Taking losses is never an easy thing for a company or investor to do. While it will happen at least here and there, any investor worth their salt takes as many precautions to avoid it as possible. This means diversification of investments and being hands-on with your money. As much as people love the idea of setting it and forgetting it, anyone who invests knows you need to watch your money like a hawk if you are doing it yourself, or you are new to it.
The tech-heavy Nasdaq continued its fifth straight weekly loss and is at its lowest point since 2020. This also marked their longest losing streak since the fourth quarter of 2012. Nasdaq was in good company though, as the S&P 500 also marked its fifth straight week going down This marks its longest losing streak since the second quarter of 2011.
Given the relationship between the markets, investors, and long-term interest rates at the current moment, it makes sense that people are nervous about making the wrong moves. These long-term interest rates play a massive factor in the future of not only our stock markets but also in the price of our everyday goods and services. A company losing their investments in other companies means they need to make up for that last revue, and it must come from somewhere.
Ryan Detrick, chief market strategist for LPL Financial has been paying strict attention to the way the market has been behaving as of late. “Oil is up again, continuing the inflationary worries that we are seeing and energy is bucking the trend of a very weak market. But the higher natural gas and crude oil prices have been tailwinds for the energy sector this year.” This reflects a stable but easily manipulated marketplace. With Russia all but out of the oil market for the conceivable future, this leaves a lot of room for improvement and for people to better understand where these resources come from and to learn how the economy works.
One of the biggest factors at play here is also the ignorance of the American people about our economy. We don’t quite recognize the situation we are in, or how each of our politicians has had a role in it. This is intentional and by keeping things overly complex at all levels, most people won’t put the work in to learn the truth. Those who do are often rewarded with horrible judgment and bad mannerisms by those who don’t understand the topic.
Then again, hatred for something we don’t understand is not uncommon. It’s too bad the people who are making our financial decisions in DC don’t know the common American and are instead afraid of us and what we might do in their position. They don’t want to see the common American wealthy without a care in the world. This means that there is less going into their already stuffed pockets. These people see us as the people to fear.
They are the Nancy Pelosi’s of Wall Street and making all their money off insider trading. So, if the American people know more than they do, they will do whatever they can to jump them and get paid better. This kind of strategy is not uncommon for investors, and as they lose money due to the uninformed panicking, it is only making them warier about the future and what might happen. As such their decision to manipulate the market will only grow stronger.