Posted on 03/13/2020 1:35:12 PM PDT by Kid Shelleen
Stocks ended sharply higher after a volatile session Friday as Wall Street rebounded from the deep losses suffered in the previous session, the worst since the Black Monday market crash in 1987.
The Dow Jones Industrial Average closed up 1,985 points, or 9.3%. The S&P 500 and Nasdaq also surged 9.3%. The averages posted their biggest one-day gains since October 2008.
(Excerpt) Read more at msn.com ...
Spot on.
When President Trump’s speech began in the late afternoon, the Dow rose approximately 1,200 points until 4:00 came around.
Yes.... that last ten minutes was pretty cool too.
I agree. It is impossible to say if the turn around is not, or 6 months from now. I am guessing the fear is going to get worse as we move along.
In the main story is a link to another story:
“Why did coronavirus plunge stocks into a bear market so fast? 5 things investors need to know”
The authors left out an elephant in the room, and that elephant is part of the “recent” past few years of greater volatility.
The authors left index funds out of any fault in the volatility. That I think is a big error and misses a major change that has taken place in equity markets.
From a 2019 WSJ article:
“Funds that track broad U.S. equity indexes hit $4.27 trillion in assets as of Aug. 31, according to research firm Morningstar Inc., giving them more money than stock-picking rivals for the first-ever monthly reporting period. Funds that try to beat the market had $4.25 trillion as of that date.”
And what are index funds? They are lemmings. Their managers do not get up in the morning and look what looks good, or bad in terms of individual stocks, or what looks rational or irrational in the market’s behavior. The managers of an index fund don’t make trade decisions. The purpose of an index fund is to just sit and go in whatever direction the market in an index goes. An index funds just as mathematical algorithms, watching what is happening in an actual index, that robot like set the index fund’s trades in motion. A slight edge of a movement down in the Dow Indutstrial index and every index fund based on that index must sell to keep itself proportional with the Dow index. So all Dow industrial index based index funds merely follow - pile on - a downward move. Lemmings.
But actual value and hedging and speculative trading by others sets the index moving, then the lemmings just follow and now the lemmings hold more of what must move than whoever starts the snowball rolling.
You've missed all those huge charts posted over and over again that could just as well be entitled "We're All Going to Die"?
As long as Trump is president, this is to be expected.
Well this virus is 6x more contagious than the flu and 10 times as deadly.
People who get really sick need respirators to survive. Many people who do survive (including young people) have permanent lung damage.
So if 100 million people got inflected we would have a huge problem.
But I never believed we would have that many people get sick because we are doing the right things and in a year or 2 their will be vaccines and effective treatments.
The economy is another issue, putting so much of our supply chain in China was a foolish move. Hopefully that will get corrected now.
tax Chick for the win!
I guess if you want to justify the panic inducing posts, that’s on you.
Did you know that in S Korea 96% of the people who were tested did not have Corona?
Early studies here show that 98 to 99% of the people who have been tested also do not have Corona?
I sure wouldn’t want to even be seen as close to being a Corona Cheerleader.
The losses are just on paper if you don’t need the money right away.
$oros would love to wreck this economy too
Deport the unrepentant NAZI collaborator
The press conference was brilliant. Surely some tech companies, oil companies and healthcare companies were ALL boosted from this. Brilliant that he had the foresight to do this.
I heard that toilet paper futures were in the crapper.
Breaking news… It’s not the first time that the stock market ever dropped and it won’t be the last. It will come back.
If you don’t know what to do do nothing. Stock market sage advice.
Thank you, I’ll be here all week.
I guess if you are playing volatility, and you have the stomach for it...
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