More than $7 trillion has been wiped out from the stock market this year
The rapid decline is ringing alarm bells on Main Street as well, with fears that the US economy may lose steam after a strong recovery from the depths of the short recession caused by the pandemic.
According to data from research firm Bespoke Investment Group, the Nasdaq has fallen more than 20% in the past 30 trading days. A decline of this magnitude has occurred only 11 times before…and nine of those declines were “recession-related,” according to Bespoke.
Analysts detailed in another report earlier this week said the Nasdaq 100, or QQQs, are on track for their worst start to any year ever.
However, there are still hopes for a bottom near the horizon. Bespoke analysts said that “prices can remain oversold… for an extended period of time, but they don’t stay that way forever.”
Investors are waiting for the so-called capitulation, the moment when everyone seems to have finally thrown in the proverbial towel. When sentiment appears to be at its lowest, it might be a good time to start buying again.