Down down over 1500 and falling! Investing |
- Down down over 1500 and falling!
- Banks are banning buying crypto on credit cards to save people like this
- XIV, the inverse volatility etf down over 60% in after hours trading.
- After days like today, it's good to read about Bob, the world's worst market timer who only invested at market peaks. But he bought and held.
- Buying opportunity my ass
- The media is the worst at explaining market movements
- Tuesday’s question for $XIV Holder - now that you have 2nd life
- If the S&P were to drop by like 10% today and essentially a recession were to begin, what would we call this bubble? (2001 dot-com, 2008 housing, etc.)
- Dow futures down 1,000 points Monday evening
- Credit Suisse Tumbles On Fears Of Massive XIV Loss
- I messed up (XIV)
- I was around for the Great Financial Collapse. Market Conditions were Eerily Similiar. Read On.
- Just to give some perspective here is the CNN Money page from March 13, 2000 (the first day of the dotcom crash)
- Why is everyone saying the stupidest thing you can do during drops is sell. If I would have sold some stuff by close today I would have avoided the 2% drop we're getting at market open tomorrow.
- Why would you purchase a specific Vanguard index fund over an EFT based on the same thing?
- Exclusive: U.S. consumer protection official puts Equifax probe on ice - sources
- Credit Suisse hit hard
- Eerie similarities between 1987 and the current fall
- XIV is in meltdown mode
- A third of the IBM global workforce will be “productively redeployed” in 2018
- Does anyone here advocate stocks over index funds?
- Stock sell off continues in Asia, Nikkei down 5%, Hong Kong 5.12%.
- Market Volatility and Why Today Is Okay
- VIX, XIV, SVXY, HVI termination?
| Down down over 1500 and falling! Posted: 05 Feb 2018 12:10 PM PST Interesting day today - lots of fear out there apparently that the stretched valuations aren't going to hold up. S&P down to negative for the year after starting off super hot. [link] [comments]  |
| Banks are banning buying crypto on credit cards to save people like this Posted: 05 Feb 2018 08:49 AM PST In light of the news we are seeing where several banks are no longer permitting their credit cards being used for anything crypto related, here is a classic example of why they are doing it:
https://www.reddit.com/r/Bitcoin/comments/7v5ydz/daily_discussion_february_04_2018/dtrtlkh/ I hope that guy does not take too much of a hit, but this does remind me of when the SEC started with the PDT rule back in 2001. Everybody is going to hate it, but its going to save a lot of people from a lot of pain in the long run! [link] [comments]  |
| XIV, the inverse volatility etf down over 60% in after hours trading. Posted: 05 Feb 2018 02:01 PM PST https://finance.yahoo.com/quote/XIV/ This is kind of a big deal. Going to wipe a lot of people out on its own. Discuss. For whatever it's worth, here is a good article detailing why this can be a big problem - https://www.themacrotourist.com/posts/2017/11/23/the-next-crisis/ And this is a good summary of what happened and other information related to ripple effects. Edit 5:55 pm: XIV is down past the threshold of an 80% 1-day drop. Look for a liquidation. If you were looking out for a black swan event, we may have just gotten it (or it may not be as bad as big of a deal as some have mentioned). [link] [comments]  |
| Posted: 05 Feb 2018 04:17 PM PST Here's the article: http://awealthofcommonsense.com/2014/02/worlds-worst-market-timer/ [link] [comments]  |
| Posted: 05 Feb 2018 10:11 PM PST A "buying opportunity" happens when the P/E ratio gets very attractive. Not when it's the third highest in history. Anyone who thinks they are "buying stocks on the cheap" is an idiot or someone too young to have witnessed an actual buying opportunity. At these valuation levels it's likely to return a big fat zero in real dollars over the next decade or so. S&P easily has another 40% to shed to be an actual buying opportunity. See ya below 1600. [link] [comments]  |
| The media is the worst at explaining market movements Posted: 05 Feb 2018 01:19 PM PST Thank you USA Today for providing a headline that is nothing but fearmongering. For context (something USA Today apparently ignores), using points as a barometer for moves up or down is irresponsible. The Dow dropped 4.60% today which wouldn't even rank in the top 20 of worst Dow days. Just to break the top 20, the Dow would've needed to drop 1,784 points (6.99%). Additionally, the worst day in regards to percent movement, 22.61% (Black Monday) would've equaled 5,770.28 points in today's market. [link] [comments]  |
