For a sub that acts like it's level-headed and reasonable, it feels incredibly emotional. Investing |
- For a sub that acts like it's level-headed and reasonable, it feels incredibly emotional.
- Just remember this.
- The S&P 500 is in a bear market now.
- Dow falls below 22,000 after Steven Mnuchin's odd statement fails to calm markets
- Officially a Bear Market - Time to Think About Buying
- This is why Dividend Stocks are Good
- The 2-year Treasury has flash crashed and is now yielding lower than a 1-year
- Dow falls below 22,000
- So.... how much money did you lose?
- Nikkei drops 5%
- Dow has worst Christmas Eve trading day in its history
- Chinese state bank chief warns against buying property now ‘because there’s no money to be made’
- Snap, once seen as a viable competitor to Facebook, is struggling after the CEO Evan Spiegel ignored warnings about a redesign that proved unpopular.
- Things don't change
- Front end of yield curve is more reactive than long end.. Why?
- The last time there was this level of interest in the term "Recession" on Google was Nov 09
- Japan’s Nikkei Enters Bear Market. The Nikkei 225 Stock Average plunged below the 20,000 level and entered bear market territory, as Japanese equities headed for their worst December on record.
- S&P 500 Enters Bear Market
- I worry about my parents’ financial situation- and given the market, my father says he is shorting Index funds right now. I’ve been told from all my life that you should leave your investments as are during a recession. Could you help me understand / explain to him which is the right approach?
- A big picture perspective on bear and bull markets since 1926
- "The singular feature of the great crash of 1929 was that the worst continued to worsen... The smart money... went back in to pick up bargains... The bargains then suffered a ruinous fall."
- Your portfolio now vs. in 1-2 years
- How is Ray Dalio’s “All Weather” portfolio doing in the current market?
- Is now a good time to start a vfinx acct?
- TD
For a sub that acts like it's level-headed and reasonable, it feels incredibly emotional. Posted: 24 Dec 2018 06:34 AM PST A few months ago, when the markets were going up, people mentioning that maybe after 10 years of bull market a bear market might become more likely, they were shut up and being told the usual stuff, time in the market beats timing the market, there is no reason to think there will be a downturn, etc. etc. Now that stocks are down 10-15% literally everybody seems to be convinced that there will be a 2008-like recession. Why? It could just be like in 2011 or 2016, when we went down around 15-20% max and then up. Why doesn't anyone seem to even consider this scenario that is at least as likely? In reality, the sub really reacts like a typical emotional investor. When the market is up, everybody's convinced it will go up, when it's down, everybody's convinced it will go down. It was the same thing in the smaller dips during the year, people were also being convinced we were heading towards a recession for a few days—except it was more short-lived. Honestly, we have no idea if the market will be 20% up or 20% down in a few months. Nobody can predict that. So why don't people try to consider all scenarios? [link] [comments] |
Posted: 25 Dec 2018 01:23 AM PST In the first stage of an upward market—one that has been down awhile and that nobody expects to rise again—people aren't talking about stocks. In fact, if they lumber up to ask me what I do for a living, and I answer, "I manage an equity mutual fund," they nod politely and wander away. If they don't wander away, then they quickly change the subject to the Celtics game, the upcoming elections, or the weather. Soon they are talking to a nearby dentist about plaque. When ten people would rather talk to a dentist about plaque than to the manager of an equity mutual fund about stocks, it's likely that the market is about to turn up. In stage two, after I've confessed what I do for a living, the new acquaintances linger a bit longer—perhaps long enough to tell me how risky the stock market is—before they move over to talk to the dentist. The cocktail party talk is still more about plaque than about stocks. The market's up 15 percent from stage one, but few are paying attention. In stage three, with the market up 30 percent from stage one, a crowd of interested parties ignores the dentist and circles around me all evening. A succession of enthusiastic individuals takes me aside to ask what stocks they should buy. Even the dentist is asking me what stocks he should buy. Everybody at the party has put money into one issue or another, and they're all discussing what's happened. In stage four, once again they're crowded around me—but this time it's to tell me what stocks I should buy. Even the dentist has three or four tips, and in the next few days I look up his recommendations in the newspaper and they've all gone up. When the neighbors tell me what to buy and then I wish I had taken their advice, it's a sure sign that the market has reached a top and is due for a tumble. Excerpt from One Up on Wall Street by Peter Lynch. [link] [comments] |
