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Dow plunges 1000 points

cnbc.com

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Re: Dow plunges 1000 points

#21

Post by lorenzq »

dvfjsdhgfv wrote: post #18
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?

You don't want to buy your groceries when they're not on sale.

Re: Dow plunges 1000 points

#22

Post by branchless »

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…

Totally agreed. The run over the last 5 years is massive. A modest drop is hardly going to clean out most "investors".

Most people won't benefit from the crash because they have no savings to buy the dip.

What we need is jobs that pay and land prices that are not gouging productivity increases.

Re: Dow plunges 1000 points

#23

Post by ganeshkrishnan »

adventured wrote: post #10
ganeshkrishnan wrote: post #7

Earlier quoted context omitted.

Recessions are technically at the minimum 9 months, three quarters of negative growth Edit: it's two quarters as pointed out below

Recessions in the US are almost universally defined as being at least two consecutive quarters of economic contraction / negative GDP. https://www.investopedia.com/terms/r/recession.asp

Yes you are right.

Re: Dow plunges 1000 points

#25

Post by valuearb »

dvfjsdhgfv wrote: post #18
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?

Buffett had a good quote about it once that I can't find now, but essentially during most of your life you will be a net buyer of stocks. Only at the end, during your retirement, will you be a net seller and only then will you want high prices.

Until then, the less you pay for your stock purchases, the better your long term gains will be.

Re: Dow plunges 1000 points

#26

Post by t3po7re5 »

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…

There was a flash-crash that started around 3PM EST and recovered by 3:16

Re: Dow plunges 1000 points

#27

Post by gizmo385 »

valuearb wrote: post #16
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.

Seems unnecessarily reckless to put almost all of your net worth into a single stock.

Re: Dow plunges 1000 points

#28

Post by [deleted] »

tardo99 wrote: post #19
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.

[deleted]

Re: Dow plunges 1000 points

#29

Post by jannotti »

gizmo385 wrote: post #27
valuearb wrote: post #16

Earlier quoted context omitted.

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.

Seems unnecessarily reckless to put almost all of your net worth into a single stock.

True, but less so for BRK, because your money is in a single stock, but not a single business. (I understand there are still plenty of things that might make the BRK price change in a single direction despite all those disparate businesses.)

Re: Dow plunges 1000 points

#30

Post by hellogoodbyeeee »

gizmo385 wrote: post #27
valuearb wrote: post #16

Earlier quoted context omitted.

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.

Seems unnecessarily reckless to put almost all of your net worth into a single stock.

BRK.B is closer to a mutual fund than a "single stock"
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