points by georgeecollins 3 days ago | 0 comments
Thinking a 5% drop in one day is a big deal is recency bias. Other people have pointed out that statistically it is not that rare. We just have been living through an amazing run for equities.
I am not saying I know it will be fine or I know it will be terrible. I am saying I have lived through many 5%+ drops and they happen on the way up and down.
[–] chollida1 2 days ago
[–] georgeecollins 14 hours ago
If your time horizon is 5 years, that’s not really investing.
[–] dcrazy 2 days ago
I think the argument is that we have been in a massive everything bubble since summer of 2020, so you have to look back farther to truly understand the rarity of a 4% drop.
[–] excorxism 2 days ago
The index isn't even the story.
Chips/Memory/data center everything AI has got absolutely destroyed this month.
Look at LITE, FLEX, FIX, TER, WDC, the Kospi.
In the past 5 years the S&P 500 has dropped 5% 1 time. the Nasdaq has done it 3 times.
You are ofcourse welcome to your own definition of a big deal but to me something that happens that rarely is a big deal.
At worst you'd have to agree that hte language is defensible:)