Stock Market

[YosemiteSam]

The VIX is higher now (67) than it was during the 2008 crash. (59)

I wouldn't even consider re-investing right now. You've got to wait till for the market to stabilize before you start buying again. (and the VIX to drop from this crazy high)

 

[shabazz]

Usually the people who panic and sell when stocks decline (even severely) are the people who cannot afford to lose their investment rather than the seasoned investors.

Seasoned investors wait out declines and/or take advantage of panic sellers.

People who cannot afford to lose their investment are people who should not be investing in the stock market to begin with.

EXACTLY!

 

[Proof]

Usually the people who panic and sell when stocks decline (even severely) are the people who cannot afford to lose their investment rather than the seasoned investors.

Seasoned investors wait out declines and/or take advantage of panic sellers.

People who cannot afford to lose their investment are people who should not be investing in the stock market to begin with.

man. during the 08 crash, i was young and flush with expendable income and had roughly 100k in the market. obviously i knew that conventional wisdom (and history) says not to sell during a crash, and that you only actualize your losses by selling, but after seeing half my portfolio wiped out and thinking this was an entirely new type of catastrophe i pulled everything out. my thinking was that the rules don't apply anymore, and this is uncharted territory and and i was terrified. so what did I do? grabbed my remaining 40k and decided to put it in the safest place i could.... real estate. I refinanced my home and a rental property and threw 20k at each. and then the housing market crashed lol. wamp wamp. still stings

 

[Rockport]

Bonds aren't the only option. Conservative Low risk funds, annuities ( that has never yielded less than 3%), etc.....and is there anyone who is invested in the stock market Not see it going back up

The market will rebound.........as it always has. I just bought 10k worth of light sweet crude at 30.2 per Barrel. (WTI).

I'm not alarmed one bit

I leave my investments in the hands of professionals.

 

[Reality]

man. during the 08 crash, i was young and flush with expendable income and had roughly 100k in the market. obviously i knew that conventional wisdom (and history) says not to sell during a crash, and that you only actualize your losses by selling, but after seeing half my portfolio wiped out and thinking this was an entirely new type of catastrophe i pulled everything out. my thinking was that the rules don't apply anymore, and this is uncharted territory and and i was terrified. so what did I do? grabbed my remaining 40k and decided to put it in the safest place i could.... real estate. I refinanced my home and a rental property and threw 20k at each. and then the housing market crashed lol. wamp wamp. still stings

Most people learn as you age that a lot of things in the world are intertwined together in more ways than you ever knew or imagined when you are young.

Sometimes the best strategy is to do nothing, but that's very counterintuitive, especially for impatient people, which is also why it's not usually the solution people choose when they are younger.

 

[YosemiteSam]

The fed is throwing a ton of money at the problem. I'm not sure what the outcome is. It sounds like (2) $500B influx, but then I"m hearing other stuff as to weekly.

While I'm sure this helps someone. I'm not sure (depending) how this is going to change things. (need more clear info as the details are sketchy right now)

The other thing is, that money is coming from somewhere. Where ever it's coming from is going to leave a big hole. While this might prop up the market in some way, it's going to create a vacuum elsewhere. What's that old saying. Rob from Peter to pay Paul? You're not necessarily improving the overall situation, you're just moving where the problem is.

I suspect, this will have some impact. It already has, but the market seems to be sliding again after it's initial bump from the announcement. It might be just allowing investors to buy out better than they would have.

They had better not do it to the point of driving prices higher. (which I wouldn't doubt for a second given this is an election year) That would be outright theft from the American people.

 

[YosemiteSam]

I leave my investments in the hands of professionals.

I don't trust the professionals. Especially when these brokerages make deals with companies they end up investing you in. Wall St has a long history of that garbage. Which is why I usually recommend funds for investors who do not understand the markets. Put the money in and just let it ride the ups and downs.

What I've recommended to my family was just go into index funds or similar. Then I tell them to never touch whats there, but if the market goes into a down turn, to move their new contributions into the money market or treasury bonds. Once the market bottoms out, reallocate those redirected investments back into the funds.

 

[Rockport]

I don't trust the professionals. Especially when these brokerages make deals with companies they end up investing you in. Wall St has a long history of that garbage. Which is why I usually recommend funds for investors who do not understand the markets. Put the money in and just let it ride the ups and downs.

What I've recommended to my family was just go into index funds or similar. Then I tell them to never touch whats there, but if the market goes into a down turn, to move their new contributions into the money market or treasury bonds. Once the market bottoms out, reallocate those redirected investments back into the funds.

I do. I certainly don't trust a layman family member who thinks they know everything about the stock market.

 

[Proof]

I do. I certainly don't trust a layman family member who thinks they know everything about the stock market.

lol super rude, Yeesh.

 

[Rockport]

lol super rude, Yeesh.

I'm too old to have any patience left for stupidity. Some internet troll trying to tell my how to handle my investments? That's rude. And also, I'm pretty sure this is the same guy that was promoting Bitcoin a year or so back.

 

[YosemiteSam]

I do. I certainly don't trust a layman family member who thinks they know everything about the stock market.

You're damned if you do and damned if you don't. For me it's like gambling. If you're going to gamble, play blackjack. That's your best odds to win. Your best odds are with index funds. They are much safer than single stocks and they mitigate risk across all stocks in the fund. Especially if it's an index fund like the Dow, S&P or Nasdaq. (Nasdaq being less safe since it's focus on tech stocks while the other two are large cap blue chip stocks across many sectors)

If that doesn't make sense, you should just avoid the market all together

 

[YosemiteSam]

I'm too old to have any patience left for stupidity. Some internet troll trying to tell my how to handle my investments? That's rude. And also, I'm pretty sure this is the same guy that was promoting Bitcoin a year or so back.

Are you talking about me? I certainly didn't suggest Bitcoin. I think Reality and I have been the strongest anti crypto-currency voices on this board.

I will admit that I'm a troll here. Hell, that's why my .sig says Super Troll.

EDIT: btw, I didn't suggest you do anything with your portfolio.

 

[Rockport]

Are you talking about me? I certainly didn't suggest Bitcoin. I think Reality and I have been the strongest anti crypto-currency voices on this board.

I will admit that I'm a troll here. Hell, that's why my .sig says Super Troll.

EDIT: btw, I didn't suggest you do anything with your portfolio.

I apologize for thinking it might have been you and kudos that it wasn't.

 

[Rockport]

You're damned if you do and damned if you don't. For me it's like gambling. If you're going to gamble, play blackjack. That's your best odds to win. Your best odds are with index funds. They are much safer than single stocks and they mitigate risk across all stocks in the fund. Especially if it's an index fund like the Dow, S&P or Nasdaq. (Nasdaq being less safe since it's focus on tech stocks while the other two are large cap blue chip stocks across many sectors)

If that doesn't make sense, you should just avoid the market all together

My portfolio has over 100 securites of all kinds including stocks, bonds, funds of all kinds, gold, real estate etc. Your recommendation to focus on index funds is very rudimentary and not the best advice whatsoever.

 

[YosemiteSam]

My portfolio has over 100 securites of all kinds including stocks, bonds, funds of all kinds, gold, real estate etc. Your recommendation to focus on index funds is very rudimentary and not the best advice whatsoever.

lol What do you live in a box? First, you say you don't know how to do this so you get a professional to do it for you. Then you make a negative judgement on an opinion on something you know nothing about. Then you fail to realize that some of the greatest investors of all time recommend almost the exact same strategy.

....and yet you call ME stupid.

 

[Rockport]

lol What do you live in a box? First, you say you don't know how to do this so you get a professional to do it for you. Then you make a negative judgement on an opinion on something you know nothing about. Then you fail to realize that some of the greatest investors of all time recommend almost the exact same strategy.

....and yet you call ME stupid.

I never said I don't know anything about the stock market. In fact I know quite a bit. One thing I know is I am nowhere near smart enough to make life altering decisions about the market and need professionals to do that for me.

 

[morasp]

The S&P 500 closed at 2480.72. That's back to July of 2017 levels.

 

[YosemiteSam]

The S&P 500 closed at 2480.72. That's back to July of 2017 levels.

Yep, that about sums it up. Brutal.

 

[shabazz]

Are you talking about me? I certainly didn't suggest Bitcoin. I think Reality and I have been the strongest anti crypto-currency voices on this board.

I will admit that I'm a troll here. Hell, that's why my .sig says Super Troll.

EDIT: btw, I didn't suggest you do anything with your portfolio.

Crap, I thought you were talking about me. I sold all my oil shares and bought up Bitcoin

 

[YosemiteSam]

Crap, I thought you were talking about me. I sold all my oil shares and bought up Bitcoin

I recommend you day-trade chiclets. You'll be RICH!