If you looked at your portfolio today, chances are you had a mild (or severe) heart attack, followed by… a sigh of relief?? 🤔 Today’s mid-day selloff was saved by bold dip-buyers who pushed stocks back into the green. Yeah, WTF.
The S&P 500 plunged as much as 4% intraday, down 10% from its recent high. The S&P 500 approached (gulp) the dreaded correction territory, then closed +0.28% at the end of the day — retail, energy, and industrials successfully reached green territory. 🍀 The Nasdaq plummeted about 4% during the day, earning +0.6% at close and the Dow scrambled +0.29% . What just happened.
So how did some notable stocks perform? Memestocks fell as $AMC lost 7.4% and $GME dumped 5.8%. 10-year U.S. Treasury yields dipped to 1.735% as nervous investors sought less-volatile bonds. Netflix lost 2.6%, Tesla tripped 1.5%, and Pfizer slid 2.37%.
According to some analysts, 2022 is looking more like the year of correction and less like the year of the dip. Michael Mullaney, an analyst at Boston Partners, commented on today’s mayhem: “The buy-the-dip mentality has left the market at this juncture. If you’ve tried to buy this dip, you’ve gotten toasted.”
Another market strategist, Victoria Fernandez of Crossmark Global Investments, shared “Look at this oversold condition that we’re in, and the longer-term upward trend that the market is still in, and combine that with the fact that credit spreads are so well behaved right now. There’s still some support for the equity markets, there’s just going to be quite a bit of volatility.”
Meanwhile, investors are anxiously awaiting news about the Fed’s plans to battle inflation during the Federal Reserve meeting scheduled this week. Tensions between Ukraine and Russia also fueled panic in the markets. But at the end of the day, only time will tell where we go from here — and may the odds be ever in your favor. 🎲 🙏 😳