The COVID crash was the perfect example of this. If you were here during 2020, there were people on this sub literally taking loans out to buy puts absolutely certain that SPY will hit sub 150. Instead, the “downtrend” lasted no more than 3 and a half weeks despite a global pandemic killing millions. Most panic sold at or near the literal bottom. SPY is now above 500.
When everyone expects a recession, it doesn’t happen. It’s quite literally as simple as that. Not a lot of people expected a recession in ‘08. We now live in a digital age where each and every little drop creates panicked people thinking “this is it, it’s going to 0” which is exactly why no recession has occurred during the age of social media.
The reason is simple: panic creates bottoms and social media has exacerbated panic to the point that every time there’s panic, you’re better off just buying SPY or stocks that have been creating the most panic recently, such as NVDA.
If you’re not buying the fear, are you instead going to buy when everyone else is jubilant near the highs?
Panic creates bottoms and most people here will panic sell near the bottom
byu/cakebbc inwallstreetbets
Posted by cakebbc
45 Comments
Still going to dollar loan center and selling my kidney for puts.
This guy is right – gonna go talk my nana into cashing out her 401K and buy Intel calls with it
My grandma is still alive
Take 2008. It was prolonged down period. Or 2000. Waiting on the sidelines for 3-6 months
Nvda is still over 100% up YTD….
This post is the most non-wsb post I have ever seen. If you want logic, post somewhere else, if you want to post people burning money, any portfolio in red, and people jumping out of buildings or off bridges, post here.
So this time it’s different because *checks notes* uh… social media?
*exacerbated
I <3 panic selling
Is there a real reason other than FUD to expect an economic cataclysm?
The worst thing so see is inflation. It is serious. But otherwise the economy is firing on all cylinders. Unemployment is ok, energy prices are not adding to inflation.
US production seems to be ramping up with obvious growing pains.
The AI market seems to be undergoing a well disertes correction.
Anything else I’m missing?
What is it?
there is a “threat of war” in Israel? Priced in about 2000 years and some change.
Politics? Certain stocks tell me there is low confidence on major changes over that front.
I’m waiting for a buy opportunity. The time to sell was Thursday.
There where no hundreds of millions killed.. jesus
“hundreds of millions” … ROFL
You have no idea what you’re talking about. This is not the bottom. It hasn’t even fallen 10%
Already setup stop losses , see you on the other side
[deleted]
I’m currently over 90% in cash in a money market account making 5% interest. Quick how do I panic sell cash.
This is awesome – for those that enjoy walking in torrential downpours…this is what separates the men from the boys.
https://preview.redd.it/mv4zgv7pqtgd1.jpeg?width=885&format=pjpg&auto=webp&s=5ace9a62505f865345a3c08e86d63b537e4e338b
How about panic buying
Mercury Rx
My favorite part of this is the “when everyone expects a recession it doesn’t happen” like this sub hasn’t been screeching that stocks only go up and that rate cuts mean everything will go up even higher like it didn’t just run 20% in less than a fucking year. And that’s despite clear as fuck data pointing to the idea that no, things are not fine.
So welcome to the recession everyone. Shit is here and it literally is just starting. Wait until the actual pain starts. This isn’t a Covid recession where no one is allowed to fail. This is a going to be a culling of shitty businesses and employees that work for shitty businesses. And with the amount of dollars that were injected into the system there are a LOT of shitty businesses and people working jobs that really shouldn’t exist anyway. It’s going to be rough.
Imagine trying to catch the knife here, we’re going lower literally for the reasons you said.
It’s not panic. It’s getting squeezed.
Banks are levered out the ass with derivatives.
Remember when this happened in 2008 and Obama promised to regulate the Big Bang but then they bailed them out and economy did fine so everyone forgot about it for the next 3 presidential terms too?
Good times.
TBF, everyone was screaming recession in 2022, not this year, when everyone on this sub has been buying NVDA etc heavy.
yes, yes you should buy now. Let me know which hospital you go to for falling knife injuries.
Panic creates bottoms, confidence creates dommes
fk me sideways with a cactus
!remind me in 3 months
It’s going to hit 500-515.
GOING DOWN !!!
The Ship Is Going Down !
Some people say I am a power bottom, but I still like to get them FDs
panic bottom jeans, puts goin’ burrr
The market started pricing in a recession 4 days ago. LOL We’ve been in a recession for months now
Can’t sell the bottom if you’re sleeping.
Yup. The Wall Street Crash of 1929 was a month.
I’ve sometimes bought crashed stocks by following a rule of: 1) wait at least 3 days 2) wait until it has 2 simultaneous days of the price rising. It still might fall a little more, but you’ve bought about as close to the bottom of market as you can.
People absolutely expected a recession in 08. Bubble talk was everywhere we just didn’t realize how bad or how long it would last. Nobody could even think of buying the sp500 because everyone was losing their jobs and just trying to survive. When everyone thinks this can’t possibly get shittier, that’s the bottom – and we’re far from that.
Nanny I know you watching me. Give me sign that its time to all in.
Sitting on a pile of cash after exiting all positions last month; feelsgoodman.gif
I’m selling to contribute to the panic selling so we get to the bottom faster 🫱🏻🫲🏼
Does it create power bottoms too?
Just cause spys above 500 doesn’t mean it should be dandy. 😂😂
Fun fact: there is no bottom.
Do you really think nvidia deserves 3t market cap? Microsoft? Intel deserves 90billion? Lol.
Ya’ll wouldn’t be panicking so much if your portfolio was diverse and you intended on holding until you retire. You don’t lose anything until you sell. Stop options trading, you’re a gambling addict.