DOW 30000

Old Man Jingles

Rat out of a cage
So do you believe that after the virus scare abates, the market will come roaring back? What if it’s real and causes real economic downturn? How long do you think it will take to rebound?
I'm confident it will rebound by June or so.
I'm not going to be greedy and try and pick the very bottom ... not to mention wrong.
Investors are always looking for a 10% correction when they are sitting on cash like I am.
 

DriveInDriveOut

Inordinately Right
Don’t know or care, but your reputation does precede you.
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bbsam

Moderator
Staff member
I'm confident it will rebound by June or so.
I'm not going to be greedy and try and pick the very bottom ... not to mention wrong.
Investors are always looking for a 10% correction when they are sitting on cash like I am.
What makes you confident of the timeline? I’m certain it will rebound in time but June seems fairly fast.

Normally I’d think that the market is being irrational but trading has a different daily trend. In the past on down days, in the last hour you could see an uptick of buying and a feeling of confidence. Now it seems in the last hour investors have no confidence and seem to be selling off in expectation of further losses.
 
What makes you confident of the timeline? I’m certain it will rebound in time but June seems fairly fast.

Normally I’d think that the market is being irrational but trading has a different daily trend. In the past on down days, in the last hour you could see an uptick of buying and a feeling of confidence. Now it seems in the last hour investors have no confidence and seem to be selling off in expectation of further losses.
Part of the problem with the market dropping at the last minute is that fund managers have to sell more shares of stock to cover people cashing out.
 

Old Man Jingles

Rat out of a cage
What makes you confident of the timeline? I’m certain it will rebound in time but June seems fairly fast.

Normally I’d think that the market is being irrational but trading has a different daily trend. In the past on down days, in the last hour you could see an uptick of buying and a feeling of confidence. Now it seems in the last hour investors have no confidence and seem to be selling off in expectation of further losses.
This is selling based on fear and uncertainty ... nothing has significantly changed.
The FPE (Forward Price to Earnings) is going down right now because short term earnings will be down.
As soon as this scare is over and Supply Chains start to ramp up, the FPE goes up and therefore, stock prices go up.
 

bbsam

Moderator
Staff member
Part of the problem with the market dropping at the last minute is that fund managers have to sell more shares of stock to cover people cashing out.
That’s a lot of selling off and not a lot of confident money coming in behind. And of course the stock market isn’t the economy, but if it’s true that manufacturing and transport from China is shutting down, that’s huge for the world economy. How long will companies have to be in a holding pattern? I imagine some will go under.
Just seems like this kind of slowdown could take a long time to pull out of.
 

bbsam

Moderator
Staff member
This is selling based on fear and uncertainty ... nothing has significantly changed.
The FPE (Forward Price to Earnings) is going down right now because short term earnings will be down.
As soon as this scare is over and Supply Chains start to ramp up, the FPE goes up and therefore, stock prices go up.
Maybe. But this is happening at a time when China’s economy has been slowing. Nothing in a vacuum.
 
That’s a lot of selling off and not a lot of confident money coming in behind. And of course the stock market isn’t the economy, but if it’s true that manufacturing and transport from China is shutting down, that’s huge for the world economy. How long will companies have to be in a holding pattern? I imagine some will go under.
Just seems like this kind of slowdown could take a long time to pull out of.
This will definitely thin out the weak companies.
And this sell off is also the one negative thing about index funds. Unlike managed funds that can keep cash on the sidelines , index funds don't
 

Old Man Jingles

Rat out of a cage
Maybe. But this is happening at a time when China’s economy has been slowing. Nothing in a vacuum.
Actually, supply chain companies are actually increasing their output in China ... that was one of my inputs into this decision making process.
China's GNP or economy is not important to supply chain needs in the US.
Even if it goes down another 10%, I'll be OK with my decision 5 years from now.
 

DriveInDriveOut

Inordinately Right
What makes you confident of the timeline? I’m certain it will rebound in time but June seems fairly fast.

Normally I’d think that the market is being irrational but trading has a different daily trend. In the past on down days, in the last hour you could see an uptick of buying and a feeling of confidence. Now it seems in the last hour investors have no confidence and seem to be selling off in expectation of further losses.
I'm sure it doesn't have anything to do with the Communist Democrat presidential nominee promising a government takeover of huge industries and imprisoning leaders of fossil fuel companies.
 

bbsam

Moderator
Staff member
I'm sure it doesn't have anything to do with the Communist Democrat presidential nominee promising a government takeover of huge industries and imprisoning leaders of fossil fuel companies.
You think that’s what has the market flailing? Ok. Nothing else? Really?
 
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