Market Summary 3rd January 2024
The start of 2024 saw a quick drop in the stock market. This happened because many people got too comfortable with the gains they saw at the end of last year. It's always tough to lose some of the profits you've made, but it's even tougher if you bought stocks late when they were already high. Avoiding common mistakes can really help you stay ahead in the market. You can tell that people quickly switched from being eager to buy (FOMO) to being scared (FEAR) by looking at the percentage of stocks doing better than they were five days ago – it dropped from 87.6% last week to just 25% today.
The day was marked by a lot of shifting in the market. Some parts did okay, but the high-growth areas were hit quite hard. Many of the stocks I am looking at dropped more than 2%
It's important to note that there are still more stocks hitting new highs than lows on both exchanges. However, avoiding or at least lessening these big drops makes it easier to stick with a trend. There wasn’t one big event that caused this downturn; it was more a mix of smaller events happening at the same time, along with investors who were a bit too relaxed. For example, $Apple(AAPL.US$ was downgraded, and there were weaker than expected reports on the economy (GDP forecasts and PMI), which led to higher interest rates and a stronger US dollar.
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