Stock Market Impact

[JackDW]

First, this is just my opinion and I am not even close to an expert. This is just what how I see things.

When the coronavirus first starting showing up, I noticed that the Stock Market continued to claim to higher and higher levels. That was when I transferred most of my investment into safer funds.

It was immediately after the report of the Russian and Saudi price war that the stock market started to plunge (along with oil prices). I commented at that time that is was curious how the oil prices seemed to start the stock market plunge and NOT the coronavirus.

Now, it appears that the stock market is on its way back up. Surely not related to the coronavirus since that is still going on and having more and more impact on the economy. But, there have been movement on the Russia/Saudi oil production issue. So, it appears that oil prices have a MUCH stronger influence on the stock market that any impact from the Coronavirus.

Just something that I noticed and wanted to point out. I may be totally "off base" but so far, this seems to be the pattern.

 

[DrHenley]

Oil was a big factor. But not the only one.

 

[LiveTrap]

I feel both contribute, but the general public is much more concerned about the virus than the price of crude oil. I put in an order to buy, half my little bank roll a week ago, over the weekend and the other half on the next day, Monday night, when the DJIA jumped up 1600 points. I consider this a "once in a lifetime opportunity." I've been doing very well. I am up 18% in 5 and a half days. I feel confident that the economy will be back to normal a year from now at the most. When the stocks I've picked reach where they normally ran in the past, I'll be up 170% above where I started. I have "stops" in Ameritrade to keep from losing it all in a sudden down turn, so I'm not worried. I certainly am no financial expert, so take this all with a grain of salt, but here is what I bought. HT, KSS, JACK, OXY, R, BUD, UA, AAL, DAL, SIX I guess it depends on whether you think this is the new normal, or just one of lifes' tougher times. I believe we'll get through it without falling into a depression.

 

[TexasFreedom]

It's all guesses. Some are predicting a "U" shaped recovery. Some a "V". One fellow predicted an "L" shaped recovery. Call that a big depression.

What's the best way to end a depression? WAR. Plan accordingly.

 

[Jayson]

What's the best way to end a depression? WAR. Plan accordingly.

DEATH is the equation.

War = old politicians lie + young men die

 

[BillMasen]

DEATH is the equation.

War = old politicians lies + young men dies

But WAR is also frequently used to divert public attention away from domestic problems by finding a boogeyman to blame.

 

[Brent S]

Trading stocks is akin to gambling. In the tumultuous times we are in its way too risky for me. Luckily I parked 90% of my retirement savings into a holding account at the start of this mess. The remainder is in a low risk mutual fund that is down but not terribly. I don’t expect we are at the bottom just now. The stimulus helped prop up the markets, but it was a bandaid at best. When we reopen the world and see how many of the 40 some odd % of small businesses that don’t open back up we will see where we are economically.

 

[BillMasen]

My own knowledge of FINANCE and INVESTMENTS is limited, All I know is that regarding my modest savings is if INFLATION is LOWER than the INTEREST RATE that good and leave well alone. BUT if Inflation is HIGHER than Interest rates then your money is becoming less valuable being left in the bank and is better off being spent.

 

[Brent S]

My own knowledge of FINANCE and INVESTMENTS is limited, All I know is that regarding my modest savings is if INFLATION is LOWER than the INTEREST RATE that good and leave well alone. BUT if Inflation is HIGHER than Interest rates then your money is becoming less valuable being left in the bank and is better off being spent.

Well said. The value of most currencies will likely drop as more businesses close. This is one of the things that motivated me to go ahead with gathering the solar components for my house here. I’ve read about too many countries with terrible inflation and cash that’s worthless. I’m certainly not recommending spending your life’s savings, but diversifying some of it into some tangible things makes sense to me right now.

 

[Brent S]

Trading stocks is akin to gambling. In the tumultuous times we are in its way too risky for me. Luckily I parked 90% of my retirement savings into a holding account at the start of this mess. The remainder is in a low risk mutual fund that is down but not terribly. I don’t expect we are at the bottom just now. The stimulus helped prop up the markets, but it was a bandaid at best. When we reopen the world and see how many of the 40 some odd % of small businesses that don’t open back up we will see where we are economically.

