A nasty slide for U.S. stocks into Friday’s close
A number of history’s most notorious crashes occurred on a Monday reopening after a bad Friday, so it’s understandable this provoked concern
It’s possible that the market has over-reacted. After both the Fed and the market were too relaxed for too long, the course of rates now embedded in prices suggests the kind of tightening that’s almost bound to bring about a recession. Will the Fed really be able to go through with it?
Governor Ingves of Sweden – an outspoken dove until a few weeks ago — threw “low for long” out of the window.
Netflix Inc., down a third after not particularly disappointing results, demonstrates what could lie in wait.
Investors are uncomfortably aware that equity valuations have for years been predicated on historically low interest rates. If rates really are rising, that assumption is no longer any good, and — as Netflix discovered — there’s a long way to fall for companies that look optimistically priced.
John Authers Bloomberg 25 April 2022
Dow Tumbles Nearly 1,000 Points
WSJ 22 April 2022
https://englundmacro.blogspot.com/2022/04/dow-tumbles-nearly-1000-points.html
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