Dow Jones Cashed in Today

[tuckerkao]

Oil Price War, it has shown up today. This is double dare, Coronavirus is something that President Trump cannot tweet away.

Dow Jones drew the chance card of "Advance to Boardwalk" today, plunged almost exactly -2,000

[Uncwilly]

Stocks are on sale. Time to buy. I did something similar back about 19 years ago. Waited for a lot of fearful people to run scared, then moved some cash to stocks.

[VBCurtis]

I disagree on "time to buy" just yet. Many financial talking heads still believe a 2020 recession in USA will not happen; buying stocks now is a wager that they're correct.
I'm not willing to make that wager just yet, so I wait with some extra cash on the sidelines. I'll be buying everything if dow drops below 20k.

Now does seem a good time to take profits from bond funds, for some freeing up the cash that can be put to good use on stocks later this spring.

[kyoshima]

[Dr Sardonicus]

03/09/20 close 23,851.02 -2,013.76 (-7.79%)

03/10/20 close 25,018.16 +1,167.14 (+4.89%)

[ewmayer]

@DrS: Because desperate daily government promises and money-for-the-speculator-class are what's important in a public-health emergency. 2008-9 all over again, just a different trigger for this latest massive stock-market bubble to have its Wile E. Coyote "uh-oh, I finally looked down, and all I saw was air" moment. Of course central bank perma-ZIRP policies were designed to eliminate traditional safe-yield investments (remember when earning 5-6% on a CD was considered normal? I do) and thus force hoi polloi, even seniors who should have no business risking their life's savings thusly, into stocks, thereby helping reflate the latter market. So now you have a whole lot of ordinary people who also have a vested interest in keeping those Wall Street bailouts flowing, by way of their 401(k)s and such.

Anyhow, there will be many such day-to-day market-whipsaw moves as the C-virus pandemic evolves - see you on the next cliff-dive!

[Batalov]

Originally Posted by ewmayer

(remember when earning 5-6% on a CD was considered normal? I do)

I do!

Uh-oh. That dates us, doesn't it? :-)

[Xyzzy]

Is the stock market a situation where if somebody makes money that means somebody else has to lose money?

[R.D. Silverman]

Originally Posted by ewmayer

@DrS: Because desperate daily government promises and money-for-the-speculator-class are what's important in a public-health emergency. 2008-9 all over again, just a different trigger for this latest massive stock-market bubble to have its Wile E. Coyote "uh-oh, I finally looked down, and all I saw was air" moment. Of course central bank perma-ZIRP policies were designed to eliminate traditional safe-yield investments (remember when earning 5-6% on a CD was considered normal? I do) and thus force hoi polloi, even seniors who should have no business risking their life's savings thusly, into stocks, thereby helping reflate the latter market. So now you have a whole lot of ordinary people who also have a vested interest in keeping those Wall Street bailouts flowing, by way of their 401(k)s and such.

Anyhow, there will be many such day-to-day market-whipsaw moves as the C-virus pandemic evolves - see you on the next cliff-dive!

And the proposed idiotic tax cuts in FICA and medicare won't work. It is aimed at
middle and working class wages. But the amount would not be enough to stimulate
demand by giving more disposable income; demand that could not be met anyway
because supply chains are broken or going to break.

CD's??? I remember when an ordinary passbook savings account gave 5%!

[Dr Sardonicus]

Originally Posted by R.D. Silverman

CD's??? I remember when an ordinary passbook savings account gave 5%!

Yes, me too. And banks giving away premiums with new accounts. And I also remember (early 1980's) CD's earning double-digit interest.

Nowadays, in many banks the tellers won't even break a bill for you if you don't have an account with them...

[chalsall]

Originally Posted by Dr Sardonicus

Nowadays, in many banks the tellers won't even break a bill for you if you don't have an account with them...

Here in Barbados, we're facing a really scary situation. A huge amount of our banking sector is controlled by large foreign (mostly Canadian) banks.

Over the last few years, they've decided that regular banking services for anyone who only transacts a couple of times a month and has less than ~$250K USD in savings aren't worth the trouble, and are closing down accounts...

This is having a huge impact on many of our retired population. It's bizarre! We live in such amazing times, but the wealth is unhealthily balanced (IMO).