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

[sitzmark]

Originally Posted by Mr. Pink

Oh man, I'll just drop back in for one more. Pr9mise it's the last.

Default to whom? We run the show. We can't default. We just print more money. Like the trillions in 08. No problem. Stop with the deficit scare.

Aha ... the print as much stock as you want and it has no impact on shareholder value/confidence approach. The dollar is based on nothing other than confidence in repayment. Only time is going to write the remainder of the story, so we shall see how it goes. Other nations in history thought their dominance was resolute. Maybe it will be for the US without good monetary policy ... and maybe it won’t. Whatever the outcome I’ll most likely be dead by then. Something for “the kids” to worry about.

[Tony T]

DOW up about 900 pts for the first 4 days of the week.
(Thanks to the Fed!)

[oldpotatoe]

Originally Posted by Tony T

DOW up about 900 pts for the first 4 days of the week.
(Thanks to the Fed!)

Except the ‘FED’ didn’t do anything, except a typical vague statement about essentially trying to prop up the economy in the face of the various trade war fronts/countries. So much for the FED being objective and not a bunch of hinge necks like the rest of this administration.

[likebikes]

Thanks to the FED, my retirement's back!

[Tony T]

Originally Posted by oldpotatoe

Except the ‘FED’ didn’t do anything, except a typical vague statement about essentially trying to prop up the economy in the face of the various trade war fronts/countries. So much for the FED being objective and not a bunch of hinge necks like the rest of this administration.

They added 900 DOW points in 3 days
(however, I agree with the rest of your statement)

[goonster]

Originally Posted by Mr. Pink

Default to whom? We run the show. We can't default. We just print more money. Like the trillions in 08. No problem. Stop with the deficit scare.

In the early 90's I read a line (author and publication sadly forgotten) that has stuck with me:

"There is one group of people the U.S. President worries about when he lies awake at night, and they are bond traders."

Most of us can't, or choose not to, remember a time when T-bills weren't healthy and inflation was something to worry about.

Inflation this low, for this long, despite low unemployment and multiple rounds of QE, defies conventional modern economic theory. Nobody knows how much further we can push it, or what happens when we've pushed too far.

[GregL]

Originally Posted by goonster

Inflation this low, for this long, despite low unemployment and multiple rounds of QE, defies conventional modern economic theory. Nobody knows how much further we can push it, or what happens when we've pushed too far.

^^^^This echoes my concerns. We're in a bubble of economic exuberance. I think it's peaked. Now I'm very interested/concerned about the pending downturn.

Greg

[Gsinill]

Originally Posted by kppolich

Man, the more I read this thread the happier I am. It feels good to be young, financially independent, diversified, and unable to spend the majority of my investment assets for another 30-35 years. Every time this thread gets bumped with an overreaction I just smile and think - who cares - you can't spend that money without taking a tax hit. Keep contributing the max and let it grow.

The stock market is an investment vehicle, with risk. Line up your investment allocation with your risk tolerance and stop taking financial advice from cycling forums.

TGIF

Still a few years to go myself before I'll tap into my retirement funds.
I find it interesting though how folks here accept or even justify stupid actions that make the market tank, just because it will recover at some point again.

There is always bad timing for someone...

[kppolich]

Originally Posted by Gsinill

Still a few years to go myself before I'll tap into my retirement funds.
I find it interesting though how folks here accept or even justify stupid actions that make the market tank, just because it will recover at some point again.

There is always bad timing for someone...

Your retirement is your responsibility. If you are near retirement and the timing is "bad" for you, it is your fault for being over allocated in high risk holdings i.e. 95% stocks and 5% bonds.

Adjust your holdings to match your risk tolerance and needs for retirement as you get closer and NEVER been 100% invested, always keep some money off the table to buy back in or to have for a rainy day.

Rule #1 of investing, pay attention.
-How old am I?
-Does my portfolio allocation match my risk tolerance?
-How much money do I need to retire?
-Am I in a good position today to retire if the market drops 10% due to speculation?

Rule #2 of investing, never be 100% in the game.

[Ozz]

Originally Posted by kppolich

Your retirement is your responsibility. If you are near retirement and the timing is "bad" for you, it is your fault for being over allocated in high risk holdings i.e. 95% stocks and 5% bonds.
Adjust your holdings to match your risk tolerance and needs for retirement as you get closer and NEVER been 100% invested, always keep some money off the table to buy back in or to have for a rainy day.

Rule #1 of investing, pay attention.
-How old am I?
-Does my portfolio allocation match my risk tolerance?
-How much money do I need to retire?
-Am I in a good position today to retire if the market drops 10% due to speculation?

Rule #2 of investing, never be 100% in the game.

Pretty much agree with what you say here, but don't forget most of us (healthy, active folks) are going to be live another 20-30 years past our retirement age....my wife is in the financial planning world, and she does her projections assuming the clients will live to be 100. Odds are they won't, but they also won't run out of money.....

[MattTuck]

It is hard to blame individuals unready for retirement when A) less than half of the population owns a stock (and so has only seen their wages stagnant for their working life, while the stock market has been at all time highs) and B) about half of the population would be unable to cover an unexpected $500 expense.

But, I agree, if you are in the market, the onus is on you to invest prudently. Unfortunately, most of the machinery surrounding the investment industry is aimed squarely at fleecing the retail investor.

[Gsinill]

Originally Posted by kppolich

Your retirement is your responsibility. If you are near retirement and the timing is "bad" for you, it is your fault for being over allocated in high risk holdings i.e. 95% stocks and 5% bonds.

Adjust your holdings to match your risk tolerance and needs for retirement as you get closer and NEVER been 100% invested, always keep some money off the table to buy back in or to have for a rainy day.

Rule #1 of investing, pay attention.
-How old am I?
-Does my portfolio allocation match my risk tolerance?
-How much money do I need to retire?
-Am I in a good position today to retire if the market drops 10% due to speculation?

Rule #2 of investing, never be 100% in the game.

This thread is not limited to how a plunging stock market impacts retirement.
Fact is that stupid actions by "someone" today, will impact the value of your portfolio tomorrow.

Hope the market had a nice upswing the day you need to cash in some stocks for a down payment on your next house

[oldpotatoe]

Originally Posted by Tony T

They added 900 DOW points in 3 days
(however, I agree with the rest of your statement)

‘They’ didn’t do anything and ‘they’ may not cut interest rates. Powell just doesn’t like ‘the phone call’...

[kppolich]

Originally Posted by Gsinill

This thread is not limited to how a plunging stock market impacts retirement.
Fact is that stupid actions by "someone" today, will impact the value of your portfolio tomorrow.

Hope the market had a nice upswing the day you need to cash in some stocks for a down payment on your next house

Your holdings are your responsibility and you should be prepared for the good and the bad depending on your current and future needs.

Blaming anyone but yourself for any financial troubles is lazy and shows how under prepared you are.

Additionally, if you are relying on the stock market to bank roll your purchase of a home (the biggest purchase you will ever make) you are doing it wrong.

[echappist]

Originally Posted by oldpotatoe

‘They’ didn’t do anything and ‘they’ may not cut interest rates. Powell just doesn’t like ‘the phone call’...

He does like to be a patient man though