Dow futures drop nearly 700 points as coronavirus spread stirs fears of global economic impact

My institution is currently preparing for the utmost worst case scenario. Chidren's hospital (share the same campus as us) have been doing dry runs of transporting and moving infected patients through a quarantine zone. Spooky watching them transport people while in full hazmat attire. Only drills as of yet.

Is the killer coronavirus now disease X? World Health Organization expert warns the infection is 'rapidly' fitting category for the mysterious pathogen scientists fear will kill 80million

 

They (my fund managers) seem to either be more in tune with market forces or have preset protections in place (is there a term for that?)

Even when the market does dip my funds don't seem to dip as much and come back stronger on the back end. I certainly know that they are better at it than I am, I was the worlds worst stock trader ever when I tried to self manage with individual stocks, I had quite a knack for picking companies that drop and keep dropping. Someone could have made a lot of money by just shorting my picks, so after losing way too much trying it on my own, I went back to funds and just keep my fingers crossed.

 

If it would just drop 23% tomorrow, like Black Monday 1987, I'd sell the house and everything but one vehicle and the teardrop camper and we'd put it all in the stock market and live rough for awhile. Well, I can hope.

 

I at least got one of my RMD's out.

 

Any type of influenza is transferable through air droplets, not only the coronavirus. The flu rarely gets the sort of headlines an outbreak like the coronavirus does, despite killing more Americans each year than any other virus, and Americans do not seem to be particularly worried. This 'market correction' is fear-based and has been primed for a correction for months and has nothing to do with the coronavirus. We need to remember that analysts predicted a market correction long before this virus emerged from China.

That real culprit is market sentiment: Short-term stock market timers, on balance, have been extraordinarily bullish for a couple of months now. Stocks can't always be good and going up day after day, year after year. Even a few days of such excessive bullishness would normally lead to market weakness, much less a few months of such exuberance. So conditions were ripe for a pullback.

If it weren’t the coronavirus, in other words, something else would have been the straw breaking the camel’s back.

 

Oh my, that was a fun little session, eh.

Still way too much uncertainty around this thing (COVID-19) to deploy any "dry powder" during today's bloodbath.

There's clearly a possibility that things could get much worse...

https://www.marketwatch.com/story/i...on-is-almost-certain-2020-02-24?mod=home-page


Just gunna have to sit tight and see how things play out this week...

 

DOW closes down by 3.5% or 1029 points,Oil sector down by quite a bit as oil falls due to lack of worldwide demand because of coronavirus.Travel curtailed worldwide, cruise ships and freight carriers confined to ports, airlines bookings collapsed as demand falls even auto travel well bellow normal.

 

Shhhhhhhhhhhhh................ This will be like buying wrapping paper for 1/2 price on Dec 26th. The one thing grandma knows is that another Christmas will come and more presents must be wrapped.

 

I see your point . It is smart to know what you don't know. I've never tried market timing myself, but I was lucky to get very good advise from the bogleheads forum, https://www.bogleheads.org/.

If you have never visited, give it a try. You'll probably get and earful on financial advisers and fund managers as well, mostly because of their high cost, lack of value that they add, and management risk you add to your portfolio.

 

Well, not surprisingly, those that bought yesterday's dip got their asses handed to them by Mr. Market today.

Been lookin' for a sweet spot to add to my positions in MSFT and VDADX … and possibly open a position in AMZN.

But things are still too hot to handle.

The S&P 500 would have to fall below 3,047 or so to be in full-fledged correction … and below 2,709 to enter bear market territory.

Anybody's guess as to how this thing plays out...

 

Warren Buffet agrees, he says the average investor is better off in a stock index fund. Here's another tip, only look at your portfolio twice a year.

 

We don't agree a lot on politics, but this one I wholeheartedly agree with.

This is my strategy: I never look at my portfolio in down weeks or months. I'll start looking again when the index has surpassed its previous value when I stopped checking. In up weeks, I check every Saturday morning, when the family still sleeps. It has helped me to avoid emotional reactions to market swings. There is a saying in German, Was ich nicht weiß, macht mich nicht heiß, which translates to: What the eye does not see, the heart does not grieve over.

 

During the Chinese Quarantine, many businesses could end up in bankruptcy/close forever. There is a risk that all of the investments that were put into a Chinese manufacturing base will be lost. And lost wealth is going to come back to bite us in some form or another.

 

My stocks are surviving. Once the hysteria is over there will be a recovery.

 

Exactly, you haven't lost anything until you sell, which only locks in your losses. Timing the market and chasing trends doesn't work. What if someone sold today, and next week the market recovered those losses?

 

Economic upswings and downturns are predicated upon a plethora of diverse factors, although politicians cannot resist grabbing credit for the former and disavowing responsibility for the latter. Is the unprecedented 10+ years of growth in the US now jeapordized by fear of pandemic? Obviously.

 

Exactly, maybe tell that to some of our conservative friends, who pretend that they know when there are buying and selling opportunities. For example the thread on selling all your stocks and buying gold and sliver if Bernie gets elected......

 

San Diego is opening stadium parking lots for the working poor who live in their cars.

I watch the housing market via Craigslist and Zillow, and I keep seeing the same properties listed over and over with a 3% price reduction every time they are reposted. Some have been on the market for nearly a year.

This economy is not near as rosy as Trump and the Reich Wingers pretend it is.

We are in desperate need of a "correction". That it will come on Trump's watch is just icing on the cake.

And before any Reich Wingers claim I am hoping for a crash because Trump is an idiot, I would make the very same prediction if HRC was in the White House.

 

I suspect that the downturn may continue because worldwide business is at a standstill. Our manufacturing has been declining for most of the past two years and now our service economy is now also declining. We have very low interest rates right now as our 10 year and 30 year bond rates are at all time lows,a great time to refinance mortgages.

 

I bought some Apple right before it dropped. Sad!

Basically they said they wouldn't meet their production goals, it dropped. Then they had a bad financial report, it dropped again. I bought in. Then about four days later it tanked and from what I've read, many people besides me were left scratching their heads.

 

Stock market gamblers will be sharpening their skills to play their usual games of "dead-cat-bounce", and, "catch-a-falling-knife". Nothing new there. And, predictably, the central banks around the world will stupidly be cutting interest rates (again) and flooding the world with even more imaginary money than they already have....

Maybe the important thing to remember here is that the stock markets here in the United States were already tremendously OVERVALUED in the first place -- possibly by a factor of 70%. "Value" was thrown out shortly after 9/11 as the primary consideration for analyzing a stock and replaced by "how much CAN you BORROW".... It was no longer a matter of "what are you worth", but, "how much credit can you get approved for?" And, THEN, if anything happens to cause a 'hiccup' -- it's catastrophe!

This COVID virus will eventually run its course and join the other virus episodes of recent history, like SARS, 'bird flu', etc. After all, the last time a monstrous 'pandemic' really killed a LOT of people was A HUNDRED YEARS AGO, and medical science and medicine is many orders of magnitude more effective now than it was back then. But gullibility and economic stupidity are just as bad now as ever....

 

The economic issues are coming from attempts to contain the virus. There's no need to do that.

 

Investment stupidity is bipartisan.

I would get out of the market if Comrade Bernie is elected, in fact much of the recent market run up this year is due to it factoring in the likelihood of Trump's re-election. Having some of your assets in precious metals is a pretty mainstream position, as opposed to fiat currency backed by what?

 

Waiting for Bernie or the MSM to blame any economic slowdown on Trump once the real debates begin. Let the true dishonest scumbags reveal themselves again.

 

rbis should provide incentives set up shop domestically, or buy domestic materials less chance of supply chain volatility.