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Trading halted as U.S. stocks plummet

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Re: Trading halted as U.S. stocks plummet

#821

Post by chenster »

ganeshkrishnan wrote: post #820
Reedx wrote: post #778

Earlier quoted context omitted.

To help adopt a sober approach, it's worth watching this interview with Warren Buffett who shares his thinking re: market and Coronavirus. https://www.youtube.com/watch?v=JvEas_zZ4fM&t=21s One of the points he makes is that you should think about stocks as businesses. Instead of "I bought a stock" think "I bought a business". That puts you in a better frame of mind and perspective for the long term. i.e., You don't b…

This makes sense if you have huge quantity of cash where leverage is not an issue. With limited cash, you have to think very different from Warren.

I don't disagree. If you are in it for the long term, there's really nothing to worry about. The market eventually will bounce back. It always does.

Re: Trading halted as U.S. stocks plummet

#822

Post by chenster »

ttul wrote: post #625

I notice that there are many commenters here offering opinions on the future price of equities. Note that nobody has any idea where equity prices will be in one day, never mind one year or ten years' time. As a retail investor (i.e. not extremely rich), you can't gain any advantage over the market that overcomes your transaction costs. So relax. There's nothing to do here. If you're contributing to a retirement fund,…

> If you need to retire in the next five years, you should already have started moving out of equities.

Exactly. People are selling off and further worsen the crash.

Re: Trading halted as U.S. stocks plummet

#823

Post by walshemj »

missosoup wrote: post #741
swsieber wrote: post #716

Earlier quoted context omitted.

> robinhood It's easy to have no fees if your customers can't make transactions. To be less snarky, I'd avoid them if you're trying to time the markets.

For those not in the loop: it's been impossible to make transactions on a number of platforms including Robinhood due to the overwhelmingly high load causing those platforms to fail. A lot of people were basically locked out from trading.

I got a warning when I logged into Interactive Investor (UK) this morning and its still there now.

"Please be aware that due to exceptional market volatility, there may be situations in which it is difficult to obtain a price for your trade."

Will be interesting to see what effect the Budget statement on Wednesday

Re: Trading halted as U.S. stocks plummet

#824

Post by pedalpete »

It was not that long ago that the "experts" were saying the Boom-Bust Cycle had ended. https://www.bloomberg.com/news/articles/2020-01-22/bridgewat...

Buffett, Dalio and others have been preparing for this time for a while.

This is when money is made or lost. If you have the ability and the stomach for it. I'm not suggesting you buy today, I personally don't believe the worst is behind us. But an opportunity is coming.

Re: Trading halted as U.S. stocks plummet

#825

Post by dntbnmpls »

bytematic wrote: post #646
ttul wrote: post #625

I notice that there are many commenters here offering opinions on the future price of equities. Note that nobody has any idea where equity prices will be in one day, never mind one year or ten years' time. As a retail investor (i.e. not extremely rich), you can't gain any advantage over the market that overcomes your transaction costs. So relax. There's nothing to do here. If you're contributing to a retirement fund,…

Most people don't seem to understand that you don't pull all your retirement out at once, so the market going up or down doesn't really affect that

The problem is that nothing says markets will go up forever. Take japan's nikkei index. Dropped in the early 90s and is still down 50% 30 years later.

Choose the "all" to see the entire chart.

https://tradingeconomics.com/japan/stock-market

It isn't a law of nature that the S&P or Dow has to regain its losses in X number of years. S&P can drop and stay down for decades which can absolutely affect retirees.

Re: Trading halted as U.S. stocks plummet

#826

Post by ozi »

leakybit wrote: post #710
ttul wrote: post #625

I notice that there are many commenters here offering opinions on the future price of equities. Note that nobody has any idea where equity prices will be in one day, never mind one year or ten years' time. As a retail investor (i.e. not extremely rich), you can't gain any advantage over the market that overcomes your transaction costs. So relax. There's nothing to do here. If you're contributing to a retirement fund,…

Unless you use robinhood which has no transactions fees.

One does not simply "use" Robinhood on a day like today. Or the last 3 large down days since Coronavirus. System-wide failures abound.

Expect your orders to not execute as intended and money to be lost.

Re: Trading halted as U.S. stocks plummet

#827

Post by arsome »

ganeshkrishnan wrote: post #820
Reedx wrote: post #778

Earlier quoted context omitted.

To help adopt a sober approach, it's worth watching this interview with Warren Buffett who shares his thinking re: market and Coronavirus. https://www.youtube.com/watch?v=JvEas_zZ4fM&t=21s One of the points he makes is that you should think about stocks as businesses. Instead of "I bought a stock" think "I bought a business". That puts you in a better frame of mind and perspective for the long term. i.e., You don't b…

This makes sense if you have huge quantity of cash where leverage is not an issue. With limited cash, you have to think very different from Warren.

That may make sense if you're thinking about short term cash, but for longer term investments it still holds up.

Re: Trading halted as U.S. stocks plummet

#828

Post by Der_Einzige »

FabHK wrote: post #757
Der_Einzige wrote: post #678

Earlier quoted context omitted.

Than why do I keep getting richer on my puts? Maybe it's because there are actually ways to make money during a crisis...

Buying lottery tickets totally works, someone can claim every week. https://xkcd.com/1827/

It's a lottery ticket except when an event happens that you know more about than most investors.

In this case, investors are dealing with something they know nothing about - Epidemology.

When black swans happen, you can EASILY beat the market. We've known that Coronavirus was going to get this bad for months. We know the R0 rate. We know the CFR. Markets completely failed to "price coronavirus in"

Sometimes, you really can outperform the market but its only possible in situations where financial policy and monetary policy are unable to help. I see that supply chains are grinding to a halt and I know that this means the whole economy is going to be in pain.

But it's okay, keep on thinking that it's all like the lottery and see where you are in 6 months. You'll wish you were shorting the market.

Re: Trading halted as U.S. stocks plummet

#829

Post by kaycebasques »

kaycebasques wrote: post #650
ttul wrote: post #625

I notice that there are many commenters here offering opinions on the future price of equities. Note that nobody has any idea where equity prices will be in one day, never mind one year or ten years' time. As a retail investor (i.e. not extremely rich), you can't gain any advantage over the market that overcomes your transaction costs. So relax. There's nothing to do here. If you're contributing to a retirement fund,…

> Note that nobody has any idea where equity prices will be in one day, never mind one year or ten years' time. > So relax... keep buying lol

I guess my parent comment was too cheeky and internet-y but I'm making a serious point here. There's an unbelievable quantity of people here on HN who recite adages about the unknowability of the future (which is good advice!), and then proceed to give very specific recommendations on how to behave in the future, and those recommendations are packed with assumptions about what the future entails. I'm sorry to pick on ttul here but the cognitive dissonance is just astounding.

Re: Trading halted as U.S. stocks plummet

#830

Post by OJFord »

thekyle wrote: post #811
brazzy wrote: post #763

Earlier quoted context omitted.

But whether you start your retirement at a time the market is down a lot or up a lot can make a surprisingly big difference on how long your money lasts, if you don't adjust your spending.

Ideally, shouldn't someone planning to retire have already moved more of their money to bonds? Then they could just withdrawal from the bonds portion of the portfolio (which is likely up right now) while the stock market recovers.

However you frame it, there's always a time you start withdrawals. And if when you planned to do that coincides with a dip, of course you'll have second thoughts.
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