≈Stocks could fall because of …≈
Not a day goes by without some market strategist or talking head opining on the risk of a downturn for stocks. “Something wicked this way comes,” they cry. I started trading in 2006 and have heard such doomsaying since day one. The potential causes are wide and varied but inevitably get recycled. Here’s one such example from Bloomberg last month, “Minerd Says U.S. Stocks Could Plunge 15% in ‘Very Rough’ Autumn.”
Sounds ominous, no?
This sort of forecast might seem bold if you lack a basic knowledge of market history. But you’ll soon learn it’s both an incredibly safe and obvious prediction to make, like betting on warmer weather into the Spring.
To wit: Over the past 40 years, the average intra-year decline is 14.3%, according to J.P. Morgan Asset Management. Yet despite these seemingly scary corrections, stocks have increased in three out of every four years. What’s more, the average annual gains come out to approximately 10%.
Of course stocks could drop 15%! It’s what they do on average every single year.
Chart of the Day
Zoom Video Communications (ZM)
Video of the Day
In this week’s edition of the Queens Court, the coaches bring separate trading picks for Coach Emily to review including Salesforce, FUBO, and Barrick Gold. Will she accept the trade ideas or will she lop off the coaches heads?
Today’s line up
Traders Lounge 11 AM EST
Join the coaches in this live lounge, ask questions, discuss ideas or just sit back and listen to veteran traders discuss market conditions.
Halftime Report 12:30 PM EST
The Halftime Report starts at 12:30 EST and covers what news is driving the market, chart analysis from the movers and shakers of the day and fun in a way that only Matt and Tim can deliver.
Trade Masters 7 PM EST
Join us every Wednesday at 7 PM EST on YouTube as the Coaches go over trade ideas from the Trade Master’s crew!
Financial freedom is a journey
Sign up now and gain unfettered access to all of the quality content and powerful Scouting Reports that our Pro Members enjoy for 15-days absolutely free with no strings attached and let us show you what your trading has been missing.
Tackle Trading LLC (“Tackle Trading”) is providing this website and any related materials, including newsletters, blog posts, videos, social media postings and any other communications (collectively, the “Materials”) on an “as-is” basis. This means that although Tackle Trading strives to make the information accurate, thorough and current, neither Tackle Trading nor the author(s) of the Materials or the moderators guarantee or warrant the Materials or accept liability for any damage, loss or expense arising from the use of the Materials, whether based in tort, contract, or otherwise. Tackle Trading is providing the Materials for educational purposes only. We are not providing legal, accounting, or financial advisory services, and this is not a solicitation or recommendation to buy or sell any stocks, options, or other financial instruments or investments. Examples that address specific assets, stocks, options or other financial instrument transactions are for illustrative purposes only and are not intended to represent specific trades or transactions that we have conducted. In fact, for the purpose of illustration, we may use examples that are different from or contrary to transactions we have conducted or positions we hold. Furthermore, this website and any information or training herein are not intended as a solicitation for any future relationship, business or otherwise, between the users and the moderators. No express or implied warranties are being made with respect to these services and products. By using the Materials, each user agrees to indemnify and hold Tackle Trading harmless from all losses, expenses and costs, including reasonable attorneys’ fees, arising out of or resulting from user’s use of the Materials. In no event shall Tackle Trading or the author(s) or moderators be liable for any direct, special, consequential or incidental damages arising out of or related to the Materials. If this limitation on damages is not enforceable in some states, the total amount of Tackle Trading’s liability to the user or others shall not exceed the amount paid by the user for such Materials.
All investing and trading in the securities market involves a high degree of risk. Any decisions to place trades in the financial markets, including trading in stocks, options or other financial instruments, is a personal decision that should only be made after conducting thorough independent research, including a personal risk and financial assessment, and prior consultation with the user’s investment, legal, tax and accounting advisers, to determine whether such trading or investment is appropriate for that user.