Trading halted as U.S. stocks plummet • Hacker News Board

Re: Trading halted as U.S. stocks plummet

#271

Post by allovernow » Mon, Mar 09, 2020, 5:38 PM UTC

wincent wrote: post #249

allovernow wrote: post #191

Earlier quoted context omitted.

No one will be able to time this. We don't even know if this is the start of a [global?] recession or depression. If you haven't already, put your retirement into bonds and hold on. Honestly it might be a good idea to grab some cash from the bank to keep at home - bank runs are not outside the realm of possibility, although we have credit cards and other internet based payment methods now so it's probably less of a c…

> If you haven't already, put your retirement into bonds and hold on. Are you advising to sell equities right after they've taken a beating? Sounds awfully close to "buy high, sell low".

If you look at the 100 year history of the DJIA, there's still a LOONG way for it to potentially drop.

It's about minimizing risk. Those with high risk tolerance I would advise to buy now, but be prepared to lose everything. If you're close to retirement you lose nothing by pulling out now.

Re: Trading halted as U.S. stocks plummet

#272

Post by justinmeiners » Mon, Mar 09, 2020, 5:38 PM UTC

jaequery wrote: post #248

This is creating one of the best buy opportunity ever. It's just sad that only the rich will benefit. The poor will just get poorer.

It's still less than a year of growth. Were you urgently buying a year ago?

Re: Trading halted as U.S. stocks plummet

#273

Post by walrus01 » Mon, Mar 09, 2020, 5:38 PM UTC

lm28469 wrote: post #254

savanaly wrote: post #208

Earlier quoted context omitted.

It's specifically because there are huge numbers of people watching this carefully and trying to do that that it is irrational on the margin to try to do so.

This, it's not 1940 anymore, the average Joe can setup an investment account in 5 min on his phone and heard his buddies talking about "buying the dips is a foolproof way to become a millionaire".

As an example I saw a lot of discussion about buying the drop of Boeing stock, about 1 month after the 737-max were grounded, expecting things to be back to normal and a quick rebound. People who bought it at 370 now have stock with about 230/share... And still dropping.

Re: Trading halted as U.S. stocks plummet

#274

Post by cglace » Mon, Mar 09, 2020, 5:38 PM UTC

A4ET8a8uTh0 wrote: post #231

eej71 wrote: post #205

Earlier quoted context omitted.

These rules are completely in keeping with the free market.

Would you care to elaborate? I would argue that guard rails and controlled falls are in opposition to actual free market. The qualifier 'completely' seems misplaced.

You would argue that rules set up by private institutions are in opposition to the free market?

Even anarcho-capitalism doesn't go that far.

Re: Trading halted as U.S. stocks plummet

#275

Post by ipnon » Mon, Mar 09, 2020, 5:39 PM UTC

aazaa wrote: post #266

> The cash equities market is subject to circuit breakers established by the New York Stock Exchange in the wake of the 1987 Black Monday crash. Trading will halt for 15 minutes if the S&P 500 falls 7% to 2,764.3 at any time before 3:25 p.m. in New York. ... That's less than a 1% drop from here. Right now, all eyes are on the Fed and the size of the bazooka they'll be deploying. Anything short of outright stock purch…

The circuit breaker was already triggered when the market opened this morning at 9:30 AM EST.

Re: Trading halted as U.S. stocks plummet

#276

Post by tomrod » Mon, Mar 09, 2020, 5:39 PM UTC

vearwhershuh wrote: post #222

In a world with zero-to-negative interest rates, unlimited margin available for the big players and a generation of boomers sold on the idea that stock appreciation (not dividends) is going to fund their retirement, what's the value of any company? Who knows? Until dividends are tax advantaged vs. capital gains, the insanity will continue. Leverage, huge risks and various shades of fraud, rather than responsible busi…

Exactly my thoughts.

Re: Trading halted as U.S. stocks plummet

#277

Post by danmaz74 » Mon, Mar 09, 2020, 5:39 PM UTC

walrus01 wrote: post #188

Serious question, is anyone watching this carefully and trying to determine when things will bottom out (perhaps in a week or two), to buy stocks, ETFs, and such at the bottom of the dip? Hindsight is 20:20 of course, but there's a number of equities that one could have purchased shortly after the 2008 financial crisis that proceeded to make significant gains between 2009 and 2019.

I was delaying investing in the stock market waiting for the next recession. My intention though isn't to try to time the bottom (which nobody can predict), but just to start buying when I think prices are "good enough".

Re: Trading halted as U.S. stocks plummet

#278

Post by tempsy » Mon, Mar 09, 2020, 5:39 PM UTC

Buy S&P puts as a hedge to save your account in times of extreme volatility.

I had 270 strike puts for April I bought on Friday for $6 that jumped to $15 today and got my account to break even even though the value of my stocks went down.

Re: Trading halted as U.S. stocks plummet

#279

Post by allovernow » Mon, Mar 09, 2020, 5:39 PM UTC

jamesjyu wrote: post #268

allovernow wrote: post #191

Earlier quoted context omitted.

No one will be able to time this. We don't even know if this is the start of a [global?] recession or depression. If you haven't already, put your retirement into bonds and hold on. Honestly it might be a good idea to grab some cash from the bank to keep at home - bank runs are not outside the realm of possibility, although we have credit cards and other internet based payment methods now so it's probably less of a c…

"No one will be able to time this" "put your retirement into bonds and hold on" facepalm

What? That's how you minimize risk because there's a good chance the markets will continue to slide. It's literally why the markets are down - because investors are pulling out and parking their cash in safer havens.

Re: Trading halted as U.S. stocks plummet

#280

Post by Vesuvium » Mon, Mar 09, 2020, 5:40 PM UTC

sjg007 wrote: post #224

totaldude87 wrote: post #184

To be honest , the market was in dire need for correction, BUT wonder where we will be when companies starts reporting their quarterly results and impact of that. So far this looked more like a correction than a precursor to the recession. To make things worse, OPEC dropped bombs which spread the wildfire further..

Why was or is the market in need of a correction? What is your evidence for that statement?

It's widely known state of things because of the current situation (low interest rates for very long time, etc.). Infact, many financial institutions and experts have been of the idea that a major stock crisis was around the corner for a while.

You could argue that most would have disagreed, but at the end 2018 many stock crisis indicators, models and statistics started to turn red and indicate that a crash was close.

2019 had a couple of close calls like the Turkish lira crisis, but there was never widespread panic to feed a worldwide crash. Now there is.