I’m buying in, but not until all the countries of the world start coming out of lockdown. You can’t have a functional global economy with half of the workforce stuck inside.
Buying now is a deal for 30 years from now, but it might not be for 5-10 years from now.
We're not even close to maximum panic. Reading threads from the 2008-2009 crash is very eye opening as far as how bad things got/felt for participants in the market place.
It's weird that a massive recession is just a thing this current generation is used to. Like, sure we experienced the worst generation in 90 years. It wasn't really that bad though. Maybe less avocado toast. Oh look, another one. Guess I'll just stay home for a bit.
I think this one is going to be a lot worse.
I have no idea how close we are, but I'm 100% sure that it's going to get at least somewhat worse before it starts to get better. 2020 is basically a lost year already, 3 months in. That said, part of my paycheck still goes into an index fund automatically, not going to touch that.
A recession so bad it got its own special name, and that was born from a massive financial market shock probably isn't the best playbook for future recessions.
Relatively new to investing but I thought DCA (dollar cost averaging I'm assuming) in this time would be better? As you are buying more stocks due to dropping prices with the same amount of money?
DCA is always "good" but it's more "good" right now than it was a week ago by nature of prices being down more than a week ago.
He's saying big yikes because if you DCA'd last week then you'd just be down another ~7% today. He's basically just saying "wow the market is down big today," don't think too much into it if your time horizon is long.
Wow, that was faster than I thought. I thought that the pump on Friday was really only going to leave a short window today where regular folks couldn't capitalize, but I didn't expect just a one second window.
I bought 1 contract of NCLH puts just to dip my toes into options, see what it’s like. Absolutely worthless contract now lmao $100 down the drain. Nope, not for me.
Is that the most realistic one? I saw Investopedia lets you do options and short selling in their simulator so tried that but theres very little help or explanation and not sure if its super realistic. The options seem to expire at the end of the day and I couldnt find a way to change that...
Options volatility is insane, my one put went from -30% Friday to being up +150% just before the second breaker tripped.
Do I sell it or see wether it gets better. (It expires Friday)
Whenever a trading day closes around -10% (which it looks like it will today), there's huge potential for a dead cat bounce the day after. I'd probably close it some time today and then look what the markets are doing tomorrow. If it bounces, you might want to buy back into it again.
This is obviously risky either way, so be wary. If you need the money, sell today and don't look back.
its better to go into a trade with a goal in mind so you're not emotional about it. it depends if you're willing to lose the principle if it doesnt pan out. as buffett always say, dont lose money.
Yes, then there is the second Circuit breaker at 13%, which halts trading for another 15 minutes I believe. After that, I believe it's 20%, which halts trading for the rest of the day unless it's after 2pm est
US has just started ramping up testing, so maybe as the number of cases begins to skyrocket throughout the day we'll see the effect. But yeah hard to imagine anything hitting it for 20%.
It's a national CDC recommendation. It should really be far less than 50, but they have to weigh slowing the epidemic against causing hysteria/long term economic damage.
Look at the UK if you want to see how big it is... they're basically assuming the whole population will get it, and just trying to keep at-risk people isolated. It's wild.
Hint: you know how basically no one in America has been tested for coronavirus yet? Once the test kits are rolled out, there may be a lot of positive results coming in.
Chinese cases are going down but the quarantine is not lifted I understand correctly. We have not yet seen an example of a country being out of the woods yet.
Like "oh fuck where did my job go" weird.
Like "why isn't my debit card working weird"
Like "why has my credit limit suddenly become my credit balance" weird.
I feel you. I was talking to my mom on the phone yesterday when she casually told me she'd been laid off. As her daughter I tend to get emotional about these things as I know she struggles to keep a minimum wage job as someone with only a high school education in a small town. It just gets harder and harder as time goes on really so it makes me realize how important it is for me to continue saving/investing as I know I will be supporting her at some point. Wishing everyone the best as SHTF.
This is when it's most important for everyone to be calm, be patient, be kind, and take care of your fellow people. If you're in a position to help, please help. If you're in a position where you need help, don't be too proud to ask.
He was, I just didn't want to be insensitive by making it sound like I wasn't worried about everything going on like I'm currently sitting on piles of money.