To clarify the statement above, the total number of all businesses in the US is made up of 40% + of small businesses. It’s a huge part of the overall economic engine driving the economy.

 

[LiveTrap]

This is not my 401K that I'm toying with, just a fund that was earmarked for some home remodeling projects that we can live without. Irregardless, I don't think I can lose it, as I go in every couple days and adjust my "market stop to sell" order so that if the price drops off on any of these stocks more than a couple percent, it automatically sells. But who knows, I'm new at this. Six months will tell. Would like it to produce enough before I retire in a couple years, to pay for half of a new pickup truck.

 

[GeorgiaPeachie]

Well said. The value of most currencies will likely drop as more businesses close. This is one of the things that motivated me to go ahead with gathering the solar components for my house here. I’ve read about too many countries with terrible inflation and cash that’s worthless. I’m certainly not recommending spending your life’s savings, but diversifying some of it into some tangible things makes sense to me right now.

Can you share what you used to put together your solar system and how much power it has?

 

[Brent S]

This is not my 401K that I'm toying with, just a fund that was earmarked for some home remodeling projects that we can live without. Irregardless, I don't think I can lose it, as I go in every couple days and adjust my "market stop to sell" order so that if the price drops off on any of these stocks more than a couple percent, it automatically sells. But who knows, I'm new at this. Six months will tell. Would like it to produce enough before I retire in a couple years, to pay for half of a new pickup truck.

There is no doubt money can be made even now in the stock market. I have considered buying on the days it drops and selling in the upswings. Just know that right now with all the volatility it isn’t wise to risk any monies that you couldn’t live without.
A few years back I did some day trading and made several trades that made better than a grand each. I was thinking this is too easy and I should quit my job before long. Well, I then bought Bethlehem Steel. It was coming out of restructuring and was supposed to do great. Short story is it didn’t do well and tanked.... I actually only lost close to everything I had gained so far but it taught me a valuable lesson. It isn’t much different than rolling dice in Vegas. There have been many millionaires made in the market, but many paupers too.

 

[DrHenley]

I was doing pretty well until I tried following advice from The Motley Fool web site. Everything they said to buy tanked. Took a long time to dig myself out of that hole.

 

[Brent S]

Can you share what you used to put together your solar system and how much power it has?

Glad to hear from you GP. Hope your feeling better. So far I have only ordered the panels. It was 20pcs of 250w panels. I am still working on research for the batteries, charge controller and inverter. I found the panels for 2500. On eBay which included shipping. I will post as I go further with this project. I expect to spend another 3000. But that all depends on the choices. I am doing a 5000w system to run my fridge, freezer and some light circuits. I can run more than this but wanted to have some leeway. Of course any system is expandable too. One of the things I’ve leaned about solar is when you are using it you look at power usage a lot closer than when you’re on the grid. Adjusting your usage is a lot cheaper than increasing your system.

 

[Mountain trapper]

I was doing pretty well until I tried following advice from The Motley Fool web site. Everything they said to buy tanked. Took a long time to dig myself out of that hole.

I dumped them years ago. For that reason.

 

[GeorgiaPeachie]

Glad to hear from you GP. Hope your feeling better. So far I have only ordered the panels. It was 20pcs of 250w panels. I am still working on research for the batteries, charge controller and inverter. I found the panels for 2500. On eBay which included shipping. I will post as I go further with this project. I expect to spend another 3000. But that all depends on the choices. I am doing a 5000w system to run my fridge, freezer and some light circuits. I can run more than this but wanted to have some leeway. Of course any system is expandable too. One of the things I’ve leaned about solar is when you are using it you look at power usage a lot closer than when you’re on the grid. Adjusting your usage is a lot cheaper than increasing your system.

Sage advice as usual Brent! Thanks for sharing. I am doing better, thankfully. Still very tired.

 

[chihuahuasniper]

I've been thinking the lockdowns are just to get our essential services greased up and ready for a war with China. Just my $0.02.

 

[DrHenley]

I've been thinking the lