Stock market.... What are you doing?

[Nevermore]

GET OUT!! Seriously.

If you still can.

https://www.dailymail.co.uk/news/ar...-concerns.html?ito=social-twitter_dailymailus
The New York Stock Exchange is considering shutting its trading floor amid panic the spread of coronavirus could lead to a global economic disaster.
'NYSE preparing for possibility floor can't open amid panic,' Fox News reporter Charles Gasparino tweeted just before the markets closed on Friday.
Wall Street firms are also restricting travel and telling employees they may have to work from home, Gaparino said.

Do not think for a second it will not happen.

As much as I don't care for stocks investing, the floor closing is more a formality than anything. You do not need a soul in that building in order to continue trading. Generally people are kept there for the sake of prestige.

 

[CHCRandy]

As much as I don't care for stocks investing, the floor closing is more a formality than anything. You do not need a soul in that building in order to continue trading. Generally people are kept there for the sake of prestige.

And it don't really matter if the market does close. Look at Shanghai market, they closed it Jan. 23rd. It reopened on Feb 3 and at the lowest was only down 10% off high. It regained most of that in the following days before falling a little last week. It still is down less than 10%. Now compare that to our Dow or SPY....where we are already 13-15% down from highs.

I don't think the virus is the only reason our market sold off, or it wouldn't have went into correction, which is -10% from highs. I think virus, overbought market, elections (Bernie) and then you have the Democrats wanting to create fear and panic....for political reasons. The markets reached the highs on hype and fluff. If you didn't sell out at highs or near them....I wouldn't sell now, my personal opinion. It may fall a little more, but upside outweighs downside to me. I will have some puts in case though.

 

[KittySlayer]

For years I've wanted to get into buying stocks on my own. Nothing big, just maybe another avenue to get into and learn about something I don't know much about.

Why wait? Buy, Buy, Buy

This may not be the time for a novice to get into the market with real money and that is your decision.

However, to learn about the market requires no money. Take a $25k pile of Monopoly money and start investing as if it was real money. Track your successes and failures on paper. Understand what mistakes you made and learn. Think about your successes on paper, luck or good decisions? At the end of the quarter, year, etc. do you have more or less than a $25k stack of Monopoly money?

By learning now when you have a stack of real money you will be much more confident investing in the market. Chasing stock advice from cocktail conversation is usually too late.

 

[Principal Skinr]

I'm keeping what I've got and continuing to buy. I'm playing the long game. Steady as she goes.

 

[AtTheMurph]

Property is the thing to own. Just keeps going up.

I remember my dad buying farm ground at public auction when hundreds of parcels were up for sale because the farmers were all bankrupt. He bought an 80 acre parcel sight unseen. Still own it.

But if you believe that farm land "just keeps going up" you will likely end up like those farmers did in the late 70s .

 

[BugI02]

Check out the post from BugI02 regarding VYM. It's a good one. There are other Vanguard Total ETFs that are good. Do your homework on what suits your needs.
What brokerage do you have your SEP IRA at? Maybe move over to TD Ameritrade if you're not there already. They have terrific trading tools on their TOS platform.

Thank you. Doen't have any get rich quick appeal, but pays you 3.3 to 3.6% cumulative dividend yield just to own it (that yield will go up as the price comes down), the selected dividend stocks have potential for growth and a long strong history of dividend payments and increases. Will also recover more rapidly than more speculative ventures as there is usually a flight to quality after market scares and provides a reasonable level of diversification

Another good purchase (if you don't need to get rich tOMORROW) is VBIAX, a 60/40 balanced fund. I own this. It has low expenses and captures on average 50% of the market upside and only about 33% of any downside

Don't forget about liquidity, either. If you invest in some obscure instrument with little market cap you may not find a buyer when you wish to sell

 

[smokingman]

https://downdetector.com/status/td-ameritrade/news/293202-problems-at-td-ameritrade/

• Ann Gray • a day agoCould not login yesterday 2/28/20. I kept brining me back to log in page. Then it locked me out. Then, I could not reset any password because it did not recognize my sign on , social security or zip code. Tried to call four times for log in help. Waited over 40 minutes each time. Could not trade and worried the same will be for Monday since they do not have a weekend option for log in assistance
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  Charles Player • 2 days agosince its free now, is there really any urgency to get back up and running?
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  Henri • 2 days agoBeen waiting on the phone for more than 3 hours...this is insane...garbage...losing money and can't do much...it sucks
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  janos varasdi • 2 days agoYou get into a trade is not filling, you cancel get a little notification left top corner -you are out and then
  it fills you 5 min later ay of target.....
  This platform became garbage since its free.Today the chart wasnt even filling for 5 min...RIDICULOUS
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  SK • 2 days agoUgh!!! Been waiting on hold for over 15"!! Margin not updating
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    SK SK • 2 days agoLine disconnected after 40" wait - Twitter account not responding! Unable to trade
    
    
    
    
    
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It was also reported on Bloomberg,CNBC,CNN,and Market watch.Many brokerages have had issues in customer access for awhile.

