+1
Stay away from those artificially up, buy those artificially down. Great day!
OT: Stock and Investment Talk
- Thread starter RU-05
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Stay away from those artificially up, buy those artificially down. Great day!
Irrationally? Some folks thought the same thing in January 2020. Are the odds of anything like 2020 be repeated with a new variant high? Absolutely not. Are they virtually nonexistent? No. But if you think this is all a game and you're just "funnin.." I guess it's OK.
Feb/Mar 2020 was the greatest event in the history of the market. So much money was made by those that stayed calm and saw it for what it was. I hope we see a 2.0 of this, but obviously that is highly unlikely.
The reporting and hysteria around this new covid variant is a microcosm of why the world is the way it is now.
Wholly irresponsible and sensationalized. Everyone acts purely on emotion.
Wholly irresponsible and sensationalized. Everyone acts purely on emotion.
Correct...social media and the internet have allowed the world to see/hear everything instantly and that is where overreaction occurs. I truly hope this variant isn't a real thing but this is a "sell the news" event
And these same factors impacted stocks moving to the upside. FOMO and the pumpers on social media and TV have moved stock prices way way above historical valuations. But why let the facts get in the way.
^^^^ Silly comment. Historically low interest rates, feds pumping, nowhere else to put money for quality returns. Social media and TV create panics. Bad news sells.
#facts
FWIW, a day like today is why Mr. ATH and I don’t see eye to eye. He’ll pump the market on up days, down days, and flat days. I’m a long term bull like him but there are days like today which show why it’s always good to keep cash on the sidelines and take profits when appropriate. Sold VXX today. Started small positions in ABNB and MAR.
Media is running around saying it “500 times” more contagious than delta. That put it at an R0 value of 30, which is impossible for a coronavirus.
It's all to create fear and sadly people buy it. We will see how the markets react on Monday.
The media is essentially lying and speculating about "facts". At this point, it's all BS. It may be bad or it may be no big deal.
We shall see!
I bought a little today, but just what was already sitting in our accounts. If the hysteria continues next week, we will start moving over the big guns to invest.
We rarely mix our cash and investments, but if this becomes a mini March 2020 2.0, we have to take advantage of it.
S&P is down 2% and up 23% YTD. You are acting like it’s the best buying opportunity in years. Talk about hysteria.
+1
I just put in the cash we already had sitting in our E-Trade account (in case this is a one day blip). Normally when the hysteria gets going, it goes for a little while. We shall see about next week!
S&P is still way overvalued. It likely has a good way to drop to a level that's historically sound in terms of p/e ratios. Maybe a 25% or more correction? This new COVID variant shows just how vulnerable and fragile the overall market is. Tapering should come sooner than anticipated, as will raising interest rates. Inflation creeping higher and higher. Next few years may be rough.
No it doesn't. It just shows how irrationally emotional some people are. See Feb/Mar 2020. Any artificial "correction" due to COVID again will result in what happened before. ATH once the FUD dissipates.
I (LB3) also took advantage of some buying opportunities, adding to one position and re-buying 3 previously sold stocks. But I remain highly liquid, and will carefully and gradually put some of it to work if there are more opportunities.
I disagree. "People" are the market. Rationality? Emotion? Well, there's the rub. How rational are current valuations? A hypervalued market got there via people believing values are justified i.e. the promise that earnings/revenues will soon be there. And their belief of future profits continually bid up equity prices. Now, the news of a potential world-impacting variant sparking a market sell off is irrational? No, sir. It's quite rational. You may not agree with the reaction, the sentiment that you identify as "emotion." But profit-taking is sound and rational.
Right so what is the play in the market then?? Cash out all the gains you have made to pay capital gains on them or suffer through the 25% correction? Either way you are taking at least a 20% hit if not more. Where do you park your money for gains elsewhere?
Investing not playing. If your investment timeline is such that you can withstand a downturn (one that may take upwards of a decade to recover), then staying the course may be a sound decision. But not taking profits to avoid capital gains tax? Hmmm. Well, do the math. Always. And explore ways to minimize tax. Always.
As for short-term options, have a look at TIPS.
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Valuations? I'm happy you mentioned that again. The stocks with lower valuations got crushed today and those with high valuations (tech specs) did a lot better, with a bunch going up.
I rest my case.
#irrationalemotions
It depends on your time horizon for your investments. If it's long-term, I wouldn't sell (especially if it's a taxable account) but rather buy the dip and lower your cost basis. Obviously, this is based on your comfort and tolerance. What did you do in Feb/Mar 2020?
Two lessons from Feb/Mar 2020:
1. Irrational fear can seriously tank the market
2. The rebound happens extremely quickly and those on the sidelines can miss out
Absent a MAJOR COVID outbreak, this market won’t suffer a massive correction. There will be turbulence on days like this, and it may drop another 5-10% due to tax selling, inflation, etc., but there is still too much money continuing to buy the dips. I’ll be the first to admit I was expecting a hefty correction at some point. If so, it won’t be because of COVID. Everyone now knows that the Market would likely just snap back like it did in COVID 2020 and worst case scenario they can hide out in lock-down stocks until the coast is clear. I’d be more worried about a massive correction due to crypto or BTC collapsing.
i held what I already owned and bought into new positions in March/April along with a few that I DAC
I have already read all the information I can on this topic because I want to start my own business. As you can guess, I do not have a financial background. Nevertheless, I would like to be aware of the economic situation of my future business. So I'm going to take a course, and while my business turnover will be small, for the first year, use the platform https://sturppy.com/models/financial-model-for-saas. This option was advised to me by a friend who has been running his own business for a year and a half now.
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That's always a good strategy, especially when the market is artificially impacted.
Think of market volatility like storms. If you get news a hurricane is coming, you don't immediately put your house up for sale, looking to get back in cheaper after it's been destroyed. If your investments are sound, you just ride out the storm. Take some profits in things that have run up, sell losers to get a tax credit, and keep some fresh cash available in case things go on sale.
Some of the jittery investors in this thread always overreact to FUD (even if artificial and temporary). Stick to the plan. Nothing will impact the overall trend of this market until interest rates go up.....and I mean really go up. Not a few cursory quarter points, but 2-3 points in total.
You don't always have to sell your stocks, particularly if you are in it for the long term. Options are an excellent way to play the volatility.
Looks like Jack Dorsey and SQ are going all-in on BTC.
www.cnbc.com
Jack Dorsey's departure from Twitter gives him more time to focus on his passion for bitcoin
Decentralization of power on the internet is a major personal theme for Dorsey.
Chicken littles love their FUD. Let's see if they rule the day. Pfizer insiders seem to be thinking the opposite (boosted vaccines will be fine and the new variant is less severe, just like Delta).
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