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Dow Falls 2997 points worst drop since 1987 crash

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Re: Dow Falls 2997 points worst drop since 1987 crash

#51

Post by djannzjkzxn »

tathougies wrote: post #27
djannzjkzxn wrote: post #12

Earlier quoted context omitted.

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.

I agree completely. My advice to anyone who isn’t employed as a stock trader is to buy when you have investable cash. In particular my comment was disagreeing with the advice to “wait a little while longer.”

Re: Dow Falls 2997 points worst drop since 1987 crash

#52

Post by screye »

I am not well versed in the economics of depressions, but almost all the ones I know of were preceded by some monetary imbalance or the explosion of a bubble based on falsely propped up ownings.

1929 was stock being leveraged off mortgaged homes and loans, that was clearly no sustainable.

2000 was the dot com burst.

2008 was mass defaults on home loans.

Is there any reason why apart from slow business for 2 months due to corona and the oil war (that resulted from corona causing a loss in demand), the economy can't juts go back to being business as usual once this all passes over ?

Is there a particular kind of asset, the collapse of which will seal this drop as a proper depression ?

Re: Dow Falls 2997 points worst drop since 1987 crash

#53

Post by badfrog »

mgolawala wrote: post #11

To put it into perspective, the last time the market behaved like (multiple drops of this magnitude) this was 90 years ago, in 1929, and it was at the start of the Great Depression. Today was the second largest percentage drop for US Markets in history. Now is not a good time to sell your stock holdings (at least not anymore). This smells of a panic right now. I think a severe recession is all but guaranteed at this…

If you think recession is guaranteed, why not sell?

Re: Dow Falls 2997 points worst drop since 1987 crash

#54

Post by dllthomas »

zenlot wrote: post #15
skrowl wrote: post #2

This 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.

Worst advice ever. Do not try to buy the dip in this market. Most likely it will lead to loosing money.

It's clearly better advice than dumping in more than you can afford? ¯\_(ツ)_/¯

Re: Dow Falls 2997 points worst drop since 1987 crash

#56

Post by adrr »

SirensOfTitan wrote: post #25

I’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 thes…

Why catch a falling knife? I am actively shorting S&P to protect my other holdings. SPY is the largest ETF is now hard to borrow which is just crazy to think about.

Re: Dow Falls 2997 points worst drop since 1987 crash

#57

Post by tomerbd »

Hasz wrote: post #47
SirensOfTitan wrote: post #25

I’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 thes…

Absolutely. I'm 21 -- I have 30 to 40 years to weather this storm. For people of similar age, you could not ask for a shallower entry into the market, albeit a tumultuous one.

It's not so shallow, the stock market is still bubbly, these are the prices of mid 2017, when everyone said that the stock market is a bubble...

Re: Dow Falls 2997 points worst drop since 1987 crash

#58

Post by seanmcdirmid »

mgolawala wrote: post #11

To put it into perspective, the last time the market behaved like (multiple drops of this magnitude) this was 90 years ago, in 1929, and it was at the start of the Great Depression. Today was the second largest percentage drop for US Markets in history. Now is not a good time to sell your stock holdings (at least not anymore). This smells of a panic right now. I think a severe recession is all but guaranteed at this…

So about 2008? Placing this crash is difficult and will only be clear in hindsight.

Re: Dow Falls 2997 points worst drop since 1987 crash

#59

Post by [deleted] »

badfrog wrote: post #53
mgolawala wrote: post #11

To put it into perspective, the last time the market behaved like (multiple drops of this magnitude) this was 90 years ago, in 1929, and it was at the start of the Great Depression. Today was the second largest percentage drop for US Markets in history. Now is not a good time to sell your stock holdings (at least not anymore). This smells of a panic right now. I think a severe recession is all but guaranteed at this…

If you think recession is guaranteed, why not sell?

[deleted]

Re: Dow Falls 2997 points worst drop since 1987 crash

#60

Post by nodesocket »

whatshisface wrote: post #10

All of the return-seeking money that pushed up asset prices in the first place is still out there, because stock market crashes don't destroy money (they just redistribute it). I wonder who has it now, and I also wonder when it will end up back in the market.

Great point, all the "big boy" traders who have been raking in profits on put options, VIX volatility, and leveraged inverse etf's eventually will switch their trades to bull.

However, keep in mind, a market down 30% requires a 43% gain to break back even.

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