Investing 102

[WSSix]

Yep, I've already moved money into the brokerage account so I can buy as soon as things start turning around. I really don't understand this dip. Sure, I expect a lot of companies to be affected by the virus, but not to this extent. I think people are just panicking to panic. The media isn't helping either. So I'll just sit back and wait patiently.

I do like the bit I heard about one company that makes masks suddenly having their stock go through the roof

[Vegas69]

Greg also taught us not to catch a falling knife.

All it takes for a market to change is pessimism and fear. One of my good buddies was freaking out this week because Sam’s club was out of tee pee. Apparently there is a supply buying frenzy out there. Many in society are so warped by the media and it’s really too bad. Personally, I’m 20+ years away from withdrawing any retirement funds so it can do whatever. Next time the market makes a big run, it may be time for some change in my strategy. At some point a hair cut effects the lifestyle you’ve planned and invested to provide. Don’t wait until it’s too late to ride out another cycle.

[Flash68]

Originally Posted by SSLance

I feel like this is the time Weld would be telling us to hang tight... We all bought quality companies and they'll be the first ones to recover once the nonsense goes away.

Personally, I think the huge players are the ones driving this spiral...building opportunities strictly for themselves. Long ago I would have been anxious but thanks to the learning gathered in this thread...I'm still sleeping well.

I think Greg would have sold some positions to rebuy on the dip. How many is anyone's guess.

[XLexusTech]

Originally Posted by Flash68

I think Greg would have sold some positions to rebuy on the dip. How many is anyone's guess.

Agreed. I had a crazy year and I wanted to take some money off the table. Doing so was gong to be at a big tax burdon as i was alreay in the 35% bracket... so I didn't. I still buy 2x a week and dollar cost average... so long run this dip should work in my favor .. assuming it bounces back before 2023 (my retirement year goal)

[rustomatic]

Monday's looking like more of the same thing: going south.

While last week's "good times" actually gave a lot of traders a terrible day(s), many had a good week last week trading (not investing) in companies that are claiming to be working on vaccines and whatnot for coronavirus. As Trey mentioned, even companies that sell painter's/SARS masks had their stocks skyrocketing last week (Home Depot even put sales limits on them). We're talking multiples of doubling in value, some going many, many times their value. Generally, these are crappy companies, however, and you do not want your money near them long-term or passively . . .

Example tickers found here: https://finviz.com/.

The point here is that in stocks, there is always a bright side, so long as you are willing to burn your money in a Dumpster fire!

[JKnight]

And yet...today turned out to be a day with the biggest single day upside since 2009...Stay the course my friends, none of us will time each big move perfectly.

[WSSix]

and today was crap again, lol. Wild swings for sure. The only move I've made so far is on a utility because it's a utility. It should be largely unaffected by all of this. I figure it's panic for sure in this area so I'll take advantage of the situation.

My Hasbro is looking great right now, but it will be affected by what's happening in China. Long term I expect it to be fine so I'll probably move on it soon. I fully expect it to take time to recover. It's just at a great price point for me right now.

[JKnight]

Seriously, crazy times we’re living in for sure! We knew we had to be close to the next recession, but who knew what the catalyst would be this time. The fact that the market dropped this badly on the same day the Fed cut rates 50 bps is really telling about the level of pandemic concerns. We may see a good bit more downside, but things are definitely on sale compared to a few months ago! I’ll try to keep gathering cash and be ready to deploy when things start to stabilize.

[rustomatic]

Good points here, especially regarding the rate cut. The first thing that came to mind when word on that came out was the following: confidence in corporate U.S.A. When the last big dip in Dec. of 2018 happened, there was a lot more talk of the impossibility of the big companies being able to handle the present pile of commercial paper (read: massive debt). In other words, the Fed is making moves that should creep us out, but they'll be the last ones to explain . . .

On the positive side, biotechs and other panic-related stocks are still puttin' out. Volatility can be fun, but very expensive.

Originally Posted by JKnight

Seriously, crazy times we’re living in for sure! We knew we had to be close to the next recession, but who knew what the catalyst would be this time. The fact that the market dropped this badly on the same day the Fed cut rates 50 bps is really telling about the level of pandemic concerns. We may see a good bit more downside, but things are definitely on sale compared to a few months ago! I’ll try to keep gathering cash and be ready to deploy when things start to stabilize.

[Vegas69]

It seems to me that the government is trying to escape the natural laws of this life. That being the ebb and flow of everything. Does the economy really need stimulated again? All I can think is that when the old you know what hits the fan, it will be worse than if they would just leave well enough alone. Unemployment is the lowest it's been in 50 years! Real estate values have recovered, people are making money, the stock market is at record levels. Maybe they should've saved that mulligan for another day.