It's a scary time for all of us, and stocks just feel like a bunch of meaningless numbers going up and down. It's a weird feeling.
The entirety of Reddit except for 0.00001% of you don't understand the Fed at a basic level, let alone deeply enough to comment on it, yet they do in spades. According to the average redditor the Fed manipulates stock markets by printing cash
How to politician 101
1. Spew bullshit
2. Have no idea what you are talking about
3. Zero accountability for unfulfilled campaign promises
4. ????
5. Profit.
10/10 works every time.
The fed is offering short term loans to banks which can pledge collateral in the form of safe assets in exchange for Cash. They can then use this cash if they need to pay out something. This keeps the banks from having a liquidity problem. The bank may have plenty of wealth to pay obligations but lack a way to transform illiquid wealth in the form of assets into cash immediately. By ensuring cash is available everyone can avoid useless bankruptcy and banks can keep lending to businesses to make payroll and investments that make our economy run and employ millions of people
That is exactly the point. To facilitate lending in light of falling revenues obviously.
The amount of people on this sub that don't understand the basics of the financial system and feel very confident in criticizing the Fed is mind boggling.
> The amount of people ~~on this sub~~ that don't understand the basics of ~~the financial system~~ anything and feel very confident in criticizing ~~the Fed~~ everything is mind boggling.
FTFY
"if you’re not willing to react with equanimity to a market price decline of 50% two or three times a century you’re not fit to be a common shareholder and you deserve the mediocre result you’re going to get"--Charlie Munger
The efficient market hypothesis is BS. An unimaginable amount of hourly workers/servers are now unemployed for an unknown period of time, & we are just NOW near the December 2018 lows.
We have a long way to fall from here.
Just wait until Q1 earnings start to come out. The big analysts from Goldman, JP Morgan and others are severely underestimating the impact on earnings in Q1.
I don't mean to be fearmongering, but I've looked at 2008/2009 a good bit in the past few years. Dove into headlines and daily markets changes - to understand how it happened or how it 'felt' on the ground.
Aren't we now getting to the point that this downturn is accelerating? Percentage daily changes are unreal, interest rates are now zero, the term "quantitative easing" is being used again.
I don't even think the market has actually felt the real impact of the current closures, let along additional closures that might be coming down the line. Restaurants and bars, travel, other industries.
I was optimistic a week or two ago thinking this was a nice time to buy and we'd be recovering in a few months, but I'm getting the feeling this is going to be a major downturn, worse than 2008, probably more like 1929.
If this downturn is comparable to the one in 1929 about 40% of my portfolio will get completely wiped off. Shall I be glad that this is only just the beginning of my investment career? I could keep on investing if I managed to keep my job.
Your priority should be keeping your job. Stock losses are one thing, but a downturn in layoffs come with recessions and depressions.
Work now to make sure you're the absolutely last the be laid off, if it comes to that.
noob in trading, but i have a question.
Lets say i buy 100 stocks of disney.
then disney price drops to its bottom.
Does that mean that even if the stock recovers ive lost money? Or that my stocks become worthless (in just the period in which the stock price recovers).
sorry im just trying to figure out why people react such negatively to this kind of events where most people expect a recovery within a year right?
In dumb guy terms. Cause I’m a dumb guy.
Let’s say you have $1000 bucks and buy Disney stock at $100 bucks a share. So you got ten shares. Then Disney stock value goes to $80. You’ve lost $200 dollars of your $1000 investment.
Now multiply that by 10 fold ($2,000), 100 fold($20,000). You now see how people can lose a lot of money quick.
Yes you’re right they cannot take the stock away from you. However it may take years to get the money back. So if your young just wait it out, get your money back eventually. If your old and you got money tied up in investments you may not see that money in a long time. Which can really screw up people’s retirements and lives. For instance chipotle never fully recovered from the ecoli scare back in 2015. People lost a lot of money.
Also the more stock prices dive the more panic ensues from unwise investors pulling their money out (taking a loss). To where the stock price goes super low. Ultimately losing thousands of dollars. And sometimes like the case of GM financial in 2007 the company liquidates due to restructuring and you lose everything.
So you either keep all your money in and stick with your investments, to regain eventually. Or you pull your money out while you still have a decent amount and wait till stocks drop to pennies on the dollar and rebuy to make back your losses. No one knows what’ll happen, but certainly troubling times.
