OT - Dow plunges 1,175 - worst point decline in history

[azrider]

Originally Posted by Yoshi

https://www.ft.com/content/4be0d6d3-...4-0b726273ccac

Ugggh...........linked articles that require membership to read are the WORST....

I was always Bowser guy anyways

[notsew]

Fed helping any way it can to keep that stock market ticker green...

https://www.marketwatch.com/story/fe...nds-2020-06-15

[Tony T]

Sticks Climb After Fed Details Bond-Buying Plan

The Federal Reserve said on Monday that it would begin to buy debt issued by individual corporations based on a broad index of corporate bonds in the United States, a new step in the central bank’s efforts to keep credit flowing freely amid the coronavirus pandemic.

Officials voted unanimously to expand the so-called Secondary Market Corporate Credit Facility, which it unveiled in May. The program is meant to allow companies to continue borrowing money at a time of high stress on the financial system following the steep economic decline from the pandemic. Originally, the Fed did that by purchasing exchange traded funds, which trade like stocks but have broad exposure to corporate bonds.

Under the expansion approved on Monday, which Fed officials had foreshadowed in their creation of the program, the Fed will now “begin buying a broad and diversified portfolio of corporate bonds to support market liquidity and the availability of credit for large employers,” officials said in a news release. The purchases, they added, will “create a corporate bond portfolio that is based on a broad, diversified market index of U.S. corporate bonds.” Fed officials had not previously signaled that the individual corporate bond purchases would follow an index approach.

Even before buying a single bond, the Fed managed to achieve its main goal with its primary and secondary bond-buying programs: restarting the frozen corporate debt market. It first announced that it would set up the programs on March 23, and the mere promise of a backstop revived the market, allowing companies to issue debt to raise needed cash amid the coronavirus economic downturn.

Once they are fully up and running, the Fed’s programs will buy both newly issued debt on the primary market and debt that is already being traded on a secondary market. The programs were expanded on April 9 to include some junk bonds

.

[Tony T]

NAZDAQ approaching 11,000
AMZN $3,300, AAPL $400 ($2,800 split adjusted), TSLA $1,650
(Can’t help thinking of the 2000 dot-com bubble)

[mg2ride]

Originally Posted by Tony T

NAZDAQ approaching 11,000
AMZN $3,300, AAPL $400 ($2,800 split adjusted), TSLA $1,650
(Can’t help thinking of the 2000 dot-com bubble)

I passed up on about $75K gains in my 401K spending June reflecting on the dot-com bubble. F it at this point. It could drop 10% and would still have had a good year in the market.

Optimism up 1.

[froze]

I've had a great year, I just stayed the course and it all worked out in double digit gains.

[tv_vt]

I can't believe this spike since March. Totally crazy. What is driving that? It sure doesn't seem like it's being driven by reality.

[akelman]

Originally Posted by tv_vt

I can't believe this spike since March. Totally crazy. What is driving that? It sure doesn't seem like it's being driven by reality.

1) It turns out that companies don't need as many employees to make a profit. In fact, a lot of their bottom lines benefit enormously when they cut workforce.

2) There aren't many (any?) great places to park money at the moment. Given that, the market seems like a relatively good option, perhaps especially for institutional investors.

3) The federal government's Covid stimulus packages—of which I have many criticisms—did some good. Wall Street appears to be pretty sure that more federal money is on the way, and that's buoying optimism.

4) The market isn't the economy. But even if it were, many economists seem to believe that we're looking at a v-shaped rather than a u-shaped downturn.

5) Who even knows? The idea that the market reflects reality/is rational is utterly bonkers.

[froze]

Originally Posted by akelman

1) It turns out that companies don't need as many employees to make a profit. In fact, a lot of their bottom lines benefit enormously when they cut workforce.

2) There aren't many (any?) great places to park money at the moment. Given that, the market seems like a relatively good option, perhaps especially for institutional investors.

3) The federal government's Covid stimulus packages—of which I have many criticisms—did some good. Wall Street appears to be pretty sure that more federal money is on the way, and that's buoying optimism.

4) The market isn't the economy. But even if it were, many economists seem to believe that we're looking at a v-shaped rather than a u-shaped downturn.

5) Who even knows? The idea that the market reflects reality/is rational is utterly bonkers.

Always remember, the economists are guessing just as we are.

Also remember, if the stock market does take a major dump, and I'm not talking a correction, I'm talking about taking a dump! like a depression era dump, don't take your money out any thing you have in the market, just keep it, it won't be worth anything anyways, so just hold on to it, it could take 10 or 20 years for it to rebound back, but eventually it will, so just hold it.

[robertbb]

Which is all well and good if you've got 20 years to wait.

If you're near retirement....... you're SWOL.

Ye olde "Time in the market" vs "timing the market".

The truth is success requires both to be on point, your time of entry and time of exit is just as crucial as length of time in between.

[tv_vt]

Originally Posted by robertbb

Which is all well and good if you've got 20 years to wait.

If you're near retirement....... you're SWOL.

Huh?

[C40_guy]

Originally Posted by robertbb

The truth is success requires both to be on point, your time of entry and time of exit is just as crucial as length of time in between.

You're still talking about finances, right?



And not, um, surfing?

[Hellgate]

Originally Posted by tv_vt

I can't believe this spike since March. Totally crazy. What is driving that? It sure doesn't seem like it's being driven by reality.

The markets are forward looking and the indexes represent a tiny slice of the entire market.

I didn't move a single position and I'm up from pre-C19.

Think good companies, think forward, think long term.

[froze]

Originally Posted by robertbb

Which is all well and good if you've got 20 years to wait.

If you're near retirement....... you're SWOL.

Ye olde "Time in the market" vs "timing the market".

The truth is success requires both to be on point, your time of entry and time of exit is just as crucial as length of time in between.

You're SWOL if you take your money, which will be a penny on a 100 dollar bill!, thus you're better off leaving it and will to the next of kin.

[mbrtool]

I just googled SWOL and it has something to do about how one looks after lifting weights. What are you guys talking about?