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0 pointseyegor6y ago0 comments

There may be no underlying financial issue, but percentage wise we're going down much faster. September to Oct 2008 was a 9.5% drop (steepest month drop). Past 30 days was a 20.5% drop. Tracking s&p 500.

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11 comments · 3 top-level

tathougies6y ago· 6 in thread

That's because of people panic selling, and it's a wonderful opportunity to buy cheap stocks.

jader2016y ago

The problem is stocks continue to fall — hard — and nobody knows where the floor is.

It’s also unclear how long it will take everything to recover, if they do continue to fall.

tathougies6y ago

Stock prices don't really matter in the short-term, and we are lucky that the underlying financials are good, and that -- at the end of the largest bull run in history -- many of the largest companies have lots of cold hard cash. Apples hundreds of billions don't look so silly now, do they?

Oh, BTW, the floor is hard-set at zero, which they'll never get to, since -- given there is no underlying financial issue, and that demand is going to be higher than ever once we're done with this -- all these companies have intrinsic value.

3 more replies

C1sc0cat6y ago

I am down 1 large in the uk today £10k

vsareto6y ago

You should only buy now if you a) suddenly have a lot of cash, AND b) can definitely take a long-term position without needing the money for 5-10 years.

Everyone else should wait for the upward trend to make sure it's not going to get much worse. You want to "predict the staircase" and not "the floor".

RandomBacon6y ago

> Everyone else should wait for the upward trend to make sure it's not going to get much worse.

"Don't try to catch a falling knife."

https://www.investopedia.com/terms/f/fallingknife.asp

gdubs6y ago

To put a finer point on it, a fully funded safety net is a good idea before moving money into investments. Enough to cover basic expenses for, let’s say, a year. How long exactly depends on your risk tolerance.

Not a financial advisor, standard disclaimers, etc.

cdata6y ago· 2 in thread

The stock market is not the economy.

mjevans6y ago

It doesn't even seem to be a real index on economic activity anymore either...

In my personal view 'The Market's purely reflect consumer confidence. They appear divorced from actual reality, aside from how that affects the mindset of easily panicked lemmings.

kqr6y ago

Money purely reflects consumer confidence, and as long as the economy is based on money, so does the entire economy.

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8ytecoder6y ago

Stock market is a tricky gauge. People sell for all sorts of reasons even if some of it is rational. Always good to remember that the fact that there’s a sale also means there’s a buyer. Another fact is there could be large number of shares that never traded. It’s hard to dissect this information from price alone. All we know from a dip is that there’s more demand to sell than buy. That’s hardly enough information to see the full picture.

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