You should not be worried. It does not go up forever. Needs to come down. I would buy if I had extra cash. I am urging my husband to start buying again.
2 Likes
Nasdaq is only 40% above 2000 high. That’s a 40% return in 8 years. Why bother with stock market? Even a flyover house would be better.
What a scary fall. Even 10 year bond rate is pulled down by stocks!
1 Like
Not worried at all. I’ve had one house for 38 years. It averaged 8.7% annual return. I’ve been in stocks since 90. The stock returns beat it.
1 Like
Even if the market is totally flat, you will come out way ahead if you dollar average.
1 Like
I keeps telling BAGB that stocks are actually better than house, he refuses to believe. The return of my Singapore condo is pathetic! About 4% p.a. over a period of 20+ years. In a nation where everybody think housing is the best investment. Annualized return of S&P of 7-11% easily beat it.
Exactly.
RE has downpayment, then PITI for 30 years.
Stocks has initial purchase, then DCA f or 30 years.
1 Like
For those who want more than “sell the news (Tax laws passed)” reason, Jim Cramer has 6 reasons for you intellectual mind,
Cramer’s 6 reasons for why this sell-off makes sense
“For now, you have to understand that this market ran up too far too fast and was due for a decline,” the “Mad Money” host said. "That’s why last week I told you to raise cash. After today, though, it’s getting too late to sell, and if we get another move down, a second ‘Pats crash,’ it will create too many juicy bargains to ignore. So you can buy some stock tomorrow of high-quality companies that you like at prices a lot lower than you’ve seen in all of 2018.”
Thinking aloud: Should I consider buying LEAPS calls for FB, AMZN, NVDA and BABA?
My premise is it is a “sell the news” event, not interested in all the detailed reasons given by anyone.
1 Like
This was not unexpected. I would wait and see before buying. JIL was predicting this volatility. I have dry powder but everyone lost today. Not good for anyone.
If the market drops 20% probably a recession. The one we thought would happen in 2017 and kind of forgot.
Of all the stocks I watch the pot stocks are up. Go figure.
This is not a recession but just a sell off scare. Will go back to all time high in no time.
2 Likes
The NBER defines an economic recession as: “a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.”
2 Likes
I agree but it is good to be prepared for all scenarios
Speaking of surveys. We have one person predicting recession or at least 20% drop.
We are at 10. Any other guesses?
I think we test the 200-day. If we bounce over that, then leverage up as much as you can long.
Even two days before ptiemann was buying BITCOIN thinking it will go up again. Dow 666 + 1121 + tomorrow futures 400, do you think sell off scare? What if it goes down and stays same?
This may be a start of long slow growth or down hill for stocks. It is really hard to predict whether this is recession or not as everything (we will know) is after the fact !
For next 40-50 days, the chances of market going down is higher than going up, esp before middle of Mar 2018. IMO, another 10% drop in next 40-50 days is possible.
2 Likes
Wow, I take a day off from work to check on my contractors and BOOM there goes the stock market!!! Kinda saw this coming though…
I think JIL predicted when bitcoin crashed the market would too. Prophetic
Well, I equated bitcoin to Beanie Babies, we all knew it was crap
Millienals all told me I was too old to understand. Actually was too old to bother. Just hope it goes away .
Where’s the survey?
I am not a techie strictly informal. Jil picked 20%. I will pick 15%. Probably will take less than three months.
DCA…
1 Like