r/stocks • u/Chrissylumpy21 • 2d ago
Crystal Ball Post Is Black Monday Incoming?
So much fear in the markets and this time really feels different. All the Mag7 stocks are so hit by the tariffs our iPhones will probably cost $5,000 soon and as the world slows, people will use Amazon less, advertise less on FB/IG. No one is buying Tesla anymore. Who needs anymore AI chips, yet AI is decreasing Google searches.
I fear the world is realizing it all this weekend. Or is it just me that sky appears to be falling?
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u/pbwra 2d ago
I mean if you think the S&P 500 companies are not premium offerings in a heavily tariffed environment, and therefore don't warrant a premium multiple, and think their earnings guidance might falter in the next round of earnings in the next month, where might it end up? A normal PE of like 16 as against the 22ish it has fallen to, with reduced earnings instead of projected earnings growth, could still see 40% down from here and that is just a re-rating and ignores any serious negative sentiment like capitulation or other trade related headwinds.