Key insights
- The author predicts extreme market volatility due to the removal of the PDT rule, comparing the current market to 1999. Concerns are raised about speculative trading fueled by stimulus, potential impacts of prolonged conflict on oil supplies, and job displacement by AI. These factors suggest a bearish outlook for US equities.
PDT suspension will become a life saver for those with small funds now able to quickly reverse course yet Robinhood and stimulus checks showed us what really happens when not ready for prime time given unfettered access to markets. I’m expecting volatility the likes of which the market has never seen before coupled with trillion plus valuations based on less than trillion based valuations in a market resembling 1999 further impaired by what might become another never ending war which has serious impacts on global oil supplies plus threat of AI taking white collar job who will now compete with blue collar talent.
What could possibly go wrong? I might start scalping morning rush again.