The S&P 500 is in a bear market now. Posted: 24 Dec 2018 10:03 AM PST ATH is $2,940.91, minus 20% is $2,352.73. It closed at $2,351.25. Not exactly the Christmas spirit [link] [comments] |
Dow falls below 22,000 after Steven Mnuchin's odd statement fails to calm markets Posted: 24 Dec 2018 07:29 AM PST "This is the type of announcement that raises the question of whether Treasury sees problems that the rest of the market is missing," Cowen & Co. analyst Jaret Seiberg wrote in a note to clients. "Not only did he consult with the biggest banks, but he is talking to all of the financial regulators on Christmas Eve. We do not see this type of announcement as constructive." Mnuchin plans to convene a call on Monday with the President's Working Group on financial markets, which includes the chairman of the Federal Reserve and top market and business regulators. https://www.cnn.com/2018/12/24/investing/stock-market-today-dow/index.html [link] [comments] |
Officially a Bear Market - Time to Think About Buying Posted: 24 Dec 2018 10:53 AM PST We are in the first Bear Market in 10 years. Historically this is the time when long-term investors should be putting money to work. We most likely will have more pain to come, as Bear Markets usually drop about 25-30% off of peak. With that said another 5-10% drop is likely coming. Investors should not panic. By the word "investor," I mean someone with a time horizon of years not months. I for one will be putting money to work in 2019. I will calculate how much income I want to contribute to the market and make quarterly buys. Bear Markets should not be scary for long-term investors. We had a "Great Depression" and a "Great Recession" and the markets have always rebounded. Remember in 08-09 our whole Financial System almost collapsed. That is not happening right now. The fear is not a Financial System/Capitalist Form of Government collapse. The fear is a recession. There are other fears including the Fed raising rates too fast and our debt level reaching unsustainable levels (our debt level reaching unsustainable levels has been a fear since the arguments of Alexander Hamilton and Thomas Jefferson). Interest on our debt compare to GDP and Government Spending, including spending on entitlements, are legitimate fears of course, but our way of life and form of government is not going to collapse. Investors should not be putting money into the markets if they will need that money within a year or is part of their emergency fund. Only disposable income should be being put to work. If that is the case, investors should not worry about the market falling. Stress should easily be managed. Be smart with your money. A few indicators I am going to be watching are the Russell bottoming (I tend to agree this is a leading indicator), the Schiller P/E ratio, and the forward S&P P/E Ratio. The Schiller and S&P P/E ratios should tell investors it's okay to start putting money to work and the Russell bottoming would confirm. It is not worth it to panic. If you are panicking then either you have too much money in stocks, your time horizon is too short (you are more a trader than investor), or stock investing is not right for you (put money into bonds for guaranteed returns). Good luck everyone! 2019 is going to be a volatile year for the markets. Pick winners and watch company's debt levels and cash flow from operations. A healthy balance sheet will survive a down turn in the economy. [link] [comments] |
This is why Dividend Stocks are Good Posted: 24 Dec 2018 01:17 PM PST Alright guys I've had loads of egg nog, and am ready for the down votes, but here is my chance to cause all sorts of Christmas Eve fun: Dividend stocks are awesome. There. I said it. Now I know I'm going to get the whole "a company is worth $100. If it pays a dividend of $5, you now have $5 cash and a stock worth $95" etc. And that is true. Or the classic "if you need income, just sell some shares, and take the capital gains. You'll pay less taxes!" And that is true too. Except in scenarios where an investor needs to sell shares for income purposes in a shitty market. Like the one we are in now. Selling stocks at a loss hurts. Who cares about the "tax advantage" when your portfolio is down 30%. The best way to make money is to not lose your original capital, and selling into a down market is exactly that. This is where dividend stocks shine. You just sit and wait out the market, and your cash rolls in - it doesn't matter if your portfolio is up or down. And if you don't need the cash, you just reinvest your dividends and pick up "cheap" shares or your favourite companies. And in the long term you'll likely get your growth/capital gains too. I know this won't be a popular opinion, but I'm risking it anyway (blame the eggnog)Happy Christmas /r/investing. And please don't throw out GE's example of them cutting their dividend. We all know to do our due diligence and make sure that the companies we do invest in won't cut their dividend due to stupid business planning. Do your research, diversify, have a nice blend etc. Edit. I'm going to throw out that this post was to be a bit tongue-in-cheek. [link] [comments] |
