Thanks to a tag-team effort between Japan’s 1987-style stock market crash and Warren Buffett unloading shares like he was clearing out a garage sale, Wall Street collectively freaked out and decided the market was WAY overvalued. 

The Dow took the biggest hit, dropping over 1,000 points. Not to be left behind, the Nasdaq retreated 3.5%, dragging tech stocks back from all the recent gains. Even the S&P 500 decided to join the chaos, slipping 3%.

As if things weren’t dark enough, the "fear gauge" (aka the VIX) soared to its highest level since the COVID-19 panic days of March 2020. You know things are getting bad when comparisons to the COVID crash start popping up.

Treasury yields fell, with the 10-year yield near 3.8%.

But with Warren letting us all down, there is another old man trying to save us.

Wharton’s Jeremy Siegel is waving a big red flag, urging the Fed to cut rates by 75 basis points immediately after a jobs report that was about as disappointing as finding out the final season of Stranger Things won’t be out until 2025. He’s basically saying, "Come on, Fed, doing nothing makes no sense!" Siegel’s even suggesting another cut next month, just to really drive the point home.

Despite the fact that unemployment is up and inflation is down, the Fed kept rates at 5.25%-5.5% after their last meeting. It’s like they’re playing a game of “Let’s Pretend Everything’s Fine,” and Siegel is not having it.

He’s reminiscing about the good old days when Greenspan made an emergency cut in 2001 and the markets rallied like it was New Year’s Eve. Siegel believes that an emergency cut now would have a similar effect. But if the Fed decides to drag its feet, he predicts more bad news ahead.

Take a look at today’s heatmap, it’s like playing “where is waldo” trying to find green.

Exposing Jamie Dimon’s Idiotic Call

Remember back in March when J.P. Morgan came out and called us all a bunch of Debbie Downers for even asking if the Magnificent 7 Stocks were overvalued? Well, they're pretty quiet right now. In fact, after I post this, I might send Jamie Dimon a DM just so he knows I’m right and he’s wrong.

Fast forward to today, and the stock market gods have spoken: J.P. Morgan was dead wrong. The Magnificent 7 stocks, which they swore were undervalued, just experienced their worst intraday trading loss ever.

J.P. Morgan's analysts, in their infinite wisdom, assured us that the AI-energized mega-cap stocks were still reasonable buys. They argued that despite their sky-high returns this year, these stocks were trading at valuations less stretched than in previous years.

But it turns out all the so-called “fearmongers” were finally right about their comparison to the “Nifty 50” in the 70s and the dot com bubble in the late 90s. 

Nvidia crapped the bed 6%. Alphabet slid 4%, perhaps in need of a new search algorithm for their stock price. Meta, dropped over 2%, proving to Zuck that even virtual worlds can't escape market reality. Tesla skidded more than 4%. Amazon and Microsoft joined the plunge dropping 4% and 3%, and even our usual tech saviour Apple was hit by a double whammy of market sell-off and Berkshire Hathaway dumping half its stake, fell more than 4%.

This just goes to show, you can never fully trust analysts. But that said, I actually think this is an incredible buying opportunity if you believe in Apple, Tesla, Amazon, and the other Mag 7 companies like I do.

I know what you’re thinking: “Wait, but didn’t you just say they’re overvalued?” Yes, but let’s be real. The market has been overvalued for years and still goes up.

I don’t know about you but I’m always complaining about how these big tech stocks are taking up all the oxygen, but secretly, I’m just waiting for days like this to buy up more. So, Jamie, if you’re reading this, consider this my digital ‘I told you so’—and yes, I'm still buying.

Stock.News has positions in Amazon, Apple, Tesla, Microsoft, Meta, and Alphabet.