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

[bigbill]

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.

I'm over 50 but I'm also single and make more than $75K MAGI so Roth was the best option, but MAGI again. I put $26K a year in the 401K.

[rallizes]

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.

still could happen

[mt2u77]

Originally Posted by joosttx

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

I second this. After years of traditional 401k contributions, it dawned on me that it's virtually impossible for tax rates in 20-30 years to be as low as they are right now. I'm going heavy on the Roth 401k at least until I reach a more balanced situation. Roth IRA to max if you qualify, too.

[kppolich]

good day to buy

[Tony T]

NYT: C.D.C. Tells Americans to Prepare for Coronavirus Outbreak

Clusters of infection are likely in American communities, health officials said.
Some lawmakers doubted the administration was prepared to handle a large-scale crisis.
“We cannot hermetically seal off the United States to a virus,” an official said.

[echappist]

How could people claim "efficient market" when there was the event yesterday?

I can understand how the release of the CDC info today "spooked" people into revising earning targets and such, but there was nothing of the sort yesterday.

It's not as if this thing just sneaked up on us, but it took a good 3-4 weeks, and quite a bit of time after Apple revised its forecast to people all at once decide that the future doesn't look good...

Granted, finance and econ always had this hand-waving aspect to it, but still...

[tuscanyswe]

Yesterday when the rise of the virus shot up in italy. It got my attention and i bet it got a lot of ppls attention. if it its in italy and numbers are climbing theres a good chance its everywhere in the west soon. Bit scary actually. I guess many thought so long before me but it got my attention now..

[echappist]

I have about 8 anti-viral masks left in the house, and a few more respirators. Guess it's time for me to troll everything pharmacy in town and get my hands on a few more...

[MattTuck]

Originally Posted by echappist

How could people claim "efficient market" when there was the event yesterday?

I can understand how the release of the CDC info today "spooked" people into revising earning targets and such, but there was nothing of the sort yesterday.

It's not as if this thing just sneaked up on us, but it took a good 3-4 weeks, and quite a bit of time after Apple revised its forecast to people all at once decide that the future doesn't look good...

Granted, finance and econ always had this hand-waving aspect to it, but still...

You are focusing on the wrong word in the phrase "efficient market". When you have governments and central banks around the world intervening in financial markets to prop up valuations, you are dealing with something that isn't really a market in the true sense. It is a distorted market, like the reflection you see in a fun house mirror. The difference now (why the market is dropping) is that other market participants are now out-voting the policy makers.

[Burnette]

Originally Posted by kppolich

good day to buy

It's a step in the right direction as prices are still high for stocks, it's good for the long term investors.

[seanile]

Originally Posted by echappist

I have about 8 anti-viral masks left in the house, and a few more respirators. Guess it's time for me to troll everything pharmacy in town and get my hands on a few more...

from what i've read, make sure the facemask meets ASTM F2100-11 Level 3 Sandards

[Tony T]

Dow plungers 879 - worst 2-day point decline (1,910) in history

[Bruce K]

I was talking with a friend tonight about all this. His company makes machinery using some parts sourced from China. 70% of sales go back to China with additional sales from support labor in setup, maintenance, and upgrades.

Parts inventory has dropped close to acceptable minimums with nothing on the way. Shipments of completed goods are going to a warehouse for storage with nothing leaving the US. Travel for support staff is temporarily terminated.

The financial threat to many companies may be more real than we imagined and the current selloff may have more evidence to back it up.

It’s going to be an interesting time ahead.

BK

[kppolich]

Originally Posted by Tony T

Dow plungers 879 - worst 2-day point decline (1,910) in history

Points mean nothing.

DOW worst 2-day percentage drop in two years

[Louis]

That can't be right - Commerce Secretary Wilbur Ross said in January that the virus would be good for the American economy.