Is it just a “minor” correction and what does that even mean? The market closed around 6% down from what it was just 5 days ago, and 8% down from a few weeks ago. Volatility was incredibly high yesterday, even higher than the last big peak, which was at the start of the pandemic. There has been low predictability in how the fed will act and lots of debate about whether they are too late on acting. This has nothing to do with Japan, and everything to do with the US jobs report, which is literally what triggered the sell off. I am not sure why this blog post is trying to create a link to Japan.
Let’s also not forget, that the economy’s growth depends significantly on a few mega corps, which is not healthy. And those companies are likely overvalued. Berkshire Hathaway dumped Apple shares, Amazon lowered its guidance, and Nvidia - and AI as a whole - is now clearly known to be overhyped. If you remove these companies, what do you have? A stagnant economy with inflation that isn’t under control, reduced employment, and ballooning public debt. Clearly this isn’t a good situation, but America is lucky to have a strong currency and low exposure to global unrest.
I think your latter point that half the population wants the economy to crash for political gain is potentially true but it is equally true that the other half wants to pretend the country is doing well in every single way so Harris will have another talking point. So I am not sure why it is relevant.
Let’s also not forget, that the economy’s growth depends significantly on a few mega corps, which is not healthy. And those companies are likely overvalued. Berkshire Hathaway dumped Apple shares, Amazon lowered its guidance, and Nvidia - and AI as a whole - is now clearly known to be overhyped. If you remove these companies, what do you have? A stagnant economy with inflation that isn’t under control, reduced employment, and ballooning public debt. Clearly this isn’t a good situation, but America is lucky to have a strong currency and low exposure to global unrest.
I think your latter point that half the population wants the economy to crash for political gain is potentially true but it is equally true that the other half wants to pretend the country is doing well in every single way so Harris will have another talking point. So I am not sure why it is relevant.