent recession. As near as I can remember, there’s been people warning of imminent recession every day for the past 30 years. Occasionally, they’re right.
Online opinion is biased towards perpetual doomsday because the average person wants the markets to crash so they can buy cheap stocks.
No, the average person panic sells when there’s a correction, and they miss the upswing. So many people lose their retirement savings because they try to time the market.
I would personally like a significant market correction because I think I’m a pretty disciplined investor, but I highly doubt the average person thinks that way.
Also, a market crash doesn’t just mean stock prices fall, it also means more layoffs, increasing prices (as companies try to maintain profits), and the risk of cascading failure (e.g. foreclosures and defaults adding stress to the banking system). My job is pretty secure, but that’s not true for a lot of people. So no, I don’t think the average person wants a crash.
