Dow up 5.25% today
- Thread starter NTDawg
- Start date
Whew. The body of that post turned it in hurry.
It should rebound rather well starting this summer. I know Goldman expects equities to basically be recovered by the time we reach the end of the year. Going to be a rollercoaster the next few months though.
Even if equities rebound, GDP and job growth are going to lag for quite some time.
It should rebound rather well starting this summer. I know Goldman expects equities to basically be recovered by the time we reach the end of the year. Going to be a rollercoaster the next few months though.
Even if equities rebound, GDP and job growth are going to lag for quite some time.
It's not quite that simple. If it has dropped 30%, which is about what it has, then it'll have to go up 43% to get back where it was.
You correct. I forgot to mention that in my original post that which was meant to be an in depth examination of the market. And you do realize that was the actual figures at the time up 5.25% on the day and down 25% year-to-date not from the markets high.
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You might be surprised at the number of people who don't realize that if something drops 50% it has to rise 100% to get back to the original point though. I'm not trying to say you're one of those, but there are many (probably not on a university board where most are college graduates, but over the general populace).
Seems to be in a pattern of rising 1000+ one day just to drop by 1200+ the next day. Soon you’d think there would be enough bargains out there to soon reverse that trend.
One step and one and a half steps back until it becomes straight up Depression Time.
A world wide economic down turn and a global pandemic. Interesting times.
A world wide economic down turn and a global pandemic. Interesting times.
Im probably in bottom percentile of ACT scores among SPSers but even I understand that 30% of lager number is greater than 30% of a smaller number.
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I’m was thinking that too but it may be longer - in a few weeks everyone will know someone who has it or died of it then quarantining will be the norm
If I were you I'd march to Wall Street, bust in to the nearest brokerage house and demand they put your money back.
I can only say what I am doing. Two weeks ago I increased my contribution rate from the bare minimum to get the company match (5%) to 10%. Last week I raised it from 10% to 20%. As it continues to go down, I will increase it to 25% or maybe even 30%. At this point, you are buying more shares at a lower price.
If you have a reasonable amount in your account(s), it's much more important to worry about how your balance is allocated than how your contributions are. I also would not blindly accept the apparent conventional wisdom that this drop represents some kind of obvious buying opportunity. It can go much lower.
I would simply make sure you're contributing enough to get the full match if applicable and consider allocating a larger portion to a cash equivalent like money market if that's an option.
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Thanks all for the advice. I've always just put as much as I can into the account but am pretty ignorant about how it all works. Right now, I'm contributing 12%. I do have a fixed annuity, so that makes me feel better. I'm going to make an appointment with the financial advisor at New York Life because I need to educate myself on this.
I’d suggest people look into WTRH, I got in at 1.02 and it’s around 2.5 currently, has a lot of room to grow, especially if we have quarantines in the future.
I guess I’m a “day trader”, just don’t trade with a lot of money lol. Why not JNUG? You don’t think it will ever return to $60+?
I definitely don’t know exactly what the 3x leverage.
It might but...
some of the dynamics in the gold market right now are awful for gauging leveraged Direxion funds. They are scams anyway, and are subject to "decay" and can be manipulated by a big buyer or seller. Additionally, a lot of firms are selling gold to meet margin calls which is driving down the price of gold. Big money is getting into bonds and the dollar, which is driving up the dollar index (DXY) which drives the gold price lower. You don't know how many more firms are about to liquidate their gold positions as an emergency...and this phenomenon is happening world wide because every known market in the world is selling off right now. Gold likes inflation and we are setting up for a massive deflationary spiral as is occuring in the oil markets.
The other side of the gold market is that bullion dealers in the U.S. and Canada are selling out of gold and silver coins, so at some point the paper market traders may start actually requesting delivery instead of settling in cash. I would stay out unless I was sitting in front of a computer every day because there are some more wild swings coming.
some of the dynamics in the gold market right now are awful for gauging leveraged Direxion funds. They are scams anyway, and are subject to "decay" and can be manipulated by a big buyer or seller. Additionally, a lot of firms are selling gold to meet margin calls which is driving down the price of gold. Big money is getting into bonds and the dollar, which is driving up the dollar index (DXY) which drives the gold price lower. You don't know how many more firms are about to liquidate their gold positions as an emergency...and this phenomenon is happening world wide because every known market in the world is selling off right now. Gold likes inflation and we are setting up for a massive deflationary spiral as is occuring in the oil markets.
The other side of the gold market is that bullion dealers in the U.S. and Canada are selling out of gold and silver coins, so at some point the paper market traders may start actually requesting delivery instead of settling in cash. I would stay out unless I was sitting in front of a computer every day because there are some more wild swings coming.
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I heard Russia has liquidated a lot of their gold investments that they’ve been stockpiling for years and that has been a big factor in the plunge. I listen to “The Investment Podcast”, which is a couple of guys that work for/own KPP financial out in Cali that handle very big in investments. They give great info and insight, if you ever want to check it out. But one guy thinks gold prices may skyrocket, but as you said have some swings.
I put it into some type of money market account this morning. I've lost about a fourth of it, but this will at least stabilize it until all this craziness passes.
Sounds like you locked in a 25% loss?
As for me, I'm staying the course. Spend some time reading over at bogleheads.org. This is a bulletin board for financial investors who follow Jack Bogle (founder of Vanguard)'s philosophy. You have to find an asset allocation (own some bonds to smooth the ride if you're too anxious about all stocks) that you're comfortable with, and then stick with it through market turbulence. The market was all gloom & doom during the last recession, and then reached new heights shortly after. Historically, the market has always returned. I'm continuing to max my 401k as stocks are now on sale. In a year or two, when the market returns, I'll have more shares to experience the growth with. And if you've got a long time until retirement, now is the time to buy stocks.
Good luck to you.
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