I moved $100K to cash on Friday.
I should've been more aggressive.
Dow Falls 2997 points worst drop since 1987 crash
81–90 of 499 posts
Re: Dow Falls 2997 points worst drop since 1987 crash
#82PSA: 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.
PSA: The Dow Jones is a very good proxy for the stock market as a whole. If it were not people would have stopped paying attention to it years ago.
Re: Dow Falls 2997 points worst drop since 1987 crash
#83Dumb question. Why can't they just turn off all stock markets for a month?
But what if I need money for food and rent but my emergency fund runs out? If I own stock but cannot sell it that would be a bad thing, right?
Re: Dow Falls 2997 points worst drop since 1987 crash
#84To 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?
That is opposite of what you should do. You would just be locking in losses (or greatly reduced profits). As long as you are reasonably sure you can hold your stocks for a few years then just hold on to them. Or better yet, go on buying spree and get cheap stocks.
Re: Dow Falls 2997 points worst drop since 1987 crash
#85Just 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…
I'm pretty sure banks aren't going to start folding. The Fed is ahead of the curve this time (or at least not nearly as far behind it as in 2008). They seem to be pretty serious about doing whatever is needed to keep things from falling apart.
I said I wouldn't be surprised, not I think they will.
For reference, I work at a bank. The opinion is my own. The problem has to do with a run on the bank.
All banks are currently reporting negative earnings. Most banks rely on credit, and revenue from said credit. If that breaks down (because people can’t pay). They collapse.
I think the fed can bail them out. I also think that requires printing money so inflation will be high.
Re: Dow Falls 2997 points worst drop since 1987 crash
#86Earlier quoted context omitted.
This is similar to 9/11 where politicians would act without thinking just to appear like they were doing something. Security theater was the norm for many years.
They've relaxed the no-liquids rule now! for hand sanitizer only.
I've had a bottle of hand sanitizer in my bag for years and they've never once said anything. Either their security is so bad they've never caught it, or they've always been lax about sanitizer.
Re: Dow Falls 2997 points worst drop since 1987 crash
#87I 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 du…
[deleted]
Re: Dow Falls 2997 points worst drop since 1987 crash
#88Earlier quoted context omitted.
This is similar to 9/11 where politicians would act without thinking just to appear like they were doing something. Security theater was the norm for many years.
They've relaxed the no-liquids rule now! for hand sanitizer only.
whew. Good thing isopropyl alcohol isn't explosive in vapor form or someone might make a bomb!
Re: Dow Falls 2997 points worst drop since 1987 crash
#89Dumb question. Why can't they just turn off all stock markets for a month?
That is sort of like turning off a heart rate monitor during a heart attack.
Re: Dow Falls 2997 points worst drop since 1987 crash
#90I'm a bit more optimistic about this crash - a significant portion is due to the (important) constraints on society - closing schools and restaurants. Meaning we can look forward to some pent up demand on the other side when those constraints are loosened. On the other hand, if the US goes into lockdown for a month or more, there's a significant chance that we could be returning to a world very unlike today. The mark…
I think there will be some pent up demand, but some parts of the economy don’t benefit from that —e.g. I’m not going to buy more lattes when things return to normal, I will just go back to my daily fix.