The 2-year Treasury has flash crashed and is now yielding lower than a 1-year Posted: 24 Dec 2018 12:00 PM PST This is the first time the 1/2yr treasury yield has inverted as when the Stock Markets closed at 1pm Eastern, the Bond market stayed open and investors FLOCKED to safe havens to lower the 2-yr yield at 2.56% and 1 yr at 2.58% [link] [comments] |
Posted: 24 Dec 2018 07:57 AM PST |
So.... how much money did you lose? Posted: 24 Dec 2018 08:56 PM PST I had $400k in October. Now I have $240k. It is stressful but I WILL NOT SELL. My plan is to wait a couple years. Good stocks always recover. [link] [comments] |
Posted: 24 Dec 2018 06:49 PM PST |
Dow has worst Christmas Eve trading day in its history Posted: 24 Dec 2018 10:05 AM PST
[link] [comments] |
Chinese state bank chief warns against buying property now ‘because there’s no money to be made’ Posted: 24 Dec 2018 04:29 AM PST
[link] [comments] |
Posted: 24 Dec 2018 11:36 AM PST Earlier this year, Snap Inc. chief Evan Spiegel was pressing his team to launch a redesign of the company's Snapchat app. The executives and designers repeatedly responded with an urgent message: We need more time... https://stockmarketnews.today/2018/12/24/snap-once-seen-as-a-viable-competitor-to-facebook-is-struggling-after-the-ceo-evan-spiegel-ignored-warnings-about-a-redesign-that-proved-unpopular/ [link] [comments] |
Posted: 24 Dec 2018 02:20 PM PST 2 hours into a bear market and everyone is already acting like a few different federal executive actions would have lead to sustained 15% YOY gains. No one referencing debt growth exceeding income growth, declining sentiment, or sky high valuations of meme stocks that retail investors piled into. Right on schedule with nothing learned. Mods where's my shitpost flair? [link] [comments] |
Front end of yield curve is more reactive than long end.. Why? Posted: 25 Dec 2018 12:50 AM PST Can someone please explain why front end of yield curve is more reactive than long end? I.e during easing, curve steepends but when raising rates, curve flattens? [link] [comments] |
The last time there was this level of interest in the term "Recession" on Google was Nov 09 Posted: 24 Dec 2018 08:06 PM PST |
Posted: 25 Dec 2018 03:03 AM PST Japan's blue chip shares fell across the board, with Toyota Motor Corp falling 5.25 percent, Sony Corp shedding 5.55 percent, Nintendo down 4.3 percent and Mitsubishi UFJ Financial Group losing 4 percent. Defensive shares such as consumer staples, healthcare and utilities were unable to withstand the selling pressure. https://stockmarketnews.today/2018/12/25/japans-nikkei-enters-bear-market-the-nikkei-225-stock-average-plunged-below-the-20000-level-and-entered-bear-market-territory-as-japanese-equities-headed-for-their-worst-december-on-record/ [link] [comments] |
Posted: 24 Dec 2018 10:09 AM PST The generally accepted conditions for a bear market is a decline of 20% or more. The S&P 500 all time intraday high is 2,940.91. We closed today at 2,351.12, or down 20.05%. If you compare the drop to the all time closing high of 2,930.75, we are down 19.77%. [link] [comments] |
Posted: 24 Dec 2018 11:53 PM PST I have about 70% of my assets in various index funds and bonds, and my father was trying to convince me to sell so I could "cut my losses and buy at a lower price". I couldn't articulate why I thought this - and his shorting of index fund stocks - was a bad idea, but I got the sense they were from various previous conversations I've had. Could you help a novice understand why both of the above financial actions would be bad financially? [link] [comments] |
A big picture perspective on bear and bull markets since 1926 Posted: 24 Dec 2018 01:26 PM PST Found this nice little graphic recently. Hopefully this calms some jitters: https://i.imgur.com/xWg8mrD.png [link] [comments] |
Posted: 24 Dec 2018 01:58 PM PST From the opening of chapter 6 of JK Galbraith's "The Great Crash 1929." [link] [comments] |
Your portfolio now vs. in 1-2 years Posted: 24 Dec 2018 09:46 PM PST For investors who are holding and not selling, do you guys think it's a fun/good idea to upload a pic of your portfolio right now and then 1-2 years later come back, upload another pic of your portfolio to see how it has changed? [link] [comments] |
How is Ray Dalio’s “All Weather” portfolio doing in the current market? Posted: 24 Dec 2018 02:49 PM PST I'm not very savvy so this may be a bit of a simplistic question; especially given how short of a time the markets have been going down. I'm just curious since this is billed as a simplistic way to stay safe. [link] [comments] |
Is now a good time to start a vfinx acct? Posted: 24 Dec 2018 08:27 PM PST |
Posted: 24 Dec 2018 09:42 PM PST Mutual funds for TD? S&P? Etc? Not sure what is standard with TD. Most seem to have Vanguard and Fidelity [link] [comments] |
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