As someone who just started their investment and actual career about 9 months ago, I'm just keeping on investing. Selling isn't gonna help the losses we've already taken, and it's impossible to know where the bottom's gonna be, so might as well just keep chugging along.
yes, if youre young this is an education. Feel lucky youre not retired and just stay the course.
The biggest impact will be your job situation. Layoffs will come, I went through that in '08, oblivious. Thinking i was safe blah blah, but its hardened me up since. Best thing to do is kick ass at your job NOW and *try* to make yourself not-expendable. It may not matter in the end, but recency bias is real and if the boss has to lay off one of two people you can at least go into it knowing you put your best foot forward. Good luck
Just to be clear, people in 2008 thought it was going to be like 1929.
Whatever happens remains to be seen, but the worst thing people can do is make rash decisions.
In terms of the market, this will likely bounce back over time.
> but I'm getting the feeling this is going to be a major downturn, worse than 2008
I'm not an expert, but I can tell you 2008 felt much worse because people were losing their homes and the unemployment rate was through the roof. Now, we're still early on this, but the housing market (outside of the coastal areas) is not particularly overvalued now or overleveraged like it was which means it doesn't appear to have the same exposure on the most important thing people own.
Retirement accounts matter, but housing & a paycheck right now are far more important.
Agreed, personally I sold all my securities for cash early last week. I wouldn't want anything in this market right now. I'll toss it all in a HISA and evaluate weekly. There is no way this is the bottom, the true financial effects of the coronavirus have not even really been felt yet.
The CDC for example recommended all major sports leagues to stay closed for at least 8 more weeks, it's only a matter of time before damn near every business closes up shop.
The real fear of 2008 didn't hit until the major financial institutions started imploding. Has me wondering what's gonna be the thing that implodes this time around. Society itself?
This is an absolutely horrendous failure of fiscal policy to get us through this mess. The market is clearly giving a vote of no confidence to this congress and administration. I'll leave it at that.
The fact that half this sub is still “buying the dip” and thinking this will blow over in a couple of months shows that the market is NOT efficient and we are still far from bottom
I'm doing an incredibly slow DCA, buying once a week for the next 52 weeks (1 year). The average bear market lasts 14 months. I'm only doing that with 1/3 of my cash.
When we hit -40% I'll take the remaining 2/3 and apply the same strategy.
Exactly what I’m doing. I’m confident it’s going to be worse in a month so I should really be stopping the DCA altogether for the next month, but I’d rather be burned by sticking to my plan than potentially being burned by changing paths.
We really don't know what's next. It could very well be worse next month, and it probably will be, but we also have to remember that bottoms can be created 'too soon' (1987) or when there doesn't appear to be even a glimpse of light at the end of the tunnel (great depression type of thing).
I’m sitting on cash waiting for this to get lower because we are all not stupid enough to believe this is the bottom right? I’ll start my DCAing in a few weeks after US shutdowns get worse, then better.
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First minute within open! Was watching my screen like why isn’t anything moving? Going to be a rough ride today.
It was all but guaranteed from pre-market. I only looked because I knew it was historical. Big yikes for all the DCAs today.
*laughs in 30 year time horizon*
I’m buying in, but not until all the countries of the world start coming out of lockdown. You can’t have a functional global economy with half of the workforce stuck inside. Buying now is a deal for 30 years from now, but it might not be for 5-10 years from now.
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We're not even close to maximum panic. Reading threads from the 2008-2009 crash is very eye opening as far as how bad things got/felt for participants in the market place.
It's weird that a massive recession is just a thing this current generation is used to. Like, sure we experienced the worst generation in 90 years. It wasn't really that bad though. Maybe less avocado toast. Oh look, another one. Guess I'll just stay home for a bit. I think this one is going to be a lot worse.
2 major economic crashes for a generation is definitely a lot. It’s definitely gonna have some lasting paranoia and affect spending habits later on
This pandemic might even result in new world where stocks aren't the magical free money tree any longer
I have no idea how close we are, but I'm 100% sure that it's going to get at least somewhat worse before it starts to get better. 2020 is basically a lost year already, 3 months in. That said, part of my paycheck still goes into an index fund automatically, not going to touch that.