| Tuesday’s question for $XIV Holder - now that you have 2nd life Posted: 06 Feb 2018 02:59 AM PST Overnight Credit Suisse decided not to terminate the XIV - instead halt trading of the product for "news pending". Their news needs to be spectacular- like the ECB gave them a $5-$10B line of credit overnight to defend the XIV product, else people will continue to short the underlying futures product and the bank will be on the hook for billions that they can't get from XIV shareholders. (XIV would have a negative NAV, but since this is an ETN the shareholders are not on the hook for anything under $0). $CS apparently has 5M shares of XIV per their last filing, and instead of just liquidating and taking their $500M loss they are playing a game of chicken hoping VIX falls back tomorrow to ~20 or so. If instead VIX closes tomorrow at ~80 then $CS will have lost several billion dollars and there will be a run on the bank. I would like some analysis of my thoughts by people who have actually read the XIV prospectus and can intelligently comment on my line of thought. I could certainly be wrong. To the average $XIV holder who thought that they would be sold out tomorrow at $4.22 - what are you going to do? If it opens around noon tomorrow with some BS news at say 60 will you buy or sell? [link] [comments]  |
| Posted: 05 Feb 2018 10:28 AM PST |
| Dow futures down 1,000 points Monday evening Posted: 05 Feb 2018 06:54 PM PST |
| Credit Suisse Tumbles On Fears Of Massive XIV Loss Posted: 05 Feb 2018 06:41 PM PST https://www.zerohedge.com/news/2018-02-05/credit-suisse-tumbles-fears-massive-xiv-loss "now that the ETN appears fated for termination, is suddenly a very big problem for Credit Suisse since according to the latest public filings, the Swiss bank owned 4.79 million units, or over $550 million, worth of XIV at yesterday's close of $115.55, and roughly $480 million less at today's after hours closing tick of $15.43." credit suisse -6% after hours [link] [comments]  |
| Posted: 05 Feb 2018 05:17 PM PST I saw XIV was down after hours and I bought. It kept falling and I kept buying. I got greedy. I checked on a chat room and another person was buying too. They were experienced in trading. It never crossed my mind that the underlying fund could go bust. It seems XIV has folded I am out $1,200 which is a disconcertingly large amount of my funds. I think God is teaching me a lesson. Is anyone else in this same boat? Was I the only one stupid enough to buy instead of sell? Is it worth holding out any hope of getting bailed out? I'm trying to mentally accept the loss. [link] [comments]  |
| I was around for the Great Financial Collapse. Market Conditions were Eerily Similiar. Read On. Posted: 06 Feb 2018 02:48 AM PST I hear the same arguments why this time its different. But in 2009 It was the same arguments deployed to say it was different than the dot com collapse. Here is what is eerily similar:
What was conspicious about trading in the GFC was how markets would open green, then go dramatically red by 10:30 am as ETFs rebalanced and algos traded. Also, the high daily variance in prices from algos and HFT. An equity would rebound 5% then drop 10%. Later, I learned that there would be a pop then massive drop because algos would close out their hedged short positions right before massive dumping. I got caught on the wrong side of the trade because I thought it was finally bottom. I'm sure others out there traded during the GFC. It was wild. The Fed finally stepped in. They sanctioned a trading desk whose mandate was solely to buy the fucking dip. I wonder if that desk is still around, now that QE has ended and volatility had been abnormally low for years. [link] [comments]  |
| Posted: 05 Feb 2018 11:53 PM PST http://money.cnn.com/2000/03/13/markets/markets_newyork/ You can then go forward and backwards in time and look at exactly what people were saying around that event which will then give some better perspective on how to handle this one. [link] [comments]  |
| Posted: 05 Feb 2018 07:19 PM PST |
