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

[joosttx]

Originally Posted by robertbb

With interest rates so low, investors have been flocking to the stock market.

Buffet has always linked stocks to GDP, but currently stocks are on a totally different planet to GDP and it's fueled entirely by investors who aren't earning anything on their savings anymore and who feel stocks will continue to increase.

So much uncertainty around over and above a virus that has ground the worlds manufacturing hub to a halt: Brexit, Iran, climate change (bushfires here), US elections... and a massive asset bubble fueled by those very same low interest rates.

This is not going to end well. I shifted my superannuation account (Australian equivalent of 401k) to "defensive" mode (fixed interest) in the middle of last year and am very glad I did. It'd be down considerably by now had I done nothing.

The Australian economy's spluttering. We're technically already in a per-capita recession, but immigration numbers are propping things up artificially. I suspect we'll be in proper recession in the next quarter... bushfires and coronavirus already hitting us hard, wages have been stagnant for years and unemployment is trickling up slowly but steadily.

I'm 38. Plenty of time to get back in "growth" mode when things settle.

I bought some securities today.

[Llewellyn]

Originally Posted by bigbill

I've been sitting on cash, when it appears to bottom out, I'll buy. My IRA and 401 will be fine, I'm getting lots of stock.

That's probably about the worst approach to buying stocks. You can't time the market - it's been proven time and time again. You're better off buying regularly and hanging on for the ride.

[veloduffer]

Originally Posted by Llewellyn

That's probably about the worst approach to buying stocks. You can't time the market - it's been proven time and time again. You're better off buying regularly and hanging on for the ride.

Until it isn't. Each recession is different and that last recession had the longest recovery. Given the demographic challenges and low retirement savings(50% of Americans have no money saved), the next recovery could be even worse. There are so few things to cause the economy to rebound - $1 trillion fiscal deficit, 50% of state unemployment funds are not fully funded, interest rates at record lows, massive credit bubble (think future bankruptcies) and an economy of which 2/3 is consumer spending.

And not all recessions are V-shaped. After the Dot-com burst, the S&P 500 was negative for 3 consecutive years. When you need the money should be one's focus.

[Tony T]

Been there, done that. I wouldn’t be surprised to see at least a 500 point gain on the DOW tomorrow. I also wouldn’t be surprised to hear a soundbite from Powell tomorrow letting us know that the Fed is there to save us.

[joosttx]

Originally Posted by Llewellyn

That's probably about the worst approach to buying stocks. You can't time the market - it's been proven time and time again. You're better off buying regularly and hanging on for the ride.

It is sort of. I tend to have my triggers when to sell. And When I sell if there is nothing to buy which I have struggled I do pool money for a day like today. I felt today was a good time to buy some good securities so I spent about 1/2 money side money. And probably do the same tomorrow of the next day.

[MattTuck]

Originally Posted by Tony T

Been there, done that. I wouldn’t be surprised to see at least a 500 point gain on the DOW tomorrow. I also wouldn’t be surprised to hear a soundbite from Powell tomorrow letting us know that the Fed is there to save us.

Yes, we must not let the stock market drop below 3% of the all time highs before the fed needs to step in and reassure us the world isn't ending.

If the Fed has that much of a hair trigger, we should all be extremely skeptical of the robustness of this market.

[ORMojo]

Nothing to worry about, as our President tweeted earlier today: "Stock Market starting to look very good to me!"

(Please note, this is NOT a political comment, just a statement of fact about what the President said.)

[oldpotatoe]

Originally Posted by Tony T

Been there, done that. I wouldn’t be surprised to see at least a 500 point gain on the DOW tomorrow. I also wouldn’t be surprised to hear a soundbite from Powell tomorrow letting us know that the Fed is there to save us.

'Betting' on the future..what a hoot..Wait till this virus takes hold in the US..then go watch 'How It Ends'..gonna go buy ammunition...

Stock futures implied a positive open for the major averages, with the Dow Jones Industrial Average indicating a gain of 113 points at the open. This hardly makes up for Monday’s losses, however, which saw $1.7 trillion wiped from the global market with the Dow sliding 3.56%, or 1,031 points, and the S&P and NASDAQ shedding 3.35% and 3.71%, respectively. - Stevens

If the Fed has that much of a hair trigger, we should all be extremely skeptical of the robustness of this market.

The Fed doesn't have that hair trigger, but the guy in the big chair, does...$1TRILLION of annual national debt as far as the eye can see, in the 'robust' economy(robust for whom?)..

"Deficits don't matter"....

[bigbill]

Originally Posted by Llewellyn

That's probably about the worst approach to buying stocks. You can't time the market - it's been proven time and time again. You're better off buying regularly and hanging on for the ride.

I'm at least 5 years away from retiring. The vast majority of my money is in a IRA and I'm packing an employer 401K at the max contribution rate each month. I'm waiting for my mutual fund to hit a target price then I'll put some more cash into that. When I divorced 2018, I lost half the retirement accounts. I've recovered approximately half of that by living beneath my means.

My strategery is to continue to build up the 401K with the company matching 4%. I can't deduct any IRA contribution and can't do a Roth, so 401K is my best and only option.

[CNY rider]

For your consideration:

https://theirrelevantinvestor.com/20...u-buy-the-dip/

[oldpotatoe]

Originally Posted by CNY rider

For your consideration:

https://theirrelevantinvestor.com/20...u-buy-the-dip/

People making money commenting on other people's money and what they 'should' do with it...

Kinda like listening to a pro cyclist and what bike he 'loves'(sponsored)..BUT ask him what he rides when he isn't in his team kit..what bike he'll never sell.
Or the car racer..what kinda car does he own to go to the grocery?

[bigbill]

Originally Posted by oldpotatoe

People making money commenting on other people's money and what they 'should' do with it...

Kinda like listening to a pro cyclist and what bike he 'loves'(sponsored)..BUT ask him what he rides when he isn't in his team kit..what bike he'll never sell.
Or the car racer..what kinda car does he own to go to the grocery?

I watch Maria Bartiromo on Fox Business each morning while I have coffee. One of the things I appreciate is the disclosure of what stocks each advisor owns.

My mutual fund is just a dollar from my tripwire to invest. It lost 3% yesterday. So did my IRA.

[seanile]

Originally Posted by bigbill

My strategery is to continue to build up the 401K with the company matching 4%. I can't deduct any IRA contribution and can't do a Roth, so 401K is my best and only option.

does your company offer a Roth 401k option? you can do that to $19k and then a Traditional IRA to $6k and have a pretty good ratio there if you're worried about taxes later.

[joosttx]

Originally Posted by seanile

does your company offer a Roth 401k option? you can do that to $19k and then a Traditional IRA to $6k and have a pretty good ratio there if you're worried about taxes later.

this is good advice. If they don't it is good to set one up yourself.

[oldpotatoe]

It's early, but down about 300 after 2 hours.

Tuesday predicted the coronavirus is "going to go away" despite warnings from Democrats that his White House is asleep amid cresting fears in Washington that the outbreak could spark a pandemic.

"I think that's a problem that's going to go away,"