The indices overcorrected in the COVID plunge. A correction was due, and COVID caused panic selling. Many of these investors bought early during Obama, saw 16% per year, so even selling at 2,200 which is still 300% over 11 years.
Then when indices fell further, those same profits were reinvested at bargain rates.
Values rebounded, the the fed threw trillions at corporate bonds, cementing cash positions & funding new expansion at far more favorable debt load.
The markets shot past the upper limit of the aggregated microeconomic equilibrium, econometricians compute.
So, it's overvalued again.
Acknowledging the overvaluation, those that bought Dow shares at 18k, sold happily at 26k. 44.4% is 5 months!
The issue is that grabbing the profits now suggests an expectation of a larger correction to come.
So, given the overarching economic value, 1 or 2 days may be, and has been in the past, more of an indicator than your post suggests.
Like you, I'm no longer tied to the indexes nor to individual equities. My money is annuitized in three funds, with a weighted average 5.85% target yield. However, they're a hybrid investment/income insurance policy.
So, while the money is likely earning far more than 5.85%, these are "zero is hero" plans. The principal can never go down.
The volatility no longer means much to us, but I still can review the conditions that trigger fund reactions. I can't predict them, but I can definitely explain why things occurred quite a bit of the time.
Pretty sure, this is one of those times!
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