Powell seems to be MIA - he is the new Fed Chair...he should grab a microphone and make himself known and be a somewhat calming force.
Cramer, the idiot, blames solely new investors - what a kook and a tool.
Deep State is truly working with the Soroses, Rothchild types and will continue to wreak havoc around Trump's tax cut timing...I see this continuing for a while.
Any thoughts out there and how to stop it?
the markets are worried about inflation...and the havoc it brings
But what you don't see in the MSM...but it's underneath and stinking is what is happening in the deep state.
I think many savvy traders are aware of what is happening..and they may be left or right...but they pay attention. And uncertainty...is not a good thing in the "M".
Gotta love it when stocks go on sale! I say it is just about time to BUY!
That was only the dow. There are other markets than simply the dow.
But, as a whole. Have the fundamentals really changed? We still have massive debt, that's increasing. Bonds are looking more attractive. Easy money at first, so it was easy to make some money. People still can't find[or look] jobs to pay back their student loans. Innovation and tech is/will replace 'menial' jobs every year. Throw in natural disasters left and right.
People are not heeding the words of Gordon Gekko:
“The public’s out there throwing darts at a board, sport. I don’t throw darts at a board – I bet on sure things.”
Gordon cheated with inside information, but he is right about the dart throwing. The little guys in the stock market should probably stick with the tried and true since the big guys can make the market go up and down all the time. For example, I bought some Chevron stock when price dropped this week. I am confident that Chevron is a sound company and its share price will increase over time.
Would it be a good idea to try to stop someone from throwing up when they're in the middle of doing it? It's a bit similar. Let the market finish tossing its cookies, sleep it off, and get back to work.
There is upwards of 8000 points on the Dow of pure vapor in the market, IMHO. That came from the free money (vapor paper) from the QE years of brocko and yellen. It is Dow value that is based on nothing substantial, and, like air in a water hose, has to be bled off.
If Powell were to follow suit, he would take the microphone and announce an interest rate cut just like brocko/yellen did every time the market tried to correct.
This is healthy. You only lose money if you sell. If you're about to retire and are risk-averse, go ahead and cut your losses. If you're 10 years or more from retirement, ride it out and you'll recoup after a while.
The Dow was in the 700’s back in the 70’s when I got in. Plenty of ups and downs but has always gone up over time. Hang in there.
The thing to remember is the stock market has occasional corrections, sometimes large ones, but it eventually rebounds to new highs. People who sell during the corrections usually regret it.
The DJ Ind Avg is still up 19% over December 2016.
Long term stock market growth is between 4% and 7% a year. With the current drops the Dow is still averaging 9% plus improvement over the last two years.
I hope the Fed looks at five and ten year averages and not one year changes in isolation of longer averages.
At least with these drops the stock market is entering more neutral territory as far as P/E values - neither a bull making a bubble (which it has been) nor a bear. Long term getting markets to look more at fundamentals than immediate expectations is a good thing.
The stock market is fickle.
When I had a mutual fund, I noticed a pattern — the market would drop about the time each month that my account was valued. After a while, I took that to be more than coincidence.
In the fwiw dept, if you didn’t sell, you had no loss.
5.56mm
I never stood why it recovered in 2008. The economy was poor and there wasn’t any recovery until recently. I would like to have the Fed audited to see if they have propped it up.
Retirees have gotten tired of earning nothing from interest while essentials have increased. More money from retirees has flowed into the market. In addition corporations have been squeezing workers and pouring the savings into stock buybacks. Also how much of the stock increases really just a decline in the value of the dollar?
I never thought it was wise Trump bragging about the stock market. It is too subject to manipulation. The deep state will do anything to destroy him.
Snowflakes and scoundrels
A few random thoughts.
*First don’t panic. The absolutely worst thing you can do in a down market is to sell. That just turns theoretical losses into real losses. The general rule is buy low and sell high. The smartest people back in the dark days of 2008- early 2009 were the ones who stayed calm and bought in when everyone else was running for the exit with their hair on fire.
*Investing in the stock market should be approached as a long term project. I will define long term here as being ten years or longer. If you have a long term investment horizon and can handle short and intermediate term volatility then you will be fine (probably).
*The best way to invest in stocks is through low cost index funds or near equivalent ETFs. Just buy one or maybe two super cheap index funds (I suggest the S&P 500 and a good international index fund) and set the dividends to auto-reinvest. That way, whether it’s a good year or bad, you are always guaranteed to beat the market. And long term the market does tend to go up. Index funds also have the advantage of giving you instant diversification and they keep your fees and expenses to a minimum. They are also usually very tax efficient. The most important thing is to leave your index funds alone and tune out the noise of short term movements in the market.
*Do not try to outsmart the market. Very few people are able to do it over the long term. And avoid frequent trading. The only people who make money doing that are the brokers. Actively managed mutual funds and hedge funds that aim to beat the index are a racket. Avoid them. Numerous studies have shown that they invariably fall short because the investors get killed by high fees and expenses, which compound the loss in earnings over time. Read pretty much anything by Jack Bogle for more information.
*For those who do not have a long term investment horizon or are by either choice or necessity conservative investors you will want to limit your exposure to the stock market because of its very high near and intermediate term volatility. Depending on your situation, if you can’t afford steep losses you will want to have between 25- no more than 50% in the market. If you are retired and not independently wealthy I would suggest not more than a third of your money in stocks. The rest should be in high quality bonds or a good bond mutual fund. Tax exempt bonds may make sense for those in the top couple of income tax brackets.
*Keep a strategic reserve for unexpected emergencies. You should have at least six months of essential living expenses in some form of cash or a near equivalent.
*I am also a fan of gold as a disaster insurance policy. In an SHTF scenario banks and the financial markets might be closed for a while. In that kind of situation paper money may lose value quickly. Gold is the ultimate form of emergency money. Don’t go crazy with it. Gold pays no interest or dividend. Think of it as a the financial equivalent to a catastrophic health insurance policy. If all goes well you will never need it. But if you do...
*Finally for those with a very low risk tolerance, which is to say you really can’t afford significant losses or you stay awake at night worrying about stuff like what’s been going on over the last couple of weeks, consider the Harry Browne Permanent Portfolio. It is a completely crazy portfolio construct that when I first heard about it I dismissed it as nuts. But it does actually work. Basically it is a 4x25% portfolio with one quarter in each of the following assets,stocks, long term government bonds, cash and gold. See here for more information...
https://wiki.earlyretirementextreme.com/w/index.php?title=Permanent_Portfolio#External_links
It’s only about 4%. No worries. It’s just a correction.
Stock market movements are primarily due to what stock traders do. You have to understand how institutional quants trade billions in options and futures. The actual stocks are small potatoes.
Walmart indicator and the 10 year bond yield answer a lot of things.
More sellers than buyers.
Sit tight, don’t panic, it will come back.
Cincy, am I to infer from your post that your handle is no longer valid?