The market is very volatile as of late. Gone are the gentle rising days of 2017.
Yesterday, the market was beat down as a result of the techs. Technology has been leading the market for a while now. Facebook gets in trouble and the whole lot of techs get pounded down. More interesting is that the instability of prices was fairly wide throughout the market encompassing other industries as well.
There are a lot of different techs doing different things. The simplest dichotomy is between hardware and software. Facebook is clearly software. It is interesting that the downdraft painted all the techs even though the issue with FB was specific to FB.
I believe the mass downdraft in tech is an unfavorable sign for the market. It is definitely the "butterfly" effect, but it goes to show you how any small change can have far reaching ramifications in such an unstable market. Expectations are so high right now and show in the tech P/E's.
I prefer to keep safe than chasing the "pie in the sky"! To me, the market appears to be on tenuous footing.
Also interesting is the pickups in equity inflows into the market. This is a classic late bull market sign that the "dumb" money is pouring into the market.
Sure, I may miss some upside by being cautious, and I am good with that. Remember "Bulls make money. Bears make money. Pigs get slaughtered"!
