I’ve seen this discussed on other investment forums and have been unable to find an answer.
Obviously in any bear market, it’s common to see face-ripping rallies upwards, it’s one of the famous characteristics of a bear market.
However, there seems to be a certain… feverish greed, or desperation (?) to the ‘fear-of-missing-out’ rallies we see.
I don’t remember seeing it in past bear markets I’ve followed.
A single tweet by a WSJ journalist triggers 4-5% moves upwards, a couple of months ago.
Yesterday, the CPI data being slightly low triggered the Nasdaq rising 5% in just 1 hour during premarket. Yet the PPI data being slightly high on Friday did not trigger symmetric behaviour.
Any newspaper talk of ‘pivot’ causes relentless Pavlovian rallies in response. And there has been endless talk - of China pivoting on covid, of the Fed pivoting on rates.
The other forums I spend time in have a much younger group of investors, and it seems almost all of them are using highly geared approaches, ‘0 day to expiry’ options on very volatile shares, or copious amounts of margin and triply-leveraged ETFs.
Get rich or die trying, etc. There seems to be addiction to watching every movement in the market in the way you normally see at the peak of a bull market. The overall feeling (to me) is generally very much like the peak of a bull market. Compulsive gambling, a sense of ‘certainty’ that their bets will win. Ten times more fear of missing out on the ‘big rally’ than fear of being caught in the next big drop. Zero interest in value metrics.
What is everyone else seeing among people they know, in relation to the market?