S&P 500 drops 7%, triggering 15-minute ‘circuit breaker’ trading halt

CNBC ^ | March 17, 2020 | Fred Imbert and Yun Li

[C19fan]

Stocks tumbled on Wednesday as the markets remained highly volatile with the government response to the coronavirus fallout still unfolding. A violent reversal in Treasury yields in response to a potential $1 trillion stimulus package helped to unnerve investors.

The S&P 500 fell 7% around 1 p.m. ET, triggering a marketwide “circuit breaker” trading halt while the Nasdaq Composite slid 6.3%. The Dow Jones Industrial Average dropped 1,660 points, or more than 7%. The circuit breaker halts trading across the U.S. exchanges for 15 minutes and is meant to ensure orderly market behavior. Wednesday market the fourth time in a week that a circuit breaker was triggered.

[srmanuel]

Plausible deniability....China doesn’t give a damn about losing a few people if the USA goes down the drain...

Beside they know Trump regardless won’t be in office forever...but achieve world dominance, they need to cut the USA off at it’s knees...

[montag813]

The scariest thing over the past 3 sessions is that GOLD has collapsed, and bond prices have dropped, indicating that there is fear even among the big wigs, who are dumping every asset to get cash.

"Margin call, gentlemen..."

[entropy12]

All depends on how long you can tie down your money in the stock market. If you can wait 3+ years, right now is a better time to buy than has been for 4 years in the past.
I am buying in 10 equal steps spread over a few weeks.

[C19fan]

I work for a bank that services mortgages. This will be treated as a disaster. The banks will offer forbearance plans. There will be no or limited payments for a period of time and the arrears will be added to the mortgage payment when things return to normal.

[Alberta's Child]

The whole purpose of dollar-cost averaging is to be buying constantly -- regardless of the price. That's because you don't know WHEN there will be an "upswing" or a "crash."

I posted my investment strategy here last week. In a nutshell, it's this: Buy methodically, sell strategically.

One of the biggest challenges with investing is that you have to be right TWICE -- when you buy and when you sell. If you dollar-cost average your way into an asset, you're eliminating the uncertainty about one side of that transaction. That means your "buy" price is fixed, so you can focus your efforts on looking for strategic opportunities to sell.

[C19fan]

Everyone wants cash.

[lgjhn23]

“....The gov’t is not telling us something about this virus....”
Exactly. They’re not telling the “unwashed masses” the whole truth. It’s either a full-blown bioweapon or it’s the biggest hoax foisted upon the world since the mighty Odongo. This is apparently NOT some naturally occurring virus. The government response is waaay over the top for something like that.
Putting on the good, old tin-foil hat once again: They KNOW exactly what it is because they engineered it right here in the good old USofA, and it was either stolen or sold to Chinese agents by the odongo/brennan shadow govt knowing full well they did not have the proper protocols to handle it. All done on purpose as the last ditch effort to bring down Trump, the world economy and the most of all, the American People. IF any of that has truth, those behind this need to be dealt with in a BIG WAY.

[Alberta's Child]

At least a residential tenant has access to all kinds of financial assistance.

It's the COMMERCIAL landlords with small business tenants who are facing the biggest disaster here.

I would not be shocked if most of the bars and restaurants in some areas don't even open again.

[Old Yeller]

Move all manufacturing back to the U.S.A. Eff China.

[babble-on]

Popular trade in Nashville has been buying up condo units and using them as Air-BnB rental units.

That business is now dead and those mortgages are now in danger.

[Old Yeller]

This is like being in one of those 1950’s end of the world movies. Except in this one the world commits suicide.

You could make an interesting Twilight Zone episode out of this.

[grey_whiskers]

Deutsch Bank I read has $60 trillion in derivatives.

[Magic Fingers]

You think the only thing China’s lost is a few people?

[grey_whiskers]

It is about time for mass executions of bankers.

That, or returning to the Gold Standard.

Fiat money is always debased.

Metal-based money degrades, too, but it usually takes longer.

[lodi90]

I work for a bank that services mortgages. This will be treated as a disaster. The banks will offer forbearance plans. There will be no or limited payments for a period of time and the arrears will be added to the mortgage payment when things return to normal.

---

Great points. This is not a back to business as usual after 15 days. We’ll be dealing with this for months and years. And when new home construction grinds to a halt the economy will take another massive hit.

[Old Yeller]

I despise that woman.

[babble-on]

there were plenty of financial panics and crashes in the days of metal money, too.

[Old Yeller]

The scariest thing over the past 3 sessions is that GOLD has collapsed, and bond prices have dropped, indicating that there is fear even among the big wigs, who are dumping every asset to get cash.

But the way they're printing up money to hand out to everyone, won't cash be worthless too? The rich are probably buying up land, like China does in our country.

[lodi90]

Popular trade in Nashville has been buying up condo units and using them as Air-BnB rental units.

That business is now dead and those mortgages are now in danger.

---

Great point. The AirBnB small time property investors with multiple properties are another potential bubble to burst.

Although people might prefer staying in an AirBnB to hotels due to less exposure to germs.

[Huskrrrr]

I have 20% stocks 20% bonds (Fidelity/Vanguard) and 60% cash. I can wait it out.