After a sudden tumble, can the stock market regain its magic?

After a sudden tumble, can the stock market regain its magic?
oooussama

It’s fair to say there was surprise, even disappointment, because the great 2023 year-end rally ended, well, at the end of 2023.

The major averages all fell in the first week of January, with big tech stocks absorbing some of the biggest declines after investors rejoiced in a massive nine-week rally and hoped for continued gains going forward.

This page requires JavaScript.

JavaScript is required to be able to read premium content. Please activate it in your browser settings.

kAm|2J36 E96 82:?DH:==DE2CE FA 282:?]~?6 >65:@4C6 H66< 5@6D ?@E >2<6 2 J62C 325] %96 C62= 92?5\HC:?8:?8 H:== 4@>6 :7 AH 96 >2C<6E 92D?VE C63@F?565 3J E96 6?5 @7 E96 >@?E9]k^am

kAm%92EVD 3642FD6 y2?F2CJVD A6C7@C>2?46 😀 @7E6? 2 D:8?2= @7 9@H E96 >2C<6ED H:== A6C7@C>]XEVD 366? 244FC2E6 f_T @7 E96 E:>6 D:?46 `hah]$@[ 2 8@@5 y2?F2CJ >2J >62? 2 8@@5 J62C 7@C DE@4

kAmy2?F2CJ a_ab D2H E96 $E2?52C5 U2>Aj !@@CVD d__ x?56I kDA2?mWkDEC@?8mk2 9C67lQ9EEADi^^HHH]E96DEC66E]4@>^BF@E6^/x}Qm/x}k ^2mk^DEC@?8mX\k2 9C67lQ9EEADi^^D64FC6a]E96DEC66E]4@>^42A^AC>]5@n~xsl_bbbedU2>AjE:4<6Cl/x}Qmv6E uC66 #6A@CEk^2mk^DA2? m C:D6 c]dT]%96 :?56I 6?565 E96 J62C FA aa]cT]k^Am

kAm(9:49 3C:?8D FD E@ EH@ DE@4^BF@E6^pp!{Qmpp!{k^2mk^DEC@?8mX\k2 9C67lQ9EEADi^^D64FC6a]E96DEC66E]4@>^42A^AC>]5@n~xsl_bbbedU2>AjE:4<6Clpp!{Qmv6E uC66 #6A@CEk^2mk^DA2?m 2?5 q@6:?8  kDA2?mWkDEC@?8mk2 9C67lQ9EEADi^^HHH]E96DEC66E]4@>^BF@E6^qpQmqpk^2mk^DEC@?8mX\k2 9C67lQ9EEADi^^D64FC6a]E96DEC66E]4@>^42A^AC>]5@n~xsl_bbbedU2>AjE:4<6ClqpQmv6E uC66 #6A@CEk^2mk^ DA2?m]k^am

kAmpAA=6;F>A65 cgT 😕 a_ab]%96 E649 8:2?E 😀 DE:== E96 >@DE G2=F23=6 4@>A2?J 😕 E96 H@C=5]%9:D H66[ E92?@56DE 2E 36DE[ E96 D92C6D 76== d]h t]k^am

kA 2=:8?lQ46?E6CQmkDEC@?8mk2 9C67lQ9EEADi^^HHH]E96DEC66E]4@>^E649?@=@8J^d\DE2C\2?2=JDED\56=:G6C\2\3=F ?E\H2C?:?8\23@FE\2AA=6D\DE@4

As depth@6:?8[ FA be]GT 😕 A_AP E92?a:@? @7 EC2G6= 2?5 ?6H @C56CD[ 76== c]dT E9:D A2DE H66<]k^Am

kAmp?5 H6 5@?VE<6@77 7C@> !@CE=2?5[ ~C6] k^am

kAm%96 u656C2= pG:2E:@? p5>:?:DEC2E:@? @C56C65 `f` fbf |2I A=2?6D @A6C2E:?8 😕 E96 &?:E65 $E2E6D 8C@F?565 A6?5:?8 D276EJ :?DA64E:@?D]%96D6 E2<6 7@FC\E@\6:89E 9@FCD E@ 4@>A=6E6[ E96 k2 9C67lQ9EEADi^^HHH]722]8@G^?6HDC@@>^722\DE2E6>6?E\E6>A@C2CJ\8C@F?5:?8\46CE2:?\3@6:?8\fbf\>2I \h\2:C4C27EQmupp D2:5 $2EFC52Jk^2m]k^Am

k9am~E96C D@FC46D @7 F?62D6k^9am

kAmkDEC@?8mx?E6C6DE C2E6D C@D6 2 3:E =2DE H66<]k^DEC@?8m %96 `_\J62C %C62DFCJ J:6=5 7:?:D965 uC:52J 2E c]_ceT @? uC:52J[ E96 7:CDE 4=@D6 23@G6 cT D:?46 s64] `b] xE :D DE:== @77 7C@> E96 :?EC252J @7 d]_aaT @? ~4E]ab]k^am

