Here are some numbers to take into account:
TWTR down 1.61 (5.83%) to a below-IPO 26
NFLX down 9.57 (7.84%)
ANFI down 1.77 (38.06%)
MCUR down 9.07 (75.27%)
S&P 500 down 43.88 (2.11%)
DJI down 358.04 (2.06%)
TSLA down 13.07 (5.12%)
TWC down 3.86 (2.02%)
It seems as if many investors today collectively realized that most stocks are overvalued and have been inflated to the point where they are no longer sustainable. Although a large portion of the market suffered noticeably large losses, what we just witnessed was not a full-fledged crash, but is a hinting to what is awaiting us in the future. For the first time in a while, the world got to observe what consequences come as the result of an unjustified bull-run that has brought the majority of stocks to record highs and gave tiny burger chains billion dollar valuations. However, things could have been much worse. Sadly, a day is going to come when things do get much worse. And by the looks of it, this infamous “doomsday” that has been fantasized about so much by conspiracy theorists is not very far away. At this moment, the entire stock market (and the entire world, for that matter) is teetering on the brink of an unavoidable cliff, supported only by those who believe that stocks are going to continue to grow and meet Wall Street’s ridiculous expectations.
What this signifies:
One day, things are going to catch up with us and we will all have to face reality. My prediction is that, like always, stocks are going to make one final hail-mary leap before crashing to the ground. Just be alert for sudden, unexplained price increases.