Is it priced in yet? I'm not sure what was getting priced in, but it must have been a real daisy. People here are always telling me it's priced in. Interest rates? Priced in. China? Priced in. Inflation, deflation, corellation, growth, emerging markets? Priced in, priced in, priced in, priced... in. Bonds are priced in too. Don't forget that.
So I am just wondering what got priced in? Was it the possible .35 percent intrest rate increase getting priced in again? Did people suddenly go, "hey wait, China is a mess?" again? Concerns of deflation again? Only been hearing about that since QE started. First time we are going to raise rates in forever, could be as big as .50% or as small as .25% If they even do it... again, this time for sure, cause they really mean it this time. Emerging markets are not doing well, oil is being depressed by OPEC. Holy cow when did this all happen? Well been going on for years, but don't worry, priced in. Was it not priced in the day before? Nothing really changed, but heck lets just double down on the selling.
You can't price in panic and fear. We need a correction, we need a correction. Don't worry we always find a way to give ourselves one. We may even have a bear market, but at least we are done with limbo, stagnation sucks. Embrace the pain, it isn't over yet. Someone will call a bottom and people will be like hey that's sounds pretty good, lets start buying.
Just took a 63,497.51 hit, that's not a bad a car, that like a loaded S6, I want an R8 though.
Tell you one thing, my bonds, soooo much better at negative correlation than anything international. That seems like good diversification to me. US just dropped a fiver after everyone else closed. Monday should be fun. Should be intresting to see going forward if Captain Jack was right, so far US stock and bond allocation is doing it's job. Even International bonds are holding a negative correlation to equities. Now we got plenty of time to see what international equities do. Feel free to price in the last 10 years. 20 years, whatever. But from the suggestion of increase to 40% international equities, lets see how we do. Nothing may work but we will find out if this high correlation but currency based diversification helps. So far not really helping. Bonds are helping again, international equities not so much, in fact a big part of the problem.