Financial Markets Meltdown

[Twisted Canuck]

Well, it was bound to happen, the coronavirus is just a convenient trigger....looks like the Dow Jones has shed roughly 1700-1800 points since opening bell yesterday. TSX also down similar. Some folks gonna take a beating. And, as always, some folks are going to get rich. I can't help thinking how make-believe it all seems sometimes, as billions or trillions of dollars 'evaporate'...Will be interesting to see where it lands.

[Map Maker]

We were at all time high for quite a while.
Most people took profits.
Billions evaporate, that were not really there to begin with.

Of course it will over correct and there will be buying opportunities if you can pick the bottom.

[Selkirk]

.
I've been waiting for something like this to happen for a long time now (market meltdown).

If this keeps up, it will soon be a Great Time to 'Buy' ❗

Selkirk

[pikergolf]

I'm about 65% cash, now to find the bottom.

[Justfishin73]

Who told you guys to bail at 29,500? Damn glad I did

[Scott N]

My investments are for long term, so I'm trying not to even look at this news.

[Trochu]

I've been wanting to buy Ford for quite awhile now, curious how low it will go before it bounces back.

[Twisted Canuck]

Originally Posted by Scott N

My investments are for long term, so I'm trying not to even look at this news.

Exactly. I'm not sweating it. My portfolio is diverse large cap blue chip dividend paying. Those companies aren't going anywhere. I could care less what the share price drops or climbs to any given day. As long as I'm not selling, I'm not losing. Just the dividend income is enough to float part of my boat in a pinch. All gets re-invested anyway.

When the markets crashed in 08 and everyone was getting killed, returns were still over 7%. Conservative, safe and boring.

[ORV]

Originally Posted by Scott N

My investments are for long term, so I'm trying not to even look at this news.

x2 but I still do anyway

Ouch! lost lots since last week & it is not hi risk stuff

Orv

[Selkirk]

Originally Posted by pikergolf

I'm about 65% cash, now to find the bottom.

By the time you "find the bottom", you'll only see it in the rearview mirror.

'Dollar Cost Averaging' is the better way to go.

Selkirk

[Selkirk]

.
The World Health Organization (WHO) recently estimated: 'The Flu' kills between 290,000 to 650,000 people globally, each year ❗

Compared to those numbers, the COVID-19 Coronavirus is still just a small blip on the map.

Health.com Link 👉 https://www.health.com/condition/col...flu-every-year

Selkirk

[Dean2]

Originally Posted by Selkirk

.
The World Health Organization (WHO) recently estimated: 'The Flu' kills between 290,000 to 650,000 people globally, each year ❗

Compared to those numbers, the COVID-19 Coronavirus is still just a small blip on the map.

Health.com Link 👉 https://www.health.com/condition/col...flu-every-year

Selkirk

Hey, hey, hey. Knock off the common sense crap. What good is a whole Zombie Apocalypse panic scenario if people start injecting common sense into the flippin discussion.
Can't move the markets on the common flu and the WHO will never squeeze $675 Million out of the world governments for it either.

[Twisted Canuck]

Originally Posted by Dean2

Hey, hey, hey. Knock off the common sense crap. What good is a whole Zombie Apocalypse panic scenario if people start injecting common sense into the flippin discussion.
Can't move the markets on the common flu and the WHO will never squeeze $675 Million out of the world governments for it either.

Yep, the WHO can play this for a couple billion $ more if the media just does it's part.....bonus money for all the execs.

[Ken07AOVette]

Originally Posted by Selkirk

.
The World Health Organization (WHO) recently estimated: 'The Flu' kills between 290,000 to 650,000 people globally, each year ❗

Compared to those numbers, the COVID-19 Coronavirus is still just a small blip on the map.

Health.com Link 👉 https://www.health.com/condition/col...flu-every-year

Selkirk

Yes, true, BUT 'The Flu' has been circulating over how many decades? Centuries? The numbers are an average.

This is not 2 months old.

What happens when this circles the globe for a decade?

[bdub]

I wonder if we will see futures halted on the US main indexes before the start of regular trading tomorrow.


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[blgoodbrand1]

I’m in and out a number of times per week. Watch for red. Buy. Set limit sell for small gains. Repeat


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[fishtank]

slight jump in the vix ...

[raab]

Worth watching for anyone who's missed it. Nice to see Dalio educating people when he could easily be sitting back on a beach somewhere.

https://www.youtube.com/watch?v=XGveJ5MyJRc

[bdub]

^^^ Thanks for posting the video. It's always worth listening and reading what he's got to say I think.

Sure didn't see much action on bonds today, they are not the equity hedge they have been in the past. I'm betting lots of folks are going to find that out the hard way that they are going to be in for a rougher ride than expected if they are holding the typical 60/40 stock bond portfolio. Investors need to be thinking outside that box imo.

[Map Maker]

If the markets drop heavily for the next three weeks, it will regain my confidence that the markets are always correct.

