Dow plunges 1000 points • Hacker News Board

Re: Dow plunges 1000 points

#11

Post by cpncrunch » Mon, Feb 05, 2018, 8:29 PM UTC

nodesocket wrote: post #4

At one point down -1,600. I did a little buying today (BRK.B), this was margin calls, algo trading, and fear.

It's certainly a good idea to buy when stocks are undervalued. However at the moment they are likely still overvalued, and it's also quite early days in this current sell-off.

I just sold my entire portfolio (apart from retirement funds) earlier this morning, as we want to buy a house later in the year and don't want to get trapped if the stock market completely crashes.

Re: Dow plunges 1000 points

#12

Post by ry4n413 » Mon, Feb 05, 2018, 8:30 PM UTC

it's simple...

Higher than Expected Inflation = Faster than expected Rising Interest Rates = Cuts in Growth Outlook = Stocks go Down

Re: Dow plunges 1000 points

#13

Post by chatmasta » Mon, Feb 05, 2018, 8:31 PM UTC

ganeshkrishnan wrote: post #6

koolba wrote: post #2

Call me old fashioned but it's a nice change of pace to see news about traditional market indexes crashing rather just crypto currencies.

Different reasons. I suspect this is due to traders taking their yearly profits and then stampede set in. The volatility index has a very sudden spike at the end of the market https://finance.yahoo.com/chart/%5EVIX/

Traders “taking their yearly profits” does not affect the market like this; such events would already be priced into the market. The Dow is not a crypto exchange.

Re: Dow plunges 1000 points

#14

Post by valuearb » Mon, Feb 05, 2018, 8:32 PM UTC

I hate to be nitpicking about good news, but the S&P 500 is down less than 7% from it's peak, that's hardly a crash. Especially after gaining 26% over the previous year. And, after increasing over 90% the last 5 years.

Obviously, either way a decline in the stock market indexes is good news for almost everyone. I'm hoping for a real crash as I need to save lots more money, not just for my retirement but also for my kids college.

Re: Dow plunges 1000 points

#15

Post by nodesocket » Mon, Feb 05, 2018, 8:34 PM UTC

cpncrunch wrote: post #11

nodesocket wrote: post #4

At one point down -1,600. I did a little buying today (BRK.B), this was margin calls, algo trading, and fear.

It's certainly a good idea to buy when stocks are undervalued. However at the moment they are likely still overvalued, and it's also quite early days in this current sell-off. I just sold my entire portfolio (apart from retirement funds) earlier this morning, as we want to buy a house later in the year and don't want to get trapped if the stock market completely crashes.

Congratulations on the future house. We shall see about the market, but today's crash is POSSIBLY where can you can make money.

Re: Dow plunges 1000 points

#16

Post by valuearb » Mon, Feb 05, 2018, 8:35 PM UTC

nodesocket wrote: post #4

At one point down -1,600. I did a little buying today (BRK.B), this was margin calls, algo trading, and fear.

Nearly my entire net worth is in BRK.B, and I wouldn't buy at these prices. If you track it's average Price to Book value it's close to the highest ratio it's ever had. I believe it broke over 1.7 last week. When it hit it's all time high P/B ratio of 2.0 in the first internet bubble, buyers returns were very poor for the next decade.

I'm hoping for a much bigger sell-off so I can pick up some more below $150.

Re: Dow plunges 1000 points

#17

Post by KasianFranks » Mon, Feb 05, 2018, 8:35 PM UTC

Flight to quality into crypto is setting up.

Re: Dow plunges 1000 points

#18

Post by dvfjsdhgfv » Mon, Feb 05, 2018, 8:35 PM UTC

valuearb wrote: post #14

I hate to be nitpicking about good news, but the S&P 500 is down less than 7% from it's peak, that's hardly a crash. Especially after gaining 26% over the previous year. And, after increasing over 90% the last 5 years. Obviously, either way a decline in the stock market indexes is good news for almost everyone. I'm hoping for a real crash as I need to save lots more money, not just for my retirement but also for my k…

> Obviously, either way a decline in the stock market indexes is good news for almost everyone. I'm hoping for a real crash as I need to save lots more money, not just for my retirement but also for my kids college.

Could you elaborate?

Re: Dow plunges 1000 points

#19

Post by tardo99 » Mon, Feb 05, 2018, 8:35 PM UTC

valuearb wrote: post #14

I hate to be nitpicking about good news, but the S&P 500 is down less than 7% from it's peak, that's hardly a crash. Especially after gaining 26% over the previous year. And, after increasing over 90% the last 5 years. Obviously, either way a decline in the stock market indexes is good news for almost everyone. I'm hoping for a real crash as I need to save lots more money, not just for my retirement but also for my k…

Just wait.

Re: Dow plunges 1000 points

#20

Post by meri_dian » Mon, Feb 05, 2018, 8:36 PM UTC

A market is like a forest and a market crash is like a forest fire. In order for the market to grow and be healthy in the long term, a purge every now and then is necessary.