Historically, when a market drops, do essentially all stocks drop with it?

We have a data point on this less than a year old

When we crashed in Feb/March, nearly every stock dropped with it

Now if you mean a general dip, no many stocks will not move with the market

The cross-asset correlation has never been stronger. When stocks fall so do bonds, gold, BTC etc...

Historically as of 2021, everything moves in perfect harmony with the broad market except BB, BNGO, GME and ZOM.

But in all seriousness, Yes. 95% of the stocks move in the general direction of the market. There are outliers every day though. Just have to find them.

Biden will kill this market. just a matter of time.

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Biden will kill this market. just a matter of time.

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This keeps me up at night. I’m new to the stock game and starting investing after the Covid crash. Because of that, most of my stocks have gained and I realize it’s a unique time and not usually this easy to make money. But if the market crashes by 30%, I’ll puke.

Although I don’t have what most people would consider a large amount, it’s a lot to me. I’m well diversified though and I guess that as protected as I can be.

Green energy
Oil and Gas
Tech
Medical
Crypto

Near 20% in each.

Well, looks like we agree again.

I don't say this out of a desire for Schadenfreude, but at some point, all major (especially near parabolic) market moves revert to the mean. Sometimes they ease back, sometimes it's more violent. And few ever expect it or accurately predict the timimg. I mean, black swans seldom sing a warning call on their way to poop on your newly washed car, right?

It doesn't bother long(er) term investors, but for inexperienced traders, who've never experienced it before and might have weak-handed trading positions, it can be heart wrenching. Good luck to them.

There is a measure called “Beta” that basically indicates how much a stock moves in relation to the market as a whole. A 1.0 Beta indicates that the stock is perfectly correlated with the market (a 5% drop in the market would lead to a 5% drop in the stock). Think of beta as a multiplier. I think there are even some negative beta stocks that tend to move opposite of the general market (think like repo firms which have more business when the economy sucks).

Beta is calculated based on historical returns, so it isn’t perfect by any means and highly dependent on the historic time frame you use. Also, things tend to all go down together when shite hits the fan.

Well, it’s not like you can avoid the 30% loss. If you sell to avoid the 30% loss, you have to pay roughly 30% in cap gains, so the only real solution is to play the long game, and buy heavy when the market is down.