It is TRUE, there has been a major stock selloff. What no one is saying it that this downturn is just shareholders taking gains from stock they purchased at lower prices.
Likewise, any crypto downturn is almost always directly tied to the stock market. So HODL, buy the dip if you can, and carry on.
I find it pretty laughable when I see the political candidates and pundits blaming a specific party or president for this downturn.
For instance, Trump has been vocal, blaming Vice President Kamala Harris for the stock market crash and dubbing it the “KAMALA CRASH”.
Take Gains before you loose them
When it comes to stock market behavior, investors often make decisions based on various factors, including the desire to lock in profits. Here are a few reasons why stock market participants might choose to take gains..
- Profit-Taking: After a period of strong market performance, investors may decide to sell some of their holdings to realize gains. This can be driven by the fear that the market might reverse course or by the need to rebalance their portfolios.
- Risk Management: Investors assess their risk exposure and adjust their positions accordingly. Taking profits can be a way to reduce risk, especially if they believe the market is becoming overvalued.
- Market Sentiment: Sentiment plays a significant role. If investors perceive negative news or anticipate a downturn, they may sell to protect their gains.
- Technical Analysis: Traders who follow technical indicators might sell when certain price levels or patterns are reached. This can trigger profit-taking.
Remember that individual decisions vary, and market behavior is influenced by a complex interplay of factors.
It is not a crash, it is not a sign of a filed economy, it is capitalism at work. We invest to make money, so when we see a ripple, we pull; end of story.
What are we watching over here? Crypto : XLM, XRP, and SOL Stocks: NVDA, AMD, AAPL, AMZN
Bucky has been into AI, online marketing, and website performance since its creation in 2020. Based in Los Angeles with their cat, Bucky finds joy in the idea of nature, being outdoors, and engaging with friends.