Latest / Black Box Theory Podcast / BBT #09 Snippet | The S&P Is Down 15%, the Russell Is in Correction & Nobody Is Coming to Save You
Transcript
- Thomas: the and P just dropped for the week straight. The Russell 2000 ⁓ has entered correction territory, ⁓ $5.7 trillion ⁓ in option ⁓ options expired on Friday and The Fed said they're not cutting rates. Here's exactly what you need to know. For those who might not be invested or might not be watching, Friday was extremely ugly. I know I opened my portfolio and it looked like it was my time of the month. The S &P fell 1.51 % to 6,506. The NASDAQ dropped 2.01 % to 21,648. Dow shed 444 points. Russell 2,000. Like I said, entered that ⁓ correction territory down 10 % from its highs. This was the S &P's fourth consecutive week in a decline. ⁓ All the options expiring, adding massive volatility. ⁓ The damage underneath the index is worse. 40 % of S &P 500 stocks are in individual bear markets, which means down 20 plus percent. ⁓ 97 % of software stocks are below their 52 week highs. The Fed rates at 3.5 to 3.75 % Wednesday and the market now prices in zero rate cuts for 2026. Some analysts at Macquarie think the next Fed move might be a hike, not a cut. We are sizzling. malcolm: Yeah, dawg. I don't know, bro. It's scary, bro. I know I said earlier, like... capital because prices may not Understandably, we don't know, it's one of them situations like buying the dip could be buying the high because we don't know when this dip gonna stop. like I said before, bro, like I know it's hard to hear it and visualize it because, you know, we thinking about the end of the day, folks got bills to pay, folks got rent, folks got kids to feed, folks got it. You have to keep a roof over your head, closing your back, food on the table to get it to the point where you can think about long-term investing. So I 100 % understand and I empathize with those who understandably cannot make those type of deployments as far as capital goes into all of these investments right here at this moment, because you've got to take care of yourself today. However... portion of that, you know. said and you can rebalance or kind of adjust your portfolio or your allocations as needed but I will say that a part of us does have to always think about our future selves like everything cannot go towards today and tomorrow or next week we have to think about ourselves five years from now so like I said like I said I know things are bleeding right now like a down year like I said you have to remember it's only March we're also in a very high ⁓ Thomas: Mm-hmm. malcolm: very high stress, you know, kind of economic state right now, ⁓ globally. So understandably, like it makes sense why the market is reacting the way it is. ⁓ So like I say, you just kind of got to just keep, you know, stay abreast of the news, you know, and just try to invest where you can, make the right strategy for yourself. But I hope that investors who are Thomas: Mm-hmm. malcolm: maybe just now breaking, I feel for investors who may be kind of like just now breaking in for the first time this year and they feel like, bro, I'm just losing all my money. This is a waste of time. Time in the market always beats market timing, no matter what. People that make the most money, it's not from quick trades, not from boom, boom, boom, know, quick swing trades, quick day trades. It's for people that hold for five, 10, 15, 20 years, consistently reinvesting their dividends and then living off of that, right? So that's kind of how you got to think. If you don't believe me, you can go ask Warren Buffett, just like this small guy, know, very minimal net worth. So you can double check with him and his strategies if you don't believe random guy on podcasts. ⁓ But yeah, man, like I said, bro, just try your best to not be discouraged. ⁓ Stay abreast of the news, understand what's going on everywhere, and just take control of portfolio as proactively as possible. We're get through this together, for sure. Thomas: you Thanks.