• 3 hours China Slaps Alibaba With Record $2.75B Antitrust Fine
  • 1 day The Pandemic Has Culled The Middle Class
  • 2 days Legacy Automakers See Massive Spike In Sales
  • 3 days Tesla's Biggest Competitor Is Going Cobalt-Free
  • 4 days Stocks That Could Benefit From Biden’s $2.5 Trillion Infrastructure Plan
  • 6 days The Mafia Has Expanded Its Influencer Under COVID-19
  • 7 days How Fintech Will Get Skeptics Into Crypto
  • 8 days Monday Markets Rise On Stellar Jobs Report
  • 11 days Not Even Bribery Allegations Can Crush Cannabis Boom
  • 15 days Canada May Become Leader In Booming Battery Market
  • 16 days Nearly 42% Of All Amazon Reviews Are Fake
  • 17 days Kidnapping Is Big Business In Nigeria
  • 18 days COVID Fraud Amounts To Nearly $570M
  • 21 days Art Is Now An Algorithm
  • 22 days TikTok Threatens America, Tesla Threatens China
  • 22 days Small-Cap Energy Sectors With Big Upside
  • 25 days Coinbase Valued At $68 Billion Ahead Of IPO
  • 28 days 3 Stocks To Watch Amid AstraZeneca Covid Vaccine Snafu
  • 29 days Get Ready For First Tax Hike Since 1993
  • 32 days Tech Majors Bet Big On Clean Energy
Are Bots Responsible For GameStop’s Massive Runup? 

Are Bots Responsible For GameStop’s Massive Runup? 

Cybersecurity firm PiiQ Media determined…

The Simple Secret To Tesla-Like Gains

The Simple Secret To Tesla-Like Gains

The big secret to making…

US-Listed China Stocks Have 3 Years To Become Transparent

US-Listed China Stocks Have 3 Years To Become Transparent

As widely expected, US president…

Josh Owens

Josh Owens

Writer, Safehaven.com

Josh majored in International Relations at the University of Edinburgh and is currently the Content Director at Oilprice.com. Josh has over 6 years of writing…

Contact Author

  1. Home
  2. Investing
  3. Stocks

Dow Posts Record Gains Despite Robinhood Meltdown

Dow Record Gains

The market oversell is already well past the point of rationality, and that’s when the vultures start swarming, feeding the panic and making the selloff even worse while they rake in millions on shorts. 

Enter ‘Dr. Doom’, who is calling another market crash. But this time, it’s not just coronavirus panic calling the shots, he says, it’s politics--because Trump is “dead” and the Democrats are lame. 

Also known as economist Nouriel Roubini, ‘Dr. Doom’ told Germany’s Der Spiegel that he expects “global equities to tank by 30% to 40% this year”, and he advises all to put their money into “cash and safe government bonds”. 

And while ‘Dr. Doom’ is telling everyone to hedge against a crash, if everyone decides they’re “better safe than sorry”, in an interminable cliche, the market will certainly come crashing down around us. 

The flurry of panic even succeeded in temporarily shutting down Robinhood, the no-fee trading app adored by younger generations who appreciate the leveling of this playing field.

That’s some heavy trading volume, indeed. So please keep feeding the panic. 

The problem with panic is that it’s much more dangerous than the coronavirus itself. Those who wouldn’t panic get caught up in the wave, worried that the fear-sellers will force the entire market down and take everyone with them. 

The panic certainly won’t help Trump. 

His re-election sort of depends on not having a market crash, which Trump is blaming on the coronavirus and the Democrats, whom he accuses of hyping this up in the media. 

What’s burdening him is probably the story told in a collection of charts published by Forbes comparing the markets under Obama and Trump.  The first one shows the Dow up 28% under Trump, while over the same timeframe it was up 62% under Obama. 

Here’s the thing about the market, and panic. There are usually enough level heads around to see the opportunity and buy on the dip. 

Related: Wall Street Unfazed By Recession Fears

That’s what happened this morning, pushing the Dow to jump as much as 1200 points. It still has a ways to go because last week was the worst week the market has seen since 2008. 

“The market has been conditioned to buy on any weakness,” Keith Buchanan, portfolio manager at GLOBALT, told CNBC. “I think we’ll look back at these past few years at some point as some level of complacency.”

Aside from the level heads that manage to stay above water and view the opportunity to buy on the cheap, the market will also start responding to hints of central bank stimulus. 

What the markets want to hear is that someone is going to step in with some creative fiscal policies to prop things up before it hits a point of no return. 

Already, stocks in London are on the rebound because investors are hedging their bets that there will be some stimulus. 

Markets are also being buoyed to some extent by Credit Suisse’s statement that the economic response to the coronavirus crisis must be government-led. 

So, panic if you want to, but it’s not helping anyone. The oversell is oversold, and this is clearly a buy-the-dip opportunity. 

By Josh Owens for Safehaven.com 

More Top Reads From Safehaven.com:

Back to homepage

Leave a comment

Leave a comment