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

[Jeff N.]

...I should be good 'til I'm 120 or so.

[bigbill]

Originally Posted by Jeff N.

...I should be good 'til I'm 120 or so.

You should hang on to your bikes then.

[kookmyers]

So sad, I pulled out based on my emotions (violating rule #1) back in November when it reached 3000. Now, out of stubbornness, I can’t get back in until it drops below where I sold.

[Llewellyn]

Originally Posted by kookmyers

So sad, I pulled out based on my emotions (violating rule #1) back in November when it reached 3000. Now, out of stubbornness, I can’t get back in until it drops below where I sold.

Thereby violating rule # 2 (time in the market is more important than timing the market). Not sure which index you're referring to but if it doesn't drop to the level you sold at for another 10 years the you're going to feel like a goose.

[kookmyers]

Originally Posted by Llewellyn

Thereby violating rule # 2 (time in the market is more important than timing the market). Not sure which index you're referring to but if it doesn't drop to the level you sold at for another 10 years the you're going to feel like a goose.

You’re right.

[Elefantino]

The stock market is going like a freight train and yet economic inequality is at an all-time high.

The math doesn't equate.

[sitzmark]

Originally Posted by Elefantino

The stock market is going like a freight train and yet economic inequality is at an all-time high.

The math doesn't equate.

The two aren't (directly) linked ... until economic inequality reaches a tipping point where a large part of the population can't purchase "stuff". The market is buoyed by consumer confidence and America's penchant to spend. When that stops, so does forward momentum of the freight train and it begins to run in reverse.

Low unemployment drives spending. In the case of people in the lowest economic classes, everything they make. The same for middle income and more because of their ability to borrow. Those with large disposable incomes provide a double impact - big spending and money to invest in the market, which drives share prices higher. Not necessarily because the companies underpinning the market have fundamentals that warrant the share prices, but because people want to be onboard the train. As long as you board the train early, the chances that the train rolls farther backward than where you boarded are lower.

Debt is a wonderful thing. You can throw a hell of a party when you walk out of the bank. But it has to be paid back and if you can't... USA now crossing $1trillion/year deficit and $22trillion+ in accumulated debt. ($15T of debt is social security so old people can continue spending) Technically every American has ~$70,000 of debt they don't even think about. Of course not everyone pays taxes - on a household basis it's about $175,000 for the number of registered households. Not all households pay taxes ... yada. Most of it will likely be the responsibility of those in their 30's and 40's to figure out. Our gift to the younger generations. You're welcome!

[oldpotatoe]

Originally Posted by Burnette

I was going to wait until after new years to post a year end total, but yeah, it's been a helluva year for the stock market.

What makes it even more remarkable is the hurdles to overcome to get there. Trade war, Brexit, Iran/Saudi Arabia/Turkey/Hong Kong/North Korea, Syria, immigration........

I'm sure I'm not alone in having mixed feelings about the above..guess I'll just sit tight for the 'ride' and stop yelling at clouds. Try anyway...

[soulspinner]

Originally Posted by Elefantino

The stock market is going like a freight train and yet economic inequality is at an all-time high.

The math doesn't equate.

money doesn't go to the bottom no matter how good the market is when companies buy back shares instead of hiring good jobs. There is a plethora of amazon trucks with people making 18 an hour they used to make at a dept store. ymmv

[Burnette]

Originally Posted by Elefantino

The stock market is going like a freight train and yet economic inequality is at an all-time high.

The math doesn't equate.

The market isn't the cause of all ills nor is it the answer or vehicle to fix them.

To address the cultural, social, political and economic ills and the people responsible for making those better deserves it's own thread.

[Elefantino]

Originally Posted by soulspinner

money doesn't go to the bottom...

Song as old as time, essentially. Deuteronomy, Matthew and John all tell us that we'll always have the poor.

[Mzilliox]

Originally Posted by Elefantino

The stock market is going like a freight train and yet economic inequality is at an all-time high.

The math doesn't equate.

here is the math for you, the summary is: because the market is not a measure for the economy, its a measure of predicted success/profit for the companies being traded. futhermore, 84% of the market is owned by 10% of the people, and more than half of Americans are not in the market at all. so again, the rich get richer, while the rest of us fight over tiddly winks like tax breaks. there is a political bias, because we are human, but its about the economy

https://citizentruth.org/why-arent-d...d-the-economy/

[Jeff N.]

Originally Posted by bigbill

You should hang on to your bikes then.

I know there'll be a time when I can no longer throw a leg over the TT and go for a ride...thankfully, that day ain't today...all bikes go when that day comes.

[oldpotatoe]

because the market is not a measure for the economy, its a measure of predicted success/profit for the companies being traded. futhermore, 84% of the market is owned by 10% of the people, and more than half of Americans are not in the market at all

They aren't directly 'in the market', but how a public company is traded, a measure of their present and future success..many, many, many people are kinda 'in it'. Not only employees but also the many, many companies that are connected as suppliers..think Boeing...I found a web site that listed all 414 companies involved in designing, manufacturing and testing Boeing aircraft.

[echappist]

Originally Posted by likebikes

what's good for the djia is good for the country, and vice versa.

that's gotta be one of the most idiotic thing posted here, if only b/c DJIA is price weighted index based on the stock of 30 companies, and is no reflection of even large caps...

say, if boeing stock dips 10% (as it did about a month ago), it drags down the DJIA, despite the fact that large caps overall were doing well