Dow Jones Crashed this Week, Historical Decline

[FriendlyFire]

Has the economy shown any signs of recession? Not as far as I’m aware.
Is there an imminent crisis that threatens the whole world? If there was, would it matter if you owned stocks?
I don’t understand the markets panicking over this.

Its called a bubble

 

[amadeus]

Its called a bubble

By how much do you think stocks in general are overvalued?

 

[Moriarte]

Well, the oil price war started yesterday. And yes, it certainly drove the market down. Mostly though, it’s about all the uncertainty across so many areas. Trump feeds that.

Logic says that rapid fall in energy prices is supposed to drive general market up. And vice versa. A spike in energy price = more expenditure for everyone.

 

[red_elk]

Brent is 37. Our government says we have enough reserves to live without any budget cuts for 10 years, with oil price 30 $/b and for 6 years with 25$/b.
Ruble fell by 10% which is less than I expected. Guess the exchange rate was already low.
Surprisingly, bitcoin also lost about 10%

 

[W|M]

Thread may need a new title. The historic decline of that week's crash may be an afterthought by this Friday.

It's just a dead cat bounce

 

[hobbsyoyo]

It's just a dead cat bounce

I think he was saying it is going to crash lower...

 

[Timsup2nothin]

It's just a dead cat bounce

I think he was saying it is going to crash lower...

Hobbsyoyo is correct. The week the thread title refers to saw a 4000 point drop. With the oil price war added to the ongoing virus fiasco by Friday people might be saying "remember the good old days when we thought that just a 4000 point drop in a week was a crash?

 

[Timsup2nothin]

Logic says that rapid fall in energy prices is supposed to drive general market up. And vice versa. A spike in energy price = more expenditure for everyone.

Depends on what causes are attached to the rapid fall. This particular fall is "induced chaos," and the markets hate chaos.

 

[civvver]

It's a big drop and it's going to go lower, but like I said part of that is excaerbating by the fact it shot up ~30% in two years so this looks like a massive loss, and it is if you bought at the peak of course, but it's really just giving up previous gains. I do think it's going to go lower until all these work stoppages from quarantines die down. Things will normalize eventually.

 

[El_Machinae]

By how much do you think stocks in general are overvalued?

Hard to unpack. A reasonable portion of the rise was due to stock buyback (and a reasonable portion of that was from bond issuance). And I think everyone is just pricing in more QE from Trump's Republicans.

 

[Birdjaguar]

By how much do you think stocks in general are overvalued?

Compared to what? The crisis we have now is not one of valuation; it is global uncertainty about 2020 and 2021 earnings.

 

[tuckerkao]

Compared to what? The crisis we have now is not one of valuation; it is global uncertainty about 2020 and 2021 earnings.

Trump's administration has some faults by not telling all the facts and reality situations, just keep wanting to create bubbles.

All the gains made on Tuesday(yesterday) has been washed out Wednesday(today), imagine who will still trust Dow Jones?

 

[Birdjaguar]

Trump's administration has some faults by not telling all the facts and reality situations, just keep wanting to create bubbles.

All the gains made on Tuesday(yesterday) has been washed out Wednesday(today), imagine who will still trust Dow Jones?

While the scale of this crash is larger than most, Wall Street has seen this scenario before. The 11 year Bull market ended today and Trump will get the blame. Investors know that "this too shall pass" There will be a bottom and and it will be a good time to buy. There is money to be made. Those who needed there money now or this year are the most screwed. We saw it all before in 2008. Those who sat tight will be fine. Those who are mostly in bonds, are smiling. Unless you plan on being a day trader or are only interested in making short term profits, you need to take a long view of the market. Buy and mostly hold and add as you can over time. Don't be greedy and let the time do most of your work.

 

[tuckerkao]

While the scale of this crash is larger than most, Wall Street has seen this scenario before. The 11 year Bull market ended today and Trump will get the blame. Investors know that "this too shall pass" There will be a bottom and and it will be a good time to buy. There is money to be made. Those who needed there money now or this year are the most screwed. We saw it all before in 2008. Those who sat tight will be fine. Those who are mostly in bonds, are smiling. Unless you plan on being a day trader or are only interested in making short term profits, you need to take a long view of the market. Buy and mostly hold and add as you can over time. Don't be greedy and let the time do most of your work.

My family already sold almost all of the stocks when the Dow Jones hit 24,000 points, never wait until the highest top because it'll be too late to react when it starts to crash down.

I'd say don't buy it until it sinks below 20,000 points, or even lower depending on whether Coronavirus is under controls or not.

"Bank of America" was 1 of the stocks that really jumped up since 2009(The year my dad bought in).

 

[Birdjaguar]

My family already sold almost all of the stocks when the Dow Jones hit 24,000 points, never wait until the highest top because it'll be too late to react when it starts to crash down.

I'd say don't buy it until it sinks below 20,000 points, or even lower depending on whether Coronavirus is under controls or not.

"Bank of America" was 1 of the stocks that really jumped up since 2009(The year my dad bought in).

I'm not an individual stock buyer and like indexes that are diversified. YTD overall I'm down 4.5% as of today's close. It is way too early to guess the bottom. And just like guessing the top, it's not easy. Trying to time the market usually means you leave money on the table when you sell too early and lose money when you sell too late. Dollar cost averaging going in and riding out the tops and bottoms is the easiest and best way to build your portfolio. Stocks are risky and 11 years of bullishness can make folks complacent. I hope your family didn't put their 24,000 level profits in a savings account earning 0%.

By setting an arbitrary buy point like 20,000, you are likely to also miss the next bottom. If it is at 21,000 and you ignore it, then you make a huge error. It's tough.

 

[tuckerkao]

By setting an arbitrary buy point like 20,000, you are likely to also miss the next bottom. If it is at 21,000 and you ignore it, then you make a huge error. It's tough.

Coronavirus will have to be controlled first which is the real threat causing the stock to sink down.

I'm happy with what my dad got since 2009 and my family has the healthy financial condition now, so I don't want to be risky during the volatile days.

 

[Birdjaguar]

As soon as the uncertainty settles, the market will stabilize a bit and prepare for the election jitters.

 

[Kaitzilla]

Futures are crashing again with the Europe travel ban.

Gonna be rough tomorrow morning.

NBA cancelling the season is going to shake the average person.

 

[Socrates99]

Futures are crashing again with the Europe travel ban.

Gonna be rough tomorrow morning.

NBA cancelling the season is going to shake the average person.

Have they made that decision yet?

 

[Birdjaguar]

Have they made that decision yet?

Yes, the season has been suspended.