Banks are our friends, the government is like our dad, the media is like our mom, let's hug them and meet the brave new world!!!
Dow Falls 2997 points worst drop since 1987 crash
21–30 of 499 posts
Re: Dow Falls 2997 points worst drop since 1987 crash
#22Trump threatened Powell's job in order to force him to reduce interest rate and start printing money [1]. Our economy is being micromanaged by Trump who is not an expert in monetory policy and only has disdain for experts of all kinds (virus/economy/climate). Trump says he is qualified to do that because his uncle went to MIT [2].
[1] https://www.nytimes.com/2020/03/14/business/economy/trump-po...
[2] https://www.washingtonpost.com/outlook/2020/03/12/truth-abou...
Re: Dow Falls 2997 points worst drop since 1987 crash
#23Housing needs to follow. For people looking to get into the market like me, these prices are a barrier.
Housing is unlikely to follow unless more old people die of covid than expected. Rates are so low and big money will be looking to diversify into alternate asset classes.
Re: Dow Falls 2997 points worst drop since 1987 crash
#24I'm quite surprised by this because it was my understanding that companies were doing us a favor by employing most people. That they were forestalling replacing us with robots by paying us near subsistence wages. I'm very confused. On the one hand I have all the things I've been reading in the papers about workers being superfluous. But yet on the other hand when I just look at the evidence, it seems like companies r…
Companies need consumers more than they need workers.
Re: Dow Falls 2997 points worst drop since 1987 crash
#25I’m buying S&P index every day at this point, trying to drive my average down without trying to find the bottom.
...with that being said, I feel really worried about American economic stability long term now. Governors are closing restaurants and businesses leaving tons of folks out of work while providing minimal safety net coverage. Even liberal states like New York are ignoring the downstream economic effects these closures will cause. If most Americans truly cannot afford a $500 surprise bill, we’re in for a very, very rough ride.
Re: Dow Falls 2997 points worst drop since 1987 crash
#26Just my 2 cents - Take your assets out of the market.
Until we (in the US) see a few senators, a justice or two and / or the VP/president/etc succumb to the disease we haven’t hit peak panic.
~50% of the workforce is about to be out of a job for a few weeks. A large portion of Restaurants are about to go bankrupt, daycares are about to go bankrupt. Houses are about to drop in price (no money, and elderly dying).
The reality is, this could be worse than the Great Depression. At least if we keep this up for any length of time. What we are doing right now is seizing the economy and if we close down everything, it’s going to be hard to start back up.
Governments are going to crumble because of this.
Long term (a year out) things should be improving. But IMO we have a long way to fall. I wouldn’t be surprised if banks start folding.
Re: Dow Falls 2997 points worst drop since 1987 crash
#27This probably isn't the bottom. Wait a little while longer and when things start picking back up, dump in as much as you can afford.
I don’t think it’s possible to tell the difference between volatility and things picking back up. Somebody trying to follow this advice might have bought on Friday when the market went up.
The market is likely to go much higher than friday in the coming decades.
Re: Dow Falls 2997 points worst drop since 1987 crash
#28By percentage, this isn't just the worst drop since the 1987 crash--the 1987 drop is the only worse drop. This is worse than any day in the Great Depression.
Re: Dow Falls 2997 points worst drop since 1987 crash
#29PSA: The Dow Jones industrial average is a terrible measure of the stock market. It tracks just 30 stocks, some which have an outsized influence on the measure. This is not to say the stock market is not in freefall, but there are much better indexes to track general market movement.
Today it correlated with the better indexes. DOW (-12.93%):
[1] S&P 500 (-11.98%) https://finance.yahoo.com/quote/%5EGSPC?p=^GSPC
[2] NASDAQ (-12.32%) https://finance.yahoo.com/quote/%5EIXIC?p=^IXIC
[3] Russel 2000 (-14.27%) https://finance.yahoo.com/quote/%5ERUT?p=^RUT
Re: Dow Falls 2997 points worst drop since 1987 crash
#30I'd say keep a close eye on the Coronavirus situation. If a vaccine is found and is effective, likely the market will calm down and hit the bottom. After that its about keeping the companies afloat until they can get their revenue back up again. Most likely the quantitative easing programs from the Fed will help in this regard.