While most of our eyes are on the cryptocurrency bull market and alt season we're in, the world stock markets also continue to see new ATHs on a daily basis. Before Easter, the S&P500 hit 4000 points for the first time ever. Today on the first trading day following the holiday, the bulls continue roaring.
So let's have a look at the current status, as well as some of the reasons why the markets are having a blast these days.
At the time of writing, all three key indexes are up more than 1%:
- The S&P 500 index, consisting of the 500 largest companies listed in the US, rises 1.48 percent to a new record of 4079 (having just passed 4000 for the first time last week).
- The technology-dominated Nasdaq index is up 1.68 percent. Being so far the biggest winner today.
- While the more traditional industries oriented Dow Jones is currently up 1.14 percent, taking it up over 400 points to a record high of 33,531 points.
Over 900,000 new jobs in the US
With March having come to a close, it was again time to release what's often referred to as "the most important number of the month", namely the number of new jobs created in the US outside agriculture.
The figure, which came in just before the weekend (although the stock market was closed and thus not yet factoring these in) showed that 916,000 jobs were created outside agriculture in the US in March. This was both far more than in February, as well as much more than analysts had predicted.
With more of the country starting to re-open following the pandemic, it can of course be difficult to predict the rate at which the country will resume normal.
Tesla crushing its expectations
Arguably the hottest stock of the century, Tesla, also saw a significant climb of about 6 percent, following its quarterly release of new cars produced. As reported by CNBC, Tesla delivered 184,800 vehicles in the first quarter of 2021 which was 4000 more than Q4 of 2020, and much more than the 168.000 predicted by analysts.
Time for a correction?
Whenever record gains are made, and the markets continue to soar 1-2 percent daily, it is always worth wondering if it's time for a correction. However, these are not normal times. Many of the largest companies have benefited greatly from generous packages from politicians, while being able to cut costs on labor and travel expenses. So it's hard to compare the figures we see today, with those we saw two years ago.
So what do you think? Are you currently buying more stocks and long-term index or equity funds? Or are you selling?
Let me know in the comments!
Fredrik
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Well, without being pessimistic, everything that goes up must come down, and the worsening of the pandemic around the world will have serious consequences on the traditional economy.
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A correction does seem likely at some point. But it's not true that what goes up must come down if you keep on applying an upwards force to the object. In the case of stocks, fiscal policies keep on adding that force. So in terms of fiat value, there doesn't seem to be much coming down anytime soon. The question is how it compares to the value of real estate and Bitcoin though.
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Yeah, you're right.
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Is it just me or do you simply not get excited when you hear the stock market went up 1%-3% in a day lol Crypto has spoiled us a bit. I still buy stocks but they are super passive and dividend earners in strong companies. Besides they I kind of don't bother much time with it.
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It still is exciting to me. Yesterday, my two biggest stocks were up 6% each, and my equity and index funds were up 2,5%.
I guess it's because I've tricked my mind into thinking that my crypto holdings are just video game money. Which I've done to rid myself of the addiction of checking the prices all the time ad instead just let it grow and only consider it profits when I actually sell. Thus my gains in stocks actually feel like "real" gains.
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I like that mentality I may need to give it a try and get me investing a bit into the stock market again.
My best friend sold today and she's very happy. I am thinking of buy new stocks and invest in natural resources, but the monopoly of the, let's say, Water stocks on the market is disgusting!
Great article, upvoted and reblogged.
Bravo!
@regenerette
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It is hard to argue against taking some profits when ATHs are broken week after week. For myself, I consider myself so young that almost no matter what happens, continuing to pile onto my index funds is almost certainly to work well in the long run. That said, it is tempting to see if I could make a good move by buying back in lower. Decisions, decisions...
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Let us know how it goes...if there's anything dripping while buying back, and what wallet do you use, I am curious.
I keep searching for alternative crypto cards that don't charge besides playing around with some crypto on their platform.
When I eventually take profits then it's usually through Kraken using SEPA transfers to my bank account.
I still consider my Hive Wallet as my number one crypto wallet.
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Thank you for your answer, I will save it. It offers me some steps I will also need to do at some point.
With appreciation,
@regenerette