There was a LOT of money sitting on cash when 2023 started, and many were caught unawares…and even now, I am supposing there is still quite a lot of money on the sidelines…
Lets say Dreamer is right…and the market falls…what do you think will happen to all the money that is still sitting on the cash…For example, lets say AAPL falls by 20%…I don’t bet but if I do, I would think there will be tons of institutional investors/ hedge funds who missed out on the initial rally who will jump in.
So that brings me to the actual question I had…
Dreamer, you had posted some graphs extrapolating data from the 2000-2001 or may be it was 2008-2009 crash and compared it to the current one
However, is there a way to know how much money was sitting on the sidelines and cash at those times? and compare it to the current times…perhaps that might reveal an interesting point to ponder.
TLDR: It is possible that the market will fall at some time, but unless it is a black swan event, my guess would be that the big money will create a mini panic, try their best to make others sell, and then load up…
If a black swan event occurs, well, we all will have bigger things to worry about
Or the recession or inflation can cause real pain, and make the current rally the biggest bear market rally ever.
My money is on the first option - At “some” period from now till end of next year, we have a market drop, but in 2025, the market will be higher from even where we are now!
No idea how the individual stocks will do in the meanwhile…I guess the good ones will do just fine, while the zombie stocks will go down a lot.