When the DOW broke 26,000 I was telling my dad that a crash was imminent and he was like "NO WAY! Trump just signed all these tax breaks for companies..."
I explained to him that the tax breaks were necessary simply to keep some of these companies afloat since their business expenses have all rises over the past few years. I warned of a massive drop in the market and we haven't even seen a proper "crash" yet (20% or more drop).
Flash forward 6 weeks and here we are. There was a little correction but the REAL drop will happen later.
What would help is if we see the Russell 2000, which represents small businesses start to break down. It tends to lead the Markets up from a bottom and down from a top.
You both sound very interesting :) Im not really into "real" (physical) markets. One would expect companies are doing very well, based upon how much CEOs rack in in bonuses.
The
part is a bit confusing to me. How will that possibly prevent a sell-off? Is it due to less people investing and fear-selling once it goes down a bit?
In how much time would you expect the real drop to take place?
When the sentiment is bearish, a drop usually does not happen. The market goes in the direction where most people loose. That is usally when a big short squeeze happens.
The "real" drop may take months to years still. I don't think we are in the euphoria stage yet. This is likely a normal correction.