kAmkDEC@?8mrCF56 @ := C@D6 bT E@ Sfb]g` 32CC6=]k^DEC@?8m {F4<:=J[ 9@H6G6C[ E96 ?2E:@?2= 2G6C286 AC:46 @7 82D@=:?6[ 9@H6G6C[ 76== D=:89E=J E@ Sb]_gb 2 82==@? 3J $2EFC52J[ k2 9C67lQ9EEADi^^82DAC:46D]222]4@>^QmE96 p>6C:42? pFE@>@3:=6 pDD@4:2E:@? C6A@CE65k^2m]%96 AC:46 😀 5@H? A_]eT D:?46 $6AE `g 2?5 92D 72==6? @? `e @7 E96 =2DE `a` 52JD]k^Am

kAmkDEC@?8mr@?E:?F:?8 C6A@CED @7 4@CA@C2E6 DEC6DD]k^DEC@?8m )6C@I w@=5:?8D kDA2?mWkDEC@?8mk2 9C67lQ9EEADi^ ^HHH]E96DEC66E]4@>^BF@E6^)#)Qm)#)k^2mk^DEC@?8mX\k2 9C67lQ9EEADi^^D64FC6a]E96DEC66E]4@>^42A^AC>]5@n~ xsl_bbbedU2>AjE:4<6Cl)#)Qmv6E uC66 #6A@CEk^2mk^DA2?m :DA=2??:?8 E@ 4FE :ED 8=@32= H@C<7@C46 3J `dT] $ECF88=:?8 5CF8\DE@C6 8:2?E (2=8C66? q@@ED p==:2?46 kDA2?mWkDEC@?8mk2 9C67lQ9EEADi^^HHH]E96DEC66E]4@>^BF@E6^(qpQm(qpk^2mk^DEC@?8mX\k2 9C67lQ9EEADi^^D64FC6a]E96DEC66E]4@>^42A^AC>]5@n~xsl_bbbedU2>AjE:4<6Cl(qpQmv6E uC66 #6A@CEk^2mk^DA2?m 4FE :ED 5:G:56?5 3J agT] %6D=2  kDA2?mWkDEC@?8mk2 9C67lQ9EEADi^^HHH]E96DEC66E]4@>^BF@E6^%$pQm%$pk^2mk^DEC@?8mX\k2 9C67lQ9EEADi^^D64FC6a]E96DEC66E]4@>^42A^AC>]5@n~xsl_bbbedU2>AjE:4<6Cl% $pQmv6E uC66 #6A@CEk^2mk^DA2?m 76== c]cT @? E96 H66< E@ Sacf]ch :? A2CE 3642FD6 @7 ?6HD :E :D ?@ =@?86C E96 36DE\D6==:?8 6=64EC:4 G69:4=6 >2<6C] xE ?@H 2AA62CD r9:?2VD q*s :D E@AD] p?5 7@@5 AC@46DD:?8 8:2?E r@?p8C2 qC2?5D  kDA2?mWkDEC@?8mk2 9C67lQ9EEADi^^HHH]E96DEC66E]4@>^BF@E6^rpvQmrpvk^2mk^DEC@?8mX\k2 9C67lQ9EEADi^^D64FC6a]E96DEC66E]4@>^42A^AC>]5@n~xsl_bbbedU2>AjE:4<6ClrpvQmv6E uC66 #6A@CEk^2mk^ DA2?m D2:5 a_ac D2=6D H6C6 =:<6=JE@ 72== `T\E@\aT]xE 925 366? AC@;64E:?8 2 `T 82:?]%96 D92C6D[ =:EE=6 492?865 @? E96 H66< 2E Sag]A`@? University of California: 52J[ 76== afT :? a_ab] k^am

k7:8FC6mk:>8 DC4lQ9EEADi^^HHH]E96DEC66E]4@>^]:>286^407:ETar90g__TarH0`a__^K”d@G6>36CVD `fb[___ 2?5 36EE6C E92? 6IA64E65] k^am

kAm%96 F?6>A=@J>6?E C2E6 96=5 2E b]fT]k^Am

kAm%96 ?F>36CD 2C6 AC@323=J ?@E E92E C@3FDE 3FE H:== DE:== 36 8@@5 😕 E96 ?6IE EH@ C6G:D:@?D]k^Am

k9am(:== E96 $tr 2AAC@G6 2 4CJAE@ t%unk^9am

kAm%96 3:8 6G6?E E9:D H66< H:== AC@323=J 4@>6(65?6D52J[ H96? E96 $64FC:E:6D 2?5 tI492?86 r@>>:DD:@? 😀 DFAA@D65 E@ 564:56 H96E96C E@ 2AAC@G6 E96 :562 @7 6I492?86\EC2565 7F?5D E92E :?G6DE 😕 4CJAE@4FCC6?4:6D] k^am

