Golden buying opportunity, if you have the cash, which thankfully I do.
I got out at 7% off peak. May start cautiously getting back in.
I’m optimistic that we’ll “only” have a couple quarters of flat or negative GDP growth, and then things improve. Meaning a short term hit to profits and some stressed balance sheets (corporate and personal) but no long term recession.
It turns out that Mr. dumped all of his planes and cars and some other stuff in his trading IRA just in time. I don’t think those will be screaming buys any time soon. We are still holding onto our biotechs in a taxable account and our 401(k) targeted retirement funds, and I keep adding to mine. Fingers crossed my job will survive the turmoil, and I will be able to add some nicely priced shares to my 401(k).
The problem is that employers are often slower to hire in a recovery than they are to fire in a downturn. Also, when a business goes out of business, it can be a lot slower for someone to start a new one that fills the same market and hires the same type of employees.
We’re in it for the long haul and haven’t even looked at our portfolio as we don’t plan to make any changes, certainly not in times of volatility. Crashes and corrections are to be expected and must be baked into your projections. If times like these make you queasy, the market is not for you. The best bet IMO is to do nothing and wait it out. The market always recovers, so you never win by pulling out. If you can’t sustain a long recovery time horizon, you may need to consider where/if you invest. You can always put your money under the mattress but even that strategy has drawbacks.
Cheer up. Like ‘29, ‘87, and ‘08, this temporary. Pour a martini and ignore the turmoil. Certainly don’t add to it with any ill-timed or knee-jerk reactions.
I expect tomorrow (Monday) to be a rough day for the stock market. The fed is trying to soften the blow by substantially reducing interest rates today–a Sunday.
The Fed blew it IMO.
Actually, I think the move contributed to it instead of softening the blow. Futures traded off after it was announced, after all.
Just remember the age old saying:
“What goes down, must come up.”
The Fed really isn’t trying to shore up markets. There’s more to it. Like the stability and liquidity of credit markets. Balance sheets and corporate workforce stability. Housing markets. Very important non headline stuff. We reallly really really don’t need those problems right now.
This will be turbulent and challenging for sure.
Remember the s and p 500 rose 150 percent in the past 11 years. If you missed the best 20 trading days of that timeframe your returns where less than half. Missed 40 and almost none. We don’t know when those days happen and it can be quicker than you can react or uncertainty of reentering creeps up.
Traders die broke is adage in the street.
You’ll hear everyone who went to cash and those who’ve been waiting for years. Ignore the noise.
Most investors are down less than last years move up. Still hurts but if you have a five year time frame and interest rates near zero. Money will return.
Well… My 21 year old entered the stock market last week and bought lots of 52 week lows with known solid companies with dividends… He will be in it for a long time and I am glad he had the chance.
We have our profit sharing plans and iras etc and our broker called to let us know their plan with emails etc. Unless your really sikilled and lucky history usually shows people getting burned by taking out and reentering and trying to time the market. If you have cash probably tomorrow might be a great time to enter or very soon. The correction was expected but not so volatile… We did put about 25% of our portfolio in a product that limits the bottom end decline a few weeks ago before the drop. Just forgot what it is called at the moment… That will at least soften this blow.
I expect by Fall things will look much better.
Yup. Easy come, easy go.
The bull is dead. Long live the bull! ?
Consumers are staying home out of necessity. What if some of them adapt well to the frugal lifestyle, and end up embracing it?
That would be good for the individual consumer, but potentially devastating for our consumption driven economy.
Is frugality a good thing or a bad thing?
Fortunately, we have $ in cash to be able to ride out the downturn and not get too panicky about our equities.
@privatebanker: While there is more to it, the Federal Reserve is trying to shore up markets. Long winded explanations aside, the Fed’s goal can be summed up in one word–stability.
My kid (26) bought last week, too. Nothing he said he can’t afford to lose at the moment.
This is in his own trading account - not his 401k at work.
I’m still sitting on my cash hoard until after next November.
Can anybody direct me to a source for really basic information regarding the Fed’s role in this? Probably a good time for me to understand it…My knowledge about economics, in general, is sorely lacking!
Khan Academy has some macroeconomics classes. Not sure if those are basic or more advanced.