The rapid plunge is also sounding alarm bells on Main Street, with concerns that the US economy may lose vitality following a strong recovery from the depths of a brief pandemic-induced recession.
The Nasdaq has plunged more than 20% in the past 30 trading days, according to data from research firm Bespoke Investment Group. According to Bespoke, the decline in magnitude has only occurred 11 times before, with nine of those “recession-related”.
Bespoke analysts said in another report earlier this week that the Nasdaq 100, or so-called QQQ, had its worst start ever.
Still, there is hope that the bottom can be seen soon. Tailored analysts said, “Price can remain oversold for a long period of time, but not forever.”
Investors are waiting for the so-called capitulation, as everyone finally seems to have thrown a towel in the proverbial. When emotions seem to be at their lowest, you can finally start buying again.