Stock Market Losses

For those who don’t keep a close eye on markets, the Dow just closed down over 1,100 points following a 665 point loss on Friday. I laugh when I see uninformed posts on social media about a “crash.” In my opinion, these are market corrections and will likely continue for the near future before leveling off. Everything the markets have gained in the first month of 2018 were essentially lost. It’s crazy how volatile things can be with little action as a cause (other than the potential for interest rate hikes). Will Trump lay claim to these losses the same way he claimed credit for the rapid growth? I think any President has as much to do in deciphering the trading of stocks (positive or negative)as I do from my desk at home.

Some of the bloggers and advisers I follow are preaching for a “strategic buying” in the next week or two, while others are anticipating a much longer, yet subtle decline. It will be interesting to watch. Either way, I won’t be retiring any time soon

I like the quick political jab in an otherwise good thread…

I like to invest my money in “sure” things only. Lottery tickets.

404 ERROR wrote:

I like the quick political jab in an otherwise good thread…

Noble attempt at derailing the thread. If a person claims to be a cause of success, can they not be questioned about the losses?

I don’t think any President can accurately claim to be a major influence on the markets (regardless of political party). Many have tried though.

buckybadger wrote:

Will Trump lay claim to these losses the same way he claimed credit for the rapid growth?

Hahahahahahahahahaahahahhh

Dude that’s the funniest thing I’ve heard in awhile, thanks for the early week laugh!

The losses are tied to Obama somehow, I’m quite sure.

buckybadger wrote:

If a person claims to be a cause of success, can they not be questioned about the losses?

You severely missed my point. You de-railed your own thread when you dragged politics into it. Or was that the reason it was started after all and the stock market gab was just a way in?…

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There are no losses unless you sell at less than what you bought in at. Buy and hold, diversify properly, keep 3 years’ worth of spending needs in a cash account, don’t panic and you’ll be fine. Success at market timing is pretty elusive.

Ron wrote:

keep 3 years’ worth of spending needs in a cash account

I don’t have 3 years worth of spending in a 401k, who the heck has 3 years worth in cash? May as well put into bonds, gold or real estate rather than have 3 years in cash.

Used to be a broker. This is institutional money taking profits in advance of\while a tax cut taking effect. Fundamentals overall are strong for most sectors, wages are going up, unemployment is going down. More money in the “system” means inflation will start to creep in. When the fed sees that happening they raise the prime rate, what banks pay to the Fed to meet their minimum deposits requirement on a daily basis. This trickles down to consumer interest rates. The sky is not falling, the big players are just making money. We are going the right direction, borrowing money cannot cost near to nothing for ever… ECON 101.

biggill wrote:

<div class=”d4p-bbt-quote-title”>Ron wrote:</div>
keep 3 years’ worth of spending needs in a cash account

I don’t have 3 years worth of spending in a 401k, who the heck has 3 years worth in cash? May as well put into bonds, gold or real estate rather than have 3 years in cash.

3 years MINIMUM. If you really want to take advantage of the market then most experts say you should have 10 years gross salary in physical cash, in one location, in small denomination bills.

Just LOL if you don’t man, what are you doing?

Buy gold…

…and more fishing gear

Sorry, my “3 years in cash” is a policy geared to retirees who are drawing off their investments for living expenses. That allows you to withstand a 3-year market decline without having to sell equities. The cash account can be CD’s, savings accounts, money market funds. They still earn a little interest but most importantly won’t decline in value. Unless all heck breaks out. Then the most valuable items will be canned goods, ammo and firewood.

3 years MINIMUM. If you really want to take advantage of the market then most experts say you should have 10 years gross salary in physical cash, in one location, in small denomination bills.

Here’s a guy who watched Breaking Bad….

Trump can certainly claim his policies/regulation reducing positively influenced the rise in the stock market and on the other hand, most certainly could have nothing to do with future predictions, panics and sell offs. People who know how the market works, understand this easily. Those who want to saddle him with the dip, well then you have to give him credit for the record breaking rising market… all things considered, it equals WINNING.

Being almost 32 I feel its best to keep putting more in and have a long term view than get caught up in the ups and downs in the short term.

A lot of companies give some matching which is free money in my mind. I really like to look at the view of anytime you invest money in your 401k, roth, or other investments you’re paying yourself before paying out of your paycheck to anyone else. I do not understand why everyone doesn’t put as much in their 401ks or similar accounts as able.

Side topic to original topic why in the sam hill to ultra rich people and pro athletes possibly get foreclosed on? They have all that money and don’t pay off their house???

slipbob_nick wrote:

Side topic to original topic why in the sam hill to ultra rich people and pro athletes possibly get foreclosed on? They have all that money and don’t pay off their house???

Speaking rhetorically that’s a great question, and I think the short answers are awful decisions and large sums of money in the hands of people who grew up modestly and all of the sudden find themselves in the 1%.

Anecdotal story: Anyone remember Trent Richardson? Stud former All-American Alabama RB, drafted I believe #3 by the Browns and later played for the Colts, now in the CFL. Bleacher Report ran a story on him about a month ago about how he’s not doing well financially. Apparently when he first got into the NFL he allowed 25 of his closest family and friends access to his bank accounts. TWENTY-FIVE PEOPLE.

Only one example but it’s a similar notion duplicated by many athletes.

It’s very easy to do when you let others spend your money. They tell you your mansion is an investment. They tell you take out loans because you have guaranteed money coming in.

They tell you not to worry about retirement because the NFL has a pension for you.

They’re in the business of playing a kids game, without the slightest clue about money. Not unlike most high school graduates. Including myself.

They teach you nothing in school about money. You only learn how to make money work against you.

I’m about 1 1/2 years into my retirement and spending has been faster than expected. At this point, the market over the last year has kind of saved my ass.