| Why would you purchase a specific Vanguard index fund over an EFT based on the same thing? Posted: 06 Feb 2018 12:06 AM PST Hi all, sorry for the basic question, I just don't really understand, other than the index fund is a much older instrument? I've all my money in index funds and will continue to invest, I'm wondering if I should switch to EFTs so I can action things much quicker when necessary? Thank you [link] [comments]  |
| Exclusive: U.S. consumer protection official puts Equifax probe on ice - sources Posted: 05 Feb 2018 12:38 PM PST |
| Posted: 05 Feb 2018 08:31 PM PST http://www.forexlive.com/news/!/the-xiv-is-going-to-be-the-first-big-etf-blowup-and-credit-suisse-is-getting-hit-hard-20180206 can someone explain to me what the heck [link] [comments]  |
| Eerie similarities between 1987 and the current fall Posted: 05 Feb 2018 09:12 PM PST https://www.zerohedge.com/news/2018-02-04/ghost-1987 The whole article is a good read but here's the part talking about the parallels of the two:
[link] [comments]  |
| Posted: 05 Feb 2018 02:51 PM PST |
| A third of the IBM global workforce will be “productively redeployed” in 2018 Posted: 05 Feb 2018 07:25 PM PST https://www.theregister.co.uk/2018/01/11/ibm_gts_2018_consult/
Chart: https://regmedia.co.uk/2018/01/09/ibm_do_not_distribute.jpg TLDR: IBM is continuing to cut costs through "human resource adjustments". [link] [comments]  |
| Does anyone here advocate stocks over index funds? Posted: 06 Feb 2018 03:08 AM PST While there's a lot of talk on stocks here, it seems like I constantly see people just suggesting index funds. I understand that for the vast majority of the public that wants to invest it's a great way to go. While I do have money in an S&P 500 fund, I also do genuinely enjoy investing in individual companies, so perhaps many on here recognize that indexes are great but enjoy the actual stock investing. I'm curious if there's anyone here who actually advocates stocks over index funds and why? Thanks for your thoughts. [link] [comments]  |
| Stock sell off continues in Asia, Nikkei down 5%, Hong Kong 5.12%. Posted: 06 Feb 2018 01:14 AM PST |
| Market Volatility and Why Today Is Okay Posted: 05 Feb 2018 03:53 PM PST Today the Dow posted its single largest point loss of all time.
For perspective the second largest daily drop in the Dow was on September 29, 2008 when it dropped 774.17 points in one day. Since we all know how 2008 ends, today's drop has to presage something impressive doesn't it? I guess when you consider that drop is the 6th worst since January 25, 1989 (this is just how far Yahoo Finance would take the Dow). Are point drops important? The answer is: it depends -- but more often than not, the nominal drop in the Dow or the S&P 500 is going to break records. Since 1926, the S&P 500 has posted a yearly gain almost 80% of the time. I don't have equivalent stats but for Dow but for the sake of this let's assume the distribution is similar. If at the end of each year the S&P is 80% more likely to be higher than lower, we know the S&P 500 composite index is growing over time. The numerical value of the index is going to be higher. Does a 113.19 drop mean more today than it does a year ago? What about 5 years ago, or 10 years ago, or 20 years ago? The answer, I'm hoping, most of you have come to is that 113.19 will be worse in the past than it would be today. In historical terms this is how today's point drops in both the Dow and S&P rank: #1 worst drop of all time. In percentage terms, here is how the drop registers:
If the drops in the S&P 500 of 4.12%, 4.35%, 4.77% and 6.59% in 2011 did not worry you, neither should today. If it did, you should rethink your asset allocation. The absolute worst daily drop for both the Dow and S&P was Black Monday (10/19/1989) where the S&P lost 20.5% in one day. For the year, the S&P ended up 31%. For those who have just began their investing careers, here's another helpful fact: Since 1980, the average intra-year decline in the S&P 500 is 13.15% Last year was a very odd year for market volatility. Don't get used to that. [link] [comments]  |
| VIX, XIV, SVXY, HVI termination? Posted: 05 Feb 2018 03:30 PM PST I don't have a lot of knowledge on this stock HVI.TO but I know its a Canadian version of the XIV. I know that XIV can terminate if it falls 80% intraday. Can anyone with knowledge of HVI tell me that if it can also terminate or will not terminate even with a 80% drop? [link] [comments]  |
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