There was panic in the market yesterday and we saw a big selloff in tech stocks. Markets were down 2.6% which is still not too much in the grand scheme of things as we are still close to the highs. Only down to 3 month lows or so. Where do we go from here? All the experts are saying we go lower which means that we will probably go higher.
Frankly the acronym that makes the most sense for the past 30 years or so that I have been watching the markets has been TINA or There Is No Alternative. Basically, where else will you put your money other than in the stock market? The bond market? No. The housing market? A little bit, maybe. Crypto? Again, some. But when it is all said and done, we will end up pumping the money into the stock market.
Now, another indicator that I talked about previously was that the VIX indicator should be in the 28+ region before making a purchase. It was at 22 last night so if it gets there, I will be putting some money to work again. Till then, it will remain on the sidelines.