Tolerance.
I’m seeing more and more comments about “capitulation, liquidation, blood in the streets, etc”.
Right now, 8:50 am CDT, the SP500, Naz, SOXX, DJIA are all down again. The VIX is up.
The stocks in my port are also down again, but I prefer to look at the indices in times like this.
So far, the ERs for my companies have been “solid” to “blow out”. So, my companies’ theses are intact.
It is the macro environment that’s driving investor emotions and selling… cause so many folks experience the pain due to price anchoring.
And, they don’t know their own personal risk tolerance.
This is an opportunity to better understand one’s own, personal, risk tolerance.
The fact that the indices are down, especially more than 3% each day, especially several consecutive days, reveals lots of investors across ALL stocks/companies are finding that their risk tolerance is not what they thought it was… and are selling.
This is a good indicator of capitulation.
Is it the final capitulation?
Maybe not? Right now, 09:30am, the indices that were down, have bounced back to neutral. The VIX has dropped.
There are still lots of buyers?
Or are these the algos and bots?
ralph