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This shows the Fed artificially lowers interest rates and boosts the price of financial assets with global QE and forward guidance of ultralow overnight rates.
The banks are still solvent. Real estate values are stable. That's why the markets have not deleteriously crashed. The markets right now are pricing in a relatively short downturn in the discretionary service sectors.
They will crash if the banks become unstable.
No way the Fed would allow that to happen today on any significant scale. We know that from the post 2008 crash.
This shows the Fed artificially lowers interest rates and boosts the price of financial assets with global QE and forward guidance of ultralow overnight rates.
This shows the Fed artificially lowers interest rates and boosts the price of financial assets with global QE and forward guidance of ultralow overnight rates.
when we leave it in play it is no different then anyone else first buying in that day .
our profits or losses are already reflected up to that point .
Right. We are faced with the decision any given day to stay in at the current price or sell out. If the DCA is below that price, it is a gain; if DCA is higher, it is a loss. So the current price reflects something different to each person depending upon when they entered the market.
But that point doesn't answer the OP's question: why has the market dropped so much? My point is that I don't think the market has dropped that much for many stocks since we are only going back to prices last seen in late 2019.
It hasn't dropped enough. The Dow should be between 6000 and 8000 given today's economy.
As a doc I believe that medicine will get us more knowledge and enough control of the virus situation in the coming months. Look to China and Italy for a somewhat delayed look at what to expect here. I am not as pessimistic as you, but would not be surprised at another 10 or even 20% more of a drop. As a long term investor I'll be buying soon, as I see this whole situation as another buy low opportunity. It might take a year or more, but I am optimistic long term.
a better saying is buy high and sell higher. when that trend is already moving up that upward momentum may be the better time to buy . buy high and sell higher may be a whole lot more profitable but you never hear that.
why?
because the people who know don't tell , and the people who tell don't know.
You never hear that because it rarely happens. Nobody sells when the market is heading up. Once the market heads down, all those stop loss orders kick in, pushing the market down. Hedge funds know to short the market to ride the stop loss, so they short the market, and down it goes.
The only people who count are the ones with a seat. The rest of us are left wagging the dog.
As a doc I believe that medicine will get us more knowledge and enough control of the virus situation in the coming months. Look to China and Italy for a somewhat delayed look at what to expect here. I am not as pessimistic as you, but would not be surprised at another 10 or even 20% more of a drop. As a long term investor I'll be buying soon, as I see this whole situation as another buy low opportunity. It might take a year or more, but I am optimistic long term.
First we have to fund the medicine. If we run half a million tests a day, we would have a handle on the epidemic and who needs quarantined by June. It's our only way forward short term. The dumbass politicians haven't figured it out.
Instead of squandering money on bailouts, we should be running tests. How many tests do you think $2 trillion would buy?
First we have to fund the medicine. If we run half a million tests a day, we would have a handle on the epidemic and who needs quarantined by June. It's our only way forward short term. The dumbass politicians haven't figured it out.
Instead of squandering money on bailouts, we should be running tests. How many tests do you think $2 trillion would buy?
We will get there with tests and the $2T. They are not mutually exclusive by any means.
We will get there with tests and the $2T. They are not mutually exclusive by any means.
Soon enough for the economy to not be F***ed!?
We needed the tests yesterday. If we keep the country on lockdown until July or August we will see greater than Great Depression levels of unemployment.
My rough estimate is that every week of lockdown will require 2 months worth of recovery. We are starting week 3.
Maybe you guys aren't seeing stuff on the ground but I work with young people & I'm starting to get a picture. The youth unemployment is going to be insane, could get above 50% the longer this goes on. The service sector collapse is going to hit them hardest. There aren't enough DoorDash orders or Amazon warehouse workers to absorb everything that's been lost.
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