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

[C40_guy]

Originally Posted by seanile

Stage 2 in the books today

So...due to a fortunately timed rollover which required most holdings to be liquidated in my 401K before they rolled to my Roth IRA, I've got some cash on the sidelines...

What to buy, what to buy... go deeper on the tech stocks that have served well over the past couple of months (and years), consumer staples, gold bullion?

Assume 10 year horizon.

Also am helping an offspring manage some well timed cash availability. He's got a longer horizon...

[C40_guy]

Originally Posted by mtechnica

Next is the part when everyone realizes the emperor has no clothes.

Thanks for that visual. He is ugly enough in his 48 long suit and too long tie...

[Tony T]

Originally Posted by Vamoots58

recent Fed rate cut was symbolic. Lowering rates is effective when cost of funds (borrowing) prohibits economic growth and activity. If no one is shopping, traveling, spending because they are behind locked doors, lower rates will not spur a change in activity.

Political maybe, but not symbolic.

[sitzmark]

Originally Posted by Tony T

Political maybe, but not symbolic.

Maybe symbolic in sending a bold message that there will be no tolerance for a liquidity crisis in light of record exposures of corporate and sovereign debt that must be serviced and will likely need to be restructured if disrupted cash flows continue/expand. Telegraphing that every action possible will be taken to make sure no major player's faults will tip the domino that leads to systemic bankruptcies and layoffs.

Some major corporations have plenty of cash on hand to sustain near-term reduced consumer/B2B spending. Many don't. Anything that leads to major employee layoffs tips the US economy. We need us dolts to keep spending to prevent the economy from following the ROW.

50bps is effectually meaningless, but the tacit message is do not stop borrowing, borrowing, borrowing ... spending, spending, spending.

[Waldo62]

Originally Posted by Vamoots58

recent Fed rate cut was symbolic. Lowering rates is effective when cost of funds (borrowing) prohibits economic growth and activity. If no one is shopping, traveling, spending because they are behind locked doors, lower rates will not spur a change in activity.

It may spur refinancing activity...

[notsew]

Originally Posted by Waldo62

It may spur refinancing activity...

I went in today to refinance. But yields were already in the toilet when the fed cut the rate, so it didn't have a ton of impact, but yeah, 15 year fixed at 2.875 is looking pretty good.

[Vamoots58]

Originally Posted by Waldo62

It may spur refinancing activity...

given the pace of the rate drop (try) mortgage spreads have widened and as a result, available rates have not come down appreciably. Originators and particularly services are loosing their minds trying to figure out how to hedge their pipelines with 10yr @ 75bp!!!

[jimcav]

Originally Posted by C40_guy

So...due to a fortunately timed rollover which required most holdings to be liquidated in my 401K before they rolled to my Roth IRA, I've got some cash on the sidelines...

What to buy, what to buy... go deeper on the tech stocks that have served well over the past couple of months (and years), consumer staples, gold bullion?

Assume 10 year horizon.

Also am helping an offspring manage some well timed cash availability. He's got a longer horizon...

considering your time horizon, you could be active with some, and play ups and downs of all sorts of sectors and companies, or park it in things you believe in/will recover. RCL and CCL are just beaten down, but like Chipotle, will likely one day recover higher, b/c, after all, we grow ever closer to the WALL-E world. The energy sector is low. In 10 years, where will BA (Boeing) be. Speculation on COVID19 vaccines has made VIR and MRNA go stupidly up, and given difficulty with SARS and MERS vaccines, I'd be more likely to short them. Safer bet would be GILD, as their drug may work, and they have other revenue streams. If you are negative on the market--ie it will get worse before better, then you could do a gold ETF. Last crash (2009) l was able get some QQQ and DIA tracking stocks, which obviously did great, but I didn't have enough to invest to make that significant. No matter what, the uncertainty is going to create big swings on "news" or announcements, even if they aren't 100% accurate. Lots of sharper investors here, maybe someone will offer advice. Take mine for what it is worth (nothing) and good luck!

[vincenz]

Originally Posted by notsew

I went in today to refinance. But yields were already in the toilet when the fed cut the rate, so it didn't have a ton of impact, but yeah, 15 year fixed at 2.875 is looking pretty good.

I got that rate three and a half years ago and I was feeling good then. Do it, we all have enough bikes to ride anyway.

[Miller76]

Originally Posted by vincenz

I got that rate three and a half years ago and I was feeling good then. Do it, we all have enough bikes to ride anyway.

I’d anticipate at least and other 50bps of cuts and then a whole heap of homeowners will be rushing to take advantage of the newer lower refinance rates


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[CNY rider]

Originally Posted by Miller76

I’d anticipate at least and other 50bps of cuts and then a whole heap of homeowners will be rushing to take advantage of the newer lower refinance rates


Sent from my iPhone using Tapatalk

A mortgage is a long term loan and rates are much more correlated with longer term bond rates (the 10 year Treasury is a good one to follow.)

[oldpotatoe]

Originally Posted by Vamoots58

recent Fed rate cut was symbolic. Lowering rates is effective when cost of funds (borrowing) prohibits economic growth and activity. If no one is shopping, traveling, spending because they are behind locked doors, lower rates will not spur a change in activity.

Of course ..a TV, political moment meant for a 'basket' of people, none of whom own anything from Wall street, who have 1/2/3 low paying jobs..to give the impression of 'full employment'...

[pbarry]

Futures look grim.

[Llewellyn]

Aussie market down more than 7% today. Going to be good buying opportunities at some stage.

[Tony T]

10 yr < .5 %. 30 yr < 1%. Crude drops 25%