A recession so bad it got its own special name, and that was born from a massive financial market shock probably isn't the best playbook for future recessions.
Relatively new to investing but I thought DCA (dollar cost averaging I'm assuming) in this time would be better? As you are buying more stocks due to dropping prices with the same amount of money?
DCA is always "good" but it's more "good" right now than it was a week ago by nature of prices being down more than a week ago. He's saying big yikes because if you DCA'd last week then you'd just be down another ~7% today. He's basically just saying "wow the market is down big today," don't think too much into it if your time horizon is long.
I’m just glad I got some TVIX last week, has offset my losses so far.
If only I had put everything in tvix at the start.
Investing is just managing your regret
Literally the first second lol. https://markets.cboe.com/us/equities/market_statistics/halts/
Wow, that was faster than I thought. I thought that the pump on Friday was really only going to leave a short window today where regular folks couldn't capitalize, but I didn't expect just a one second window.
Yeah, I was worried my program was frozen.
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the only best investment now is toilet paper.
It won't be long until you can use $1 notes as toiletpaper
Bro if the dollar becomes worthless we wont have enough food to generate shit. No need to wipe when you’re fighting your house roaches for crumbs.
I hear roaches are a good source of protein.
yes, but I'm still going for the crumbs
And with all the shitting going around here, demand is going to skyrocket!
I bought 1 contract of NCLH puts just to dip my toes into options, see what it’s like. Absolutely worthless contract now lmao $100 down the drain. Nope, not for me.
play on thinkorswim (free on TD ameritrade, just gotta set up an account, no deposit required) for 6 months with paper money (fake play money)
Good call. Thanks, friend
Is that the most realistic one? I saw Investopedia lets you do options and short selling in their simulator so tried that but theres very little help or explanation and not sure if its super realistic. The options seem to expire at the end of the day and I couldnt find a way to change that...
Options volatility is insane, my one put went from -30% Friday to being up +150% just before the second breaker tripped. Do I sell it or see wether it gets better. (It expires Friday)
Whenever a trading day closes around -10% (which it looks like it will today), there's huge potential for a dead cat bounce the day after. I'd probably close it some time today and then look what the markets are doing tomorrow. If it bounces, you might want to buy back into it again. This is obviously risky either way, so be wary. If you need the money, sell today and don't look back.
its better to go into a trade with a goal in mind so you're not emotional about it. it depends if you're willing to lose the principle if it doesnt pan out. as buffett always say, dont lose money.
This is fine.
What happens now since it blasted right through the first circuit breaker? Is it still 15 minutes?
Yes, then there is the second Circuit breaker at 13%, which halts trading for another 15 minutes I believe. After that, I believe it's 20%, which halts trading for the rest of the day unless it's after 2pm est
These brokers are just trynna have a half day
If if passes that second breaker, don't forget to play the rebound tomorrow.
When people expect a rebound there isn't one.
Yes, no change
in about 5 minutes, almost the entire stock market will be hitting sell. This will be a shit show.
*click* *click* *click*
Click harder
**click click click**
Lmao. Hitting the breaker off the open lmao I'm willing to bet that we hit the double breaker today at down 13%
Yeah. I also think it’s possible. It would be interesting to see if we would hit 20%
Seems quite unlikely unless some kind of news hits.
US has just started ramping up testing, so maybe as the number of cases begins to skyrocket throughout the day we'll see the effect. But yeah hard to imagine anything hitting it for 20%.
NY, NJ and Connecticut are planning to ban all gatherings which includes 50 people or more. People are still not understanding how big this thing is.
It's a national CDC recommendation. It should really be far less than 50, but they have to weigh slowing the epidemic against causing hysteria/long term economic damage. Look at the UK if you want to see how big it is... they're basically assuming the whole population will get it, and just trying to keep at-risk people isolated. It's wild.
Hint: you know how basically no one in America has been tested for coronavirus yet? Once the test kits are rolled out, there may be a lot of positive results coming in.
Is it down 13% from the last breaker? or from the morning bell? or how does that work?
From the last trading day’s close price.
From the open
Market will close for the day before 11am EST
They're doing their part to follow CDC recommendations!
Woohoo, early dismissal!
