Historically companies will buy back stock or pay dividends. Right now they are worried about solvency that won't last forever.
DOW back over 25,000
- Thread starter Crazyhole
- Start date
One of the most troublesome aspects of being an investor these days is the high market volatility. 1800 points in a single trading session??!?
Once upon a time, financial investors pitched to their clients that they would automatically protect your investments if their was the market dropped that translated to you losing 10-15% of your account.
Hell, nowadays with the crazy market swings we've been seeing, you could lose a hell of a lot more than that before your financial advisors could activate your so-called protection -- and then when it does kick in, you miss out on the huge rebound that follows after it.
I'm very comfortable sitting it out right now.
Good idea. Way too many retail investors are getting in ahead of the crash and are going to lose their retirement funds. The crappy thing about this is that we are all basically on the hook for the losses now whether or not we are bought in or not.
Futures don’t open until 6pm eastern on Sunday night so anything before that would look flat. Weekend Wall Street was down over the weekend which is usually a decent gauge. S&P 2800 then S&P 3300 then 2100 is likely.
Good luck.
IMHO, that's like sitting on top of a bigass time bomb and saying, "The view from up here looks pretty good right now."
Yeah. I’d say it’s a bit risky in equities. Im at 12% in S&P fund, 28% gold, 7% gdx (gold miners) and the rest in cash. Missed out on a small percentage vs being all in S&P but for a reduced risk. Would need a decent pullback in S&P to increase stake there.
If you have all your money in stock yes it is. As long as you have the cash you will need for the next 5 to 10 years, not so much. Rarely are stocks down over a 5 year span, and almost never over 10 years.
Jeremy you are right to spread out your investments, but if you are under 40 and the money is in a retirement plan you are too conservative. Gold is a great inflation hedge but not a great investment. It was over 2k after the 09 crash and now is 1500 ish. that is a negative return over the span of 11 years. adjusted for inflation over a period of many years gold is almost always flat.
July numbers from the Congressional Budget Office had it at $2.8 Trillion. With only August and September to go in FY20, it will likely be over $3T.
You should get your numbers from better places.
Liberals:
- LOCK DOWNTHE COUNTRY NOW! COVID!
- PAY PEOPLE, STATES, AND EVERYONE ELSE A SHIT TON OF MONEY TO GET THRU THE LOCKDOWN!
- MOAR DIRECT PAYMENTS AND MOAR LOCKDOWNS! COVID!
- ERMAGHERD WE HAVE A HUGE DEFICIT! TRUMP! TRUMP DID THIS!
- LOCK DOWNTHE COUNTRY NOW! COVID!
- PAY PEOPLE, STATES, AND EVERYONE ELSE A SHIT TON OF MONEY TO GET THRU THE LOCKDOWN!
- MOAR DIRECT PAYMENTS AND MOAR LOCKDOWNS! COVID!
- ERMAGHERD WE HAVE A HUGE DEFICIT! TRUMP! TRUMP DID THIS!
You're dismissing the Fed and how the treasury is beholden to fund their actions. QE looks good on the books, but we are more in the range of 7 trillion this year.
Notice something funny about what numbers are moving and what numbers aren't?
Conservatives: We will create whatever liquidity needed to keep the economy going.
Also Conservatives: $600 is too much for people who lost their job due to Covid.
All of my funds have gone up since Trump opened things up and Biden won the election. I’m basically 2-3 years from retirement now. Vanguard
Holy crap the dollar has tanked in the last couple of weeks. DJIA is over 30k, bitcoin is over 19k, every worldwide index is up except for CBOE volatility.
Yes as someone who sends money overseas and invests..Dollar is low...Has been for last 4months
That is what would normally happen when our central bank is flooding our markets with currency just to keep stocks afloat for their billionaire buddies.
Funny how no matter what they try, they can't rid themselves of free market fundamentals.
I’m sure I’m in the minority, but I’m not happy to see the stock market booming. I think it’s a great indictment on the flaws of our greedy capitalist society that, during a worldwide pandemic when thousands of people are dying and millions are negatively impacted, that many of these big businesses are thriving.
I don't think that there's a need to pass a moral judgement here nor do I think that it's healthy to look at the stock moral scale.
There are a number of businesses that have experienced an uptick from their business model being suited perfectly to the environment. That doesn't mean that they are somehow predatory and taking advantage of sick people. Aside from the worries that have been stated on this board about the sustainability of such gains, having businesses that show stronger stockholder value may help maintain jobs, consumer spending, business growth in a period where a bear market would pile onto the hardships.
While it's true that the largest share of stocks are held by the "rich", you also have to look beyond that to see all of the groups that are invested in the stock market that you would consider middle class or even poor. On average, public employee pension funds invest 60% of their portfolio in the stock market. 40% of households earning 22k - 49k are invested in the market. That number goes up to 60% of households earning 50k-90k per year.
It's just not as simple as the "corporations are profiting while people are struggling" emotional appeal makes it sound and falling into that trap only leads to bad ends.
It's worth noting that the DOW reindexed earlier this year. It got rid of Exxon, Raytheon, and Pfizer and added 3 companies with higher ticker prices so 30k isn't exactly apples to apples from what it would have been had we hit that point last 3.