Camp 5@K6? @C >@C6 2DD6E >2?286CD H2?E 2AAC@G2=[ :?4=F5:?8 q=24<#@4<  kDA2?mWkDEC@?8mk2 9C67lQ9EEADi^^HHH]E96DEC66E]4@>^BF@E6^qzQmqzk^2mk^DEC@?8mX\k2 9C67lQ9EEADi^^D64FC6a]E96DEC66E]4@>^42A^AC>]5@n~xsl_bbbedU2>AjE:4<6ClqQmv6E uC66 #6A@CEk^2mk^DA2?m[ x?7@DJD  kDA2?mWkDEC@?8mk2 9C67lQ9EEADi^^HHH]E96DEC66E]4@>^BF@E6^xu*Qmxu*k^2mk^DEC@?8mX\k2 9C67lQ9EEADi^^D64FC6a]E96DEC66E]4@>^42A^AC>]5@n~xsl_bbbedU2>AjE:4<6Clx u*Qmv6E uC66 #6A@CEk^2mk^DA2?m 2?5 C68:@?2= 32?< 4@>A2?J (2u5 kDA2?mWkDEC@?8mk2 9C67lQ9EEADi^^HHH]E96DEC66E]4@>^BF@E6^(pusQm(pusk^2mk^DEC@?8mX \ k2 9C67lQ9EEADi^^D64FC6a]E96DEC66E]4@>^ 42A^AC>]5@n~xsl_bbbedU2>AjE:4<6Cl(pusQmv6E uC66 #6A@CEk^2mk^DA2?m]k^Am

kAmkDEC@?8m%96 7:?2?4:2= 8:2?ED 4@>6 :?]k^DEC@?8m uC:52J 😀 E96:C 52J ​​​​E@ D9:?6 ]% 96J :?4=F56 962=E9\:?DFC2?46 8:2?E &?:E65w62=E9 vC@FA kDA2?mWkDEC@?8mk2 9C67lQ9EEADi^^HHH]E96DEC66E]4@>^BF@ E6^ &wQm&}wk^2mk^DEC@?8mX\k2 9C67lQ9EEADi^^D64FC6a]E96DEC66E]4@>^42A^AC>]5@n~xsl_bbbedU2>AjE:4<6Cl&}wQmv6E uC66 #6A@CEk^2mk^DA2?m[ y!|@C82? r92D6  kDA2?mWkDEC@?8mk2 9C67lQ9EEADi^^HHH]E96DEC66E]4@>^BF@E6^y!|Qmy!|k^2mk^DEC@?8mX\k2 9C67lQ9EEADi^^D64FC6a]E96DEC66E]4@>^42A^AC>]5@n~xsl_bbbedU2>AjE:4<6Cly!| Qmv6E uC66 #6A@CEk^2mk^DA2?m[q=24<#@4[q=24<#@4<[ r:E:8C@FA  kDA2?mWkDEC@?8mk2 9C67lQ9EEADi^^HHH]E96DEC66E]4@>^BF@E6^rQmrk^2mk^DEC@?8mX\k2 9C67lQ9EEADi^^D64FC6a]E96DEC66E]4@>^42A^AC>]5@n~xsl_bbbedU2>AjE:4<6ClrQmv6E uC66 #6A @CEk^2mk^ DA2? M[ q2?< @7 p>6C:42  kDA2?mWkDEC@?8mk2 9C67lQ9EEADi^^HHH]E96DEC66E]4@>^BF@E6^qpr){Qmqpr){k^2mk^DEC@?8mX\k2 9C67lQ9EEADi^^D64FC6a]E96DEC66E]4@>^42A^AC>]5@n~xsl_bbbedU2>AjE: 4<6Clqpr)Qmv6E uC66 #6A@CEk^2mk^DA2?m[ (6==D u2C8@  kDA2?mWkDEC@?8mk2 9C67lQ9EEADi^^HHH]E96DEC66E]4@>^BF@E6^(urQm(urk^2mk^DEC@?8mX\k2 9C67lQ9EEADi^^D64FC6a]E96DEC66E]4@>^42A^AC>]5@n~xsl_bbbedU2>AjE:4<6Cl(urQmv6E uC66 #6A @CEk^2mk^DA2?m 2?5 q2?< @7 6H *@C< |6==@?  kDA2?mWkDEC@?8mk2 9C67lQ9EEADi^^HHH]E96DEC66E]4@>^BF@E6^qzQmqzk^2mk^DEC@?8mX\k2 9C67lQ9EEADi^^D64FC6a]E96DEC66E]4@>^42A^AC>]5@n~xsl_bbbedU2>AjE:4<6ClqzQmv6E uC66 #6A@CEk^2mk^ DA2?m]k^am

kAms6=E2 p:C {:?6D kDA2?mWkDEC@?8mk2 9C67lQ9EEADi^^HHH]E96DEC66E]4@>^BF@E6^sp{Qmsp{k^2mk^DEC@?8mX \k2 9C67lQ9EEADi^^D64FC6a]E96DEC66E]4@>^42A^AC>]5@n~xsl_bbbedU2>AjE:4<6Clsp{Qmv6E uC66 #6A@CEk^2mk^DA2?m[ E96 D64@?5\=2C86DE &]$]\32D65 2:C=:?6[ 2=D@ C6A@CED @? uC:52J]k^am

#sudden #tumble #stock #market #regain #magic




sidaliii

RELATED ARTICLESMORE FROM AUTHOR