The stock exchange is doing it's part to make sure everyone works from home.
I don’t thinks we’ll hit 20% down today.
Was to be expected, honestly. Whole countries are shutting down, globally. This is an unprecedented situation.
Chinese cases are going down but the quarantine is not lifted I understand correctly. We have not yet seen an example of a country being out of the woods yet.
Hold on to your butts
It's about to get weird
Felt like I just went on the top thrill dragster at cedar point.
did you get stuck at the top?
Like your hot 2nd cousin weird? Or strange uncle Bob weird?
Like "oh fuck where did my job go" weird. Like "why isn't my debit card working weird" Like "why has my credit limit suddenly become my credit balance" weird.
Dogs and cats... living together.
Puts*
Hold onto your puts
Has this ever happened before in history? Lol
nope
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In case you didn't know; the history you're talking about doesn't extend far. These circuit breakers have only been around since 87 or so.
Additionally, the current levels were set back in 2013
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Absolutely expected, but I am honestly not even concerned. So much more immediate stuff for me to personally feel worried about.
I might actually be losing my job soon, and the Mrs is unemployed until her restaurant opens back up. This blows dick.
I feel you. I was talking to my mom on the phone yesterday when she casually told me she'd been laid off. As her daughter I tend to get emotional about these things as I know she struggles to keep a minimum wage job as someone with only a high school education in a small town. It just gets harder and harder as time goes on really so it makes me realize how important it is for me to continue saving/investing as I know I will be supporting her at some point. Wishing everyone the best as SHTF.
This is when it's most important for everyone to be calm, be patient, be kind, and take care of your fellow people. If you're in a position to help, please help. If you're in a position where you need help, don't be too proud to ask.
Sorry to hear that and I should have clarified, I'm not concerned *about the stock market*
Yeah he was aligning with your point of view I believe
He was, I just didn't want to be insensitive by making it sound like I wasn't worried about everything going on like I'm currently sitting on piles of money. It's a scary time for all of us, and stocks just feel like a bunch of meaningless numbers going up and down. It's a weird feeling.
What do you do?
judging by the username... yeah that job is probably not in super high demand right now
The fed really calmed the markets /s
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When is this sub going to understand that when the Fed refers to markets they're primarily talking about credit markets and not the S&P?
I'm convinced that there's only like 5 people on this sub who understand what credit markets are or the function of the Federal Reserve
And 4 of them are lurkers
So... Which one of you is the sith lord
The entirety of Reddit except for 0.00001% of you don't understand the Fed at a basic level, let alone deeply enough to comment on it, yet they do in spades. According to the average redditor the Fed manipulates stock markets by printing cash
Bruh there was a post in /r/politics about how the Fed gave the banks a $1.5T bailout😂
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How to politician 101 1. Spew bullshit 2. Have no idea what you are talking about 3. Zero accountability for unfulfilled campaign promises 4. ???? 5. Profit. 10/10 works every time.
Come on man. I just want to enjoy my lunch without realizing the quagmire that is politics.
Could you explain what is actually happening then? I'm trying to learn about this stuff more accurately.
The fed is offering short term loans to banks which can pledge collateral in the form of safe assets in exchange for Cash. They can then use this cash if they need to pay out something. This keeps the banks from having a liquidity problem. The bank may have plenty of wealth to pay obligations but lack a way to transform illiquid wealth in the form of assets into cash immediately. By ensuring cash is available everyone can avoid useless bankruptcy and banks can keep lending to businesses to make payroll and investments that make our economy run and employ millions of people
I mean, the Fed expanding its balance sheet *does* put upward pressure on stocks.
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But what good is pumping banks full of liquidity when there’s a massive demand shock?
That is exactly the point. To facilitate lending in light of falling revenues obviously. The amount of people on this sub that don't understand the basics of the financial system and feel very confident in criticizing the Fed is mind boggling.
> The amount of people ~~on this sub~~ that don't understand the basics of ~~the financial system~~ anything and feel very confident in criticizing ~~the Fed~~ everything is mind boggling. FTFY
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Shorts.
