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Looks like a wild day in stock market

Dow futures down more than 700

Major fears of virus economic impact

Wall Street panicked about it 2-3 weeks go, then got over the panic. But I think their first instinct was right -- this is going to definitely have economic impact. If it paralyzes world travel and affects China manufacturing and trade, it's going to have BIG economic impact. If it spreads uncontrolled through Europe and the US, it will have very big economic impact.

Vaccines and treatments will be developed and that will lessen the impact, but it takes two years to do that development.

This is not the time to have money at risk that you're going to need the next 3 years and maybe the next 5 years. But really, that should be the rule in general regardless of diseases.
 
stock market is way overvalued right now with a pretty extreme run up the last few years. this is a course correction that everybody knew was coming, just waiting for the catalyst and appears to be coming early as I thought it would fall in line with something happening during the election this year. in the long run, might be a good thing for the USA as if China gets hit pretty hard it will allow for some opportunity to arise elsewhere.
 
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It sure is fun watching Gold go up with each tidbit of bad news, i.e. if you have overweighted gold stocks..... ;):);)
 
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I read, over the weekend, 800 million people are quarantined in China. To put that in perspective, that is 2.5 times the entire population of the USA. With so much now being made and exported from China, there has to be major supply chain problems.
 
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stock market is way overvalued right now with a pretty extreme run up the last few years. this is a course correction that everybody knew was coming, just waiting for the catalyst and appears to be coming early as I thought it would fall in line with something happening during the election this year. in the long run, might be a good thing for the USA as if China gets hit pretty hard it will allow for some opportunity to arise elsewhere.

That isn't true when we consider interest rates. The 30 year bond is at a record 1.8% low -- even below the target inflation rate. That is crazy.

People tend to view stock valuations against historical norms for P/E ratios, but we are far from historical norms with interest rates. Further, public debt is such that interest rates cannot be raised appreciably. It will get worse as the government prints more to prop up the economy.

We might have a major correction with this pandemic, but when that plays out I would expect to be at new highs again provided we don't panic and turn to a socialist government in the forthcoming elections. That would be the real stock crusher longer term.
 
That isn't true when we consider interest rates. The 30 year bond is at a record 1.8% low -- even below the target inflation rate. That is crazy.

People tend to view stock valuations against historical norms for P/E ratios, but we are far from historical norms with interest rates. Further, public debt is such that interest rates cannot be raised appreciably. It will get worse as the government prints more to prop up the economy.

We might have a major correction with this pandemic, but when that plays out I would expect to be at new highs again provided we don't panic and turn to a socialist government in the forthcoming elections. That would be the real stock crusher longer term.

yeah it would suck to tax 4 people and fix three quarters of our problems in the country. Take it to the test board, boomer
 
yeah it would suck to tax 4 people and fix three quarters of our problems in the country. Take it to the test board, boomer


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Who are the four and how much should they be taxed to fix everything (edit: sorry 75% of things)?
 
There is a lot of stupidity to go around. For the record, I support the policies of neither political party. In my view both are wrong, very wrong, but in vastly different ways.

To give you an example of the level of ignorance that is now pervasive in our society, during 2018 my mother, who lives on SS and mutual fund shares, was cursing the POTUS for the drop in value of those shares (as interest rates were increased). She is a lifelong member of the opposing party. Obviously she has no knowledge of the role of central bankers. If she did know how things really worked she would have been damning the Fed for not doing what the POTUS wanted. Instead the Fed merely secured her vote against the POTUS. Ironic.
 
Pretty bold assuming the west *didn't* insert the virus. :)

(adjusts tinfoil hat)
There are two massive bio labs in Wuhan. I think most of us know where the virus escaped from. Its origins are in Canada according to some.
 
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This is not the time to have money at risk that you're going to need the next 3 years and maybe the next 5 years. But really, that should be the rule in general regardless of diseases.

The stock market was due for a correction but I wouldn't run away from sticks completely. Interest rates are at historic lows so where do you invest? Utility dividends are over 4%. ATT 5.4%. Many over 3%.
 
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There is a lot of stupidity to go around. For the record, I support the policies of neither political party. In my view both are wrong, very wrong, but in vastly different ways.

To give you an example of the level of ignorance that is now pervasive in our society, during 2018 my mother, who lives on SS and mutual fund shares, was cursing the POTUS for the drop in value of those shares (as interest rates were increased). She is a lifelong member of the opposing party. Obviously she has no knowledge of the role of central bankers. If she did know how things really worked she would have been damning the Fed for not doing what the POTUS wanted. Instead the Fed merely secured her vote against the POTUS. Ironic.
Good lord, is your mom my grandmother? Sounds exactly like her... if so, hi dad....
 
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Seems to me virus is being used to cover real fear. The Fed funds market has been pricing in TWO freakin rate cuts this year. Expectation started weeks ago. Why? We have 3.5 unemploy and Dow 29k. Fed's Clarida said on Thurs that traders will be disappointed by expectations and Fed is not a slave to market expectations. Stock market started drifting down. Fed had been bailing out repo and doing stealth QE for 6 mos. Now saying it will end after April. This appears to be real reason, though I bet Fed capitulates. Watch this going forward. Markets trying to pressure Fed into further cheap liquidity to keep bubble going. Sad.
 
Good lord, is your mom my grandmother? Sounds exactly like her... if so, hi dad....

Let me put your mind at ease. It is not possible for me to be your father.

Unbelievable how easy it is to manipulate the thinking of people isn't it? And their vote counts just as much as yours.
 
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