None of this matters at all. The crisis is over. The markets will recover soon enough.
Translation: Trump is going to announce some action against China this evening and it has leaked.
Last week the markets surged over the reopening of the economy.
This week the markets run scared over the reopening of the economy.
Jeeze, investors... pick an emotion already, will ya?
Remember when down 300 or up 250 was a big deal? :)
Now it’s a quiet day!
My 2 cents’ worth... not as an investment advisor, but simply as someone playing the stock market continuously since college 30 years ago... the recent rally was irrational and unsustainable. The market was performing like investors were expecting a really quick economic recovery and just a modest hit to corporate earnings... when neither of those things seem very realistic at this point.
Let’s be really frank about where we’re at. We have certain regions, mostly “blue states,” that are in no particular hurry to get back to business. The modus operandi has moved from “flattening the curve” to the mentality that new covid19 infections and deaths can’t be tolerated. That’s a darned hard standard to meet.
Next, we have entire sectors of the economy (e.g., travel, entertainment, auto manufacturing, etc.) that are either totally shut down or shut down ~90%. We have certain legacy parts of the retail sector (e.g.., department stores and malls) that were *already* on life support now looking at total failure. We have an energy sector that is hit hard by low demand and very low prices.
In short, the market *should* be pricing in more of this bad news... and *should* be retesting the March 23 lows. What’s been keeping it up? Well, possibly all the liquidity that the Fed has been pumping into the economy has got to go somewhere. There’s an old saying though that in the short run, the stock market is a voting machine but in the long run it’s a weighing machine. Corporate earnings are either going to take a substantial hit for the next year or more or they’re not. The market has recently been betting on the latter, though the former looks more realistic to me. In short, Dow 18,000 looks more likely to me than Dow 28,000.
I went ahead and move more money from stock funds to bonds funds this weekend. Also pointed my weekly investment from stock to bond funds.
I will look at the conditions in June to see what I will do, then Oct again for that Fall/Winter season.
The Virus will determine how much risk I take.
I think the market has been compromised by the big time hedge fund managers and their computer watch dogs who sell to initiate down days and then buy back in to initiate up days. Tom Streyer became a billionaire as a hedge fund manager.
I’ve gone to a more aggressive (buying) posture since the lockdown began. Looking past election before doing anything different. If there’s one thing the DOW does over time, is go up. And this from someone who’s been in it since it was in the 700’s back in the 70’s.
Word is Buffet dumped all his airline stocks last week.
Fail to plan,Plan to fail.
In the weeds, time to re-eval ?
Need a sounding board, try Yahoo business or Bloomberg,there great doom and gloomers
Obviously a reaction to Biden’s scandal. s/
We need to see what happens in the next week or so as the country starts to open up.
Brace For A Monday Massacre: Buffett Liquidates All Airline Holdings As Berkshire Sees Another Leg Lower
I am not doing terrible at this point. I am down approx. 9%.
(probably just jinxed myself)
Rumor is Buffet will dump all of his Airline stocks on Monday