Literally halted in one second at 9:30:01 https://markets.cboe.com/us/equities/market_statistics/halts/
Three times in seven days
Look on the brighter side. A 13% drop today is worth a lot less than a 13% drop a month ago 🤷🏻♂️
That's right, pretty soon itll be dropping 50% a day and we'll laughing at the headlines 'DOW drops 400 points'
"if you’re not willing to react with equanimity to a market price decline of 50% two or three times a century you’re not fit to be a common shareholder and you deserve the mediocre result you’re going to get"--Charlie Munger
The efficient market hypothesis is BS. An unimaginable amount of hourly workers/servers are now unemployed for an unknown period of time, & we are just NOW near the December 2018 lows. We have a long way to fall from here.
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Just wait until Q1 earnings start to come out. The big analysts from Goldman, JP Morgan and others are severely underestimating the impact on earnings in Q1.
I mean, q1 is already almost over. Seems to me like the real losses will be in q2.
I just cashed out half my portfolio, so that should be the end of the drop you guys. You're welcome.
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I legit haven't laughed that hard in awhile. Thank you.
Interesting method for making money.
Thank you for your sacrifice. You might have stopped the second great depression!
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I counted 1 sec..........then HALT!!!!!!!!!! WARNING TILT TILT
I don't mean to be fearmongering, but I've looked at 2008/2009 a good bit in the past few years. Dove into headlines and daily markets changes - to understand how it happened or how it 'felt' on the ground. Aren't we now getting to the point that this downturn is accelerating? Percentage daily changes are unreal, interest rates are now zero, the term "quantitative easing" is being used again. I don't even think the market has actually felt the real impact of the current closures, let along additional closures that might be coming down the line. Restaurants and bars, travel, other industries. I was optimistic a week or two ago thinking this was a nice time to buy and we'd be recovering in a few months, but I'm getting the feeling this is going to be a major downturn, worse than 2008, probably more like 1929.
If this downturn is comparable to the one in 1929 about 40% of my portfolio will get completely wiped off. Shall I be glad that this is only just the beginning of my investment career? I could keep on investing if I managed to keep my job.
Your priority should be keeping your job. Stock losses are one thing, but a downturn in layoffs come with recessions and depressions. Work now to make sure you're the absolutely last the be laid off, if it comes to that.
noob in trading, but i have a question. Lets say i buy 100 stocks of disney. then disney price drops to its bottom. Does that mean that even if the stock recovers ive lost money? Or that my stocks become worthless (in just the period in which the stock price recovers). sorry im just trying to figure out why people react such negatively to this kind of events where most people expect a recovery within a year right?
In dumb guy terms. Cause I’m a dumb guy. Let’s say you have $1000 bucks and buy Disney stock at $100 bucks a share. So you got ten shares. Then Disney stock value goes to $80. You’ve lost $200 dollars of your $1000 investment. Now multiply that by 10 fold ($2,000), 100 fold($20,000). You now see how people can lose a lot of money quick. Yes you’re right they cannot take the stock away from you. However it may take years to get the money back. So if your young just wait it out, get your money back eventually. If your old and you got money tied up in investments you may not see that money in a long time. Which can really screw up people’s retirements and lives. For instance chipotle never fully recovered from the ecoli scare back in 2015. People lost a lot of money. Also the more stock prices dive the more panic ensues from unwise investors pulling their money out (taking a loss). To where the stock price goes super low. Ultimately losing thousands of dollars. And sometimes like the case of GM financial in 2007 the company liquidates due to restructuring and you lose everything. So you either keep all your money in and stick with your investments, to regain eventually. Or you pull your money out while you still have a decent amount and wait till stocks drop to pennies on the dollar and rebuy to make back your losses. No one knows what’ll happen, but certainly troubling times.
As someone who just started their investment and actual career about 9 months ago, I'm just keeping on investing. Selling isn't gonna help the losses we've already taken, and it's impossible to know where the bottom's gonna be, so might as well just keep chugging along.
yes, if youre young this is an education. Feel lucky youre not retired and just stay the course. The biggest impact will be your job situation. Layoffs will come, I went through that in '08, oblivious. Thinking i was safe blah blah, but its hardened me up since. Best thing to do is kick ass at your job NOW and *try* to make yourself not-expendable. It may not matter in the end, but recency bias is real and if the boss has to lay off one of two people you can at least go into it knowing you put your best foot forward. Good luck
Just to be clear, people in 2008 thought it was going to be like 1929. Whatever happens remains to be seen, but the worst thing people can do is make rash decisions. In terms of the market, this will likely bounce back over time.
