361–370 of 1001 posts
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When you think about it, the whole market sort of follows these arbitrary-seeming rules. The actual prices of stocks are constantly changing 24/7/365, but the market is only open from 9:30am-4:00pm on weekdays excluding holidays.
The exchange is open from 9:30am to 4:00pm, but you and I are free to trade amongst ourselves at midnight on a Friday if we'd like
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"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.
You don't minimize risk by reacting to daily market fluctuations. You minimize risk by choosing an asset allocation that allows you to ignore those fluctuations.
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I thought these circuit breakers actually existed to stop algo's from going haywire?
Seems like that kind of thing would be implemented on the algorithm side, not the market.
So, children of summer (there are many here who have only known the longest bull market in the last century), let me give you some free advice. If you're looking at this and wondering when to get in, to bargain hunt essentially, and you're asking yourself questions like "today? next week?", you need to step back and think again. Some points to consider: - If your time horizon is 10+ years out probably none of this ma…
>Bear markets are paved with the blood of optimists. I'm going to shamelessly borrow this.
So, children of summer (there are many here who have only known the longest bull market in the last century), let me give you some free advice. If you're looking at this and wondering when to get in, to bargain hunt essentially, and you're asking yourself questions like "today? next week?", you need to step back and think again. Some points to consider: - If your time horizon is 10+ years out probably none of this ma…
>Bear markets are paved with the blood of optimists. I'm going to shamelessly borrow this.
It did the trick. Everyone is talking about it and my friends are buying.
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?
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.
Since I started investing in 2012, I've only ever triggered a rebalance through putting in more cash, but I'm making a list of stocks I plan to buy if my portfolio goes outside that bound.
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I thought these circuit breakers actually existed to stop algo's from going haywire?
They have existed since the crash of 1929. There were no algorithms in place then. The goal was just to force human traders caught up in the moment to take a break and stop panicking. I assume they have been tweaked since 1929, but they started with the crash back then. Edit: someone else is claiming 1987 as the start. My memory says 1929. If this matters do your own research.
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Why was or is the market in need of a correction? What is your evidence for that statement?
Take this with a train of salt because I’m not an economist, but one of the most often touted general points of the need for a correction is the cyclically adjusted price to earnings ratio being elevated [1]. In other words, stocks are more “expensive” and thus ripe for a correction https://www.multpl.com/shiller-pe
Nice Freudian slip.