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| Or will the capital crunch mean a more steady eddy approach? Capital was widely available the last couple years in part because stock wins were being leveraged into more capital. Stocks down 30% could easily mean capital is down 50% for some of these capital companies. Similarly, the valuations of these companies probably doesn't look near as good as it has in the past.
One "Main Street Index" I use is people wanting in the market. When the DOW hit 25k, a lot of people were already licking their chops. At 21k, some people who were sitting on some cash were getting in. New money is needed, the FED is the only new money here. Maybe that's enough. But I don't hear/see near the people talking about buying mutual funds now like 3 weeks ago. The same in the corn market. I may wait for a better price, but that doesn't mean I'm looking to buy. China already bought a slew of corn and wheat, I wouldn't be surprised to see them be gone for a few weeks. I'm still neutral and don't expect any big run on ag commodities yet. | |
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What happens when FOMO kicks in?
