Commentary
The strategy of buying the dip went on for months, with unrelenting hope that this was all surely temporary. The economy was opening. Congress was spending. The Fed surely would not crash the markets before the November election. All will be well. No reason to panic. Not even weekly warning by the Fed would convince a generation of traders who have only known bull markets that times have really changed.
Part of the illusion traces to two years ago when the unthinkable happened. Governments all over the world locked down people and trade. Sure, markets suffered a bit but then the financials came roaring back. All this happened despite the Biden administration’s unfriendly view toward growth, its intensification of regulations, and its uncomprehending schemes imposed on sector after sector….