U.S. Stock Market Plunge – What You Need to Know
- The U.S. Market is currently at one of its lowest overall P/E ratios in years
- The U.S. Market was devalued 6% ($2 trillion) this week
- Comparatively, its current valuation is at mid-2014 levels (chart below)
- Manufacturing, Services, and Technology sectors hit hardest
- Conglomerates and Utilities fared best
- The bigger they are, the harder they fall – Positive 38% correlation between a stock’s P/E at the start of this week and percentage lost at the end of the week
Summary: Don’t let a market dip freak you out; the stock market routinely fluctuates up and down.
Strong companies survive and even flourish after dips. Overvalued, hyped companies crash to pennies.
Invest wisely and prosper from other people’s fear and greed.