Me personally like TIPS US treasuries.
Why? They are a secure investment.I also see the record low in US treasuries,and know the banks most likely will start to sell them to maintain 10% capitol.
This will lead to inflation.Probably not in a week or even a month,but longer term.
Never hurts to have protection against inflation given volatility.
I have very little left in investments at this point.I cashed out 2 weeks ago from stocks,and am not looking to get back in for at least a year maybe more.
https://www.treasurydirect.gov/indiv/products/prod_tips_glance.htm

 

[AtTheMurph]

I would gladly trade my and the wife’s 401K for farm ground. My great grandchildren can thank me later.

You can do that now.

 

[smokingman]

https://www.newyorkfed.org/newsevents/news/research/2020/20200211

Household Debt Tops $14 Trillion as Mortgage Originations Reach Highest Volume Since 2005
(how did it work out last time?)
https://www.newyorkfed.org/newsevents/news/research/2020/20200218
Year-Ahead Household Spending Expectations Decline in December 2019 SCE Household Spending Survey


And these reports do not even begin to take into the account of supply chains and employment numbers going sharply lower because of 10% of the globe being locked in their homes.

 

[AtTheMurph]

Here's a good piece of advice - don't catch a falling knife.

With what is going on --> ridiculously high valuations, the unknown of corona virus, rates at all time lows, debt at all time highs there seems to be plenty of pent up risk in the system.

The market is still priced to earnings perfection. If corporate earnings miss (virus or any number of other issues can affect that) there are many companies that are "investment grade" that will be downgraded to junk. Over half of Investment Grade debt is rated BBB, one step above junk. If and when that debt gets downgraded, pension funds, banks, mutual funds and insurance companies are all going to HAVE to sell.

Who is going to buy it? Not other banks, insurance companies or pension funds that's for sure and individual investors don't have the money to buy it all up either.

That is a recipe for a liquidity crisis like we had on 2008 where no one can sell but by law/definition they have to sell. And when they have to sell and there is no market for their investments are banks and insurance companies solvent? They don't have much leeway in asset values to be. Will they be able t pay their creditors and what is the value of their stock or bonds or swaps or insurance? We are going to be talking about bailouts again to "save the system".

It seems to me that we have the greater fool theory being practiced in great amounts. People buying because things are going up rather than because they are good value or they are buying things chasing minuscule increases in yield with no idea of the nature of the added risk they are taking on i.e., BBB bonds v. AA to get an additional .2bps yield.

That is a recipe to be disappointed or worse - for a crisis.

The 2008 financial crisis was never fixed. Too big to fail was made worse because we have fewer and much larger financial institutions. We have trillions more debt and we have a central bank those balance sheet is 5x larger than it was before the financial crisis. Any attempts by the Fed to reduce its balance sheet has been met with market drops that make them stop immediately and start printing money again. They are stuck.

They have blown the biggest bubble ever seen. Corona might be the pin that pops it or the bubble might go on for another 10 years or longer. I don't know but I do know that the bubble will pop and it will be bad when it does.

This isn't blood on the streets, not yet. But it might turn into it.

 

[smokingman]

Someone sent me this today.I had no idea the FDIC almost collapsed in 2008,and that it only had enough funds in December of 2019 to cover less than 1% of deposits.

15 minute video.It may be worth your times. His advise at the end to save with Treasuries vs MMA or CD is solid.I think treasury TIPS are the safest personally.
[video=youtube;-yhiKtN4dRw]https://www.youtube.com/watch?v=-yhiKtN4dRw[/video]

 

[Mgderf]

You're uncle is not "right".
This is not a correction. This is a panic. The markets are reflecting panicked investors that don't have the balls to play the market.
I do and I'm taking advantage of their mistakes and buying now. And I'll keep buying.

If you invest right now I bet you will have one of the most successful years you'll ever see.

For him being "not right" as you put it, he's done very well for himself in the stock market.

 

[hoosierdoc]

For him being "not right" as you put it, he's done very well for himself in the stock market.

We mean he was wrong to sell everything two years ago.

Everyone has done well in the market, to be fair

 

[Kirk Freeman]

I am buying!

 

[Dead Duck]

I am buying!

You heard the man.



I will have the steak and lobster with the potato, baked, a side of scallops, a side of escargot and a chocolate shake with whipped cream and two cherries please.

....and can I see the wine list?

 

[hoosierdoc]

DOW futures up...

 

[CHCRandy]

DOW futures up...

Yeah, they already suckered in some sheep. Opened down 1% earlier and had guys shorting it, now they are all trying to buy. I can't wait until 9:30 am. I am gonna be an option trading king this week! TDAmeritrade loves me....they bank big on options fees.

 

[zer0day]

Yeah, they already suckered in some sheep. Opened down 1% earlier and had guys shorting it, now they are all trying to buy. I can't wait until 9:30 am. I am gonna be an option trading king this week! TDAmeritrade loves me....they bank big on options fees.

Dow futures can be up till that bell rings and pants get caked again.
@CHCRandy yes sir option traders are killing it. Almost anything related to China can be shorted. TDA has great tools on TOS. Lot of ways to customize your alerts. 0.65 per option contract and 0 base fee.

Sent from my SM-G960U using Tapatalk

 

[hoosierdoc]

I haven't done options in a while. Risky business.

I have TDA accounts

Asian markets up. Shanghai up 2%

 

[zer0day]

Gold futures down 3% right now
Silver futures up 5.5%
Wti futures up almost 2%

Hang Seng is holding 2% up right now.

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