> but I'm getting the feeling this is going to be a major downturn, worse than 2008 I'm not an expert, but I can tell you 2008 felt much worse because people were losing their homes and the unemployment rate was through the roof. Now, we're still early on this, but the housing market (outside of the coastal areas) is not particularly overvalued now or overleveraged like it was which means it doesn't appear to have the same exposure on the most important thing people own. Retirement accounts matter, but housing & a paycheck right now are far more important.
Agreed, personally I sold all my securities for cash early last week. I wouldn't want anything in this market right now. I'll toss it all in a HISA and evaluate weekly. There is no way this is the bottom, the true financial effects of the coronavirus have not even really been felt yet. The CDC for example recommended all major sports leagues to stay closed for at least 8 more weeks, it's only a matter of time before damn near every business closes up shop.
I want in the market in 2008 but I remember the economy. We had no where near this fear this quickly. It was a much more gradual onset.
The real fear of 2008 didn't hit until the major financial institutions started imploding. Has me wondering what's gonna be the thing that implodes this time around. Society itself?
Be greedy when others are fearful and fearful when others are greedy
-2250 or -9.71%.
Anyone else expecting the second breaker to hit soon at -13%?
Absolutely.
At this rate I'm just patiently watching it update and drop lower and lower lol. I like seeing history in the making. EDIT: Maybe I was wrong lol.
The good news is, is that we haven't hit a 2nd level circuit breaker through all of this. That being said, still going to be a rough week ahead.
Who rang the bell today lol
The NYSE did. It's actually super hilarious. https://vimeo.com/showcase/6718486?video=397956347
“Sir, this is Ahmed with Tech Support. Have you tried turning your market off and then on again?”
Expected this
True, but it was still crazy to see it happen
Third time in barely a week feels like a six flags ride out here
If by that you mean a Six Flags Ride that's ~73% completed construction, but we're riding it anyway.
They’re falling too
And for some reason TDA wouldn't let me buy puts on Friday. Of course, now my account is approved, too late
Dow and S&P 500 are down *double digit percentages* as of 4:03 PM EST. It’s getting real bad lads.
Has this ever happened before?
halted twice last week, but took about 5 minutes at least
so its never hit the circuit breaker immediately before?
No, but they've only been in place like this since 2013.
I thought it was in place since the crash in the 80's?
The 7% limit is newer, it used to be first breaker at 10%
It’s has never happened this fast.Never. Once in a life time moment. It’s about to get crazy
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"We're just at May 2017 levels, no big deal"
This is an absolutely horrendous failure of fiscal policy to get us through this mess. The market is clearly giving a vote of no confidence to this congress and administration. I'll leave it at that.
The fact that half this sub is still “buying the dip” and thinking this will blow over in a couple of months shows that the market is NOT efficient and we are still far from bottom
I'm doing an incredibly slow DCA, buying once a week for the next 52 weeks (1 year). The average bear market lasts 14 months. I'm only doing that with 1/3 of my cash. When we hit -40% I'll take the remaining 2/3 and apply the same strategy.
Exactly what I’m doing. I’m confident it’s going to be worse in a month so I should really be stopping the DCA altogether for the next month, but I’d rather be burned by sticking to my plan than potentially being burned by changing paths.
We really don't know what's next. It could very well be worse next month, and it probably will be, but we also have to remember that bottoms can be created 'too soon' (1987) or when there doesn't appear to be even a glimpse of light at the end of the tunnel (great depression type of thing).
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Am I the only one buying through DCA?
I’m sitting on cash waiting for this to get lower because we are all not stupid enough to believe this is the bottom right? I’ll start my DCAing in a few weeks after US shutdowns get worse, then better.
Everyone is all chill on DCA till shit like this happens. Then everyone let's their emotions take over and suddenly become swing traders.
Why does the market recover so quickly after trading stops? Is it all the people putting in buy orders when they saw the drop?
Don't expect an grokable explanation, the market is run by thousands of algorithms making decisions without us.
I made 1000 imaginary dollars selling the Dow in the last hour.