[fishtank]

Originally Posted by Map Maker

If the markets drop heavily for the next three weeks, it will regain my confidence that the markets are always correct.

Aim for November

[KinAlberta]

Originally Posted by Map Maker

If the markets drop heavily for the next three weeks, it will regain my confidence that the markets are always correct.

Benjamin Graham once said something to the effect that: in the short term markets are voting machines and in the long term they are weighing machines. This is a widely quoted sentiment.

Now think about that. We live in the short term. We never live in that long term. Today is all we ever have so we are always in that state where the value of the market is just an aggregation of airy-fairy participant votes. Every day in every market is just a confidence game. People saying that no one can predict the future but then proceeding to do just that.

[raab]

Originally Posted by bdub

^^^ Thanks for posting the video. It's always worth listening and reading what he's got to say I think.

Sure didn't see much action on bonds today, they are not the equity hedge they have been in the past. I'm betting lots of folks are going to find that out the hard way that they are going to be in for a rougher ride than expected if they are holding the typical 60/40 stock bond portfolio. Investors need to be thinking outside that box imo.

I think the big thing to realize is cash is worthless, and to be invested in high quality stocks, land, or housing to protect against inflation. Workers will be hit the hardest as they're the last to see the effects of inflation.

[bdub]

Originally Posted by raab

I think the big thing to realize is cash is worthless, and to be invested in high quality stocks, land, or housing to protect against inflation. Workers will be hit the hardest as they're the last to see the effects of inflation.

Maybe not worthless just yet but certainly a depreciating asset. When you can borrow it at the low rates of interest today its hard to make sense of holding a large chunk of cash equivalents as a semipermanent part of the portfolio. GICs are paying next to nothing. Bonds scare the crap out of me here with little in the way of a tailwind anymore with ten year yields in the .60 range and the USD tanking despite the FEDs lower for longer stance. I would add precious metals, commodities, and even art or collectibles to your list as a way to protect your wealth.

Another item of note today is Chinas statement that they are reducing their holdings of UST’s by 20% due to the level of US debt/deficits. Economic warfare between the US and China is picking up.

[bdub]

Originally Posted by fishtank

slight jump in the vix ...

Have a look at the VIX vs the Nasdaq or SP500 since mid August and in particular from Aug 17 until things started to crack. Thats not a normal correlation. To much speculation to the upside.

[mickeyjim]

Think there is an opportunity to pick up tech now? Thinking about buying an ETF like TEC or ZINT

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[Dean2]

Originally Posted by mickeyjim

Think there is an opportunity to pick up tech now? Thinking about buying an ETF like TEC or ZINT

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Like I always say, what I post is not advice, just what I am doing myself. Everyone has to do their own research and match stuff to their situation and risk tolerances. That said, personally I have sold off the vast majority of my Tech exposure and rotated that money into other sectors. I am not looking to buy back into Tech any time soon given the current trend in that area. I have never held any tech stocks as part of my long term buy and hold portfolio, tech has always been short term for me. Tech doesn't pay dividends, is very volatile and regularly subjected to market disrupting inventions and new technologies. None of these things make for a great long term safe hold with good growth since dividend growth and reinvestment is such a huge part of the success of long term buy and hold stocks.

[tirebob]

Originally Posted by Dean2

Like I always say, what I post is not advice, just what I am doing myself. Everyone has to do their own research and match stuff to their situation and risk tolerances. That said, personally I have sold off the vast majority of my Tech exposure and rotated that money into other sectors. I am not looking to buy back into Tech any time soon given the current trend in that area. I have never held any tech stocks as part of my long term buy and hold portfolio, tech has always been short term for me. Tech doesn't pay dividends, is very volatile and regularly subjected to market disrupting inventions and new technologies. None of these things make for a great long term safe hold with good growth since dividend growth and reinvestment is such a huge part of the success of long term buy and hold stocks.

How do you feel about metal and mining right now? Things like copper, gold and silver seem to continually be on the rise and only going to be more important as we move ahead for the near future anyways is what I am thinking.

[Dean2]

Originally Posted by tirebob

How do you feel about metal and mining right now? Things like copper, gold and silver seem to continually be on the rise and only going to be more important as we move ahead for the near future anyways is what I am thinking.

I was holding some commodity stocks in grains, fertilizer, copper, lumber, steel, oil, and uranium. The only stuff I still have is some oil shares I am short term trading, using only the profits I made on the first oil/gas purchases a few months back. Sold off enough to get my original investment in oil stocks back out so am playing with the houses money now. Most commodity stocks have the same issues as Tech. Volatile, cyclical, don't pay dividends, most outside of North America have significant political and enviro risks. I short term trade them, not a long term hold area. Even buy and sell I only buy the real big players like Inco, Newmont, Canfor etc.Never the juniors or start ups.

[Twisted Canuck]

Dow breaking 35K today, up and up she goes. How nerve wracking is it, waiting for the correction. May be some time to do some profit taking.