The Fed Will Save Us!
Posted on 03/02/2020 6:24:32 AM PST by Bon mots
After the worst week on Wall Street since 2008, investors are waking up to the all-too-familiar news of more coronavirus cases worldwide, and falling global stocks. The second U.S. death from the virus was reported on Sunday. Asian and European stocks started Monday positively — as central banks around the world sparked hopes of interest-rate cuts. But they moved into the red after an OECD report warned that the virus economic impact was “severe” and putting “the world economy at risk.” U.S. futures followed suit on a volatile morning.
(Excerpt) Read more at marketwatch.com ...
So I have a 401K but I was thinking of opening an Ameritrade or Schwab account and dropped a couple of K in there just to get a little “buy low” action, but the big question would be, when will rock bottom come? It doesn’t appear to be soon (days).
I bought MSFT March 22 calls at the bottom on Friday.
“but the big question would be, when will rock bottom come?”
I think there will some good days and some more correcting. I think once the virus hoopla fades or appears to stabilize buying will come back. My concern is all the co’s hurt by this airlines, travel, entertainment and supply chain folks said good are drying up soon as China is not making anything and co’s in the US are drawing down their inventories.
Going to be interesting.
Be prepared for a “dead cat bounce”, then a return to negative returns on an accelerating pace. People are such panicky creatures when it comes to thinking outside the box.
The medical profession will get a grip on this novel coronavirus problem, and with luck, the Lord willing and the cricks don’t rise, the nation and the world will struggle up from the ashes of this eruption and rebuild the supply chains once again, this time with an eye to permanence and reliability.
“” “’Investors cannot sit on the fence after coronavirus stock rout — it’s time to buy stocks, Bernstein says” “”
LOL. Nice try, Bernstein. Maybe it is time but let us think for ourselves.
My thoughts exactly.
My father’s take was that the true bottom in a market was indicated when it went, not up, but sideways for a time...like all the poison was expelled, nobody knew what to think or do anymore, and the market was looking for cues.
Never forget cash is a position, great time to take a stress free vacation.
I was thinking May or June, but I'm usually wrong about such things.
I am done buying this past Friday. I have one more buy in Moet Hennessy Louis Vuitton at 78.50, but I don’t think that’s going to happen.
“but the big question would be, when will rock bottom come?”
I have a 401K also. I move my 401K to safe havens also. I will not move it back to the main market until the supply issue looks like it be address. I think the big corporations will have to diversify their factory locations. A lot of this already started with the China Trade war last year.
The item: will China economy recover? It was a paper tiger before this.
You only invest what you can afford. I will take a couple of K also and buy low also after the false bounce. Wondering if the Market needs to drop another 3000 points before bottom. Predicting bottom is the hard part.
“dead cat bounce” I like that term. :)
Looking at averages, and there is a sudden drop of 20-30% on an otherwise sound stock, good time to buy. Even if it goes further down, still a good margin coming back.
The question to you is do you truly believe the indexes will NOT recover and then post new record highs.
If the answer is that they will not....don’t buy stocks.
If the answer is that they will...buy stocks.
One of the greatest investors of all times said he never tried to guess a market top nor a bottom, he was content on being in 20% from the bottom and out 20% from the top. I believe we have not seen the bottom here but I began buying on late Friday. I don’t think today’s opening bounce is a trend. Panic in financial markets from non financial matters (war, politics, plague etc) is quite difficult to gauge so I try to pick low beta stocks hopefully on sale. All IMHO.
Ask a friend or relative with a Schwab account to send you such a link if you do decide to go this route.
“when will rock bottom come?”
No one knows. You can’t time the market. But if you want to get close don’t worry about hitting the absolute bottom but look at momentum.
I could be wrong but I don’t see this as a repeat of 2008. In 2008 you had systemic problems. Here we have a temporary China problem that will remedy itself within a few months.
Having said that markets can overreact and we may have more to go. If so — a gift horse buying opportunity.
not yet...wait a tad bit more...
The Stock Market is a card game. You have to play to win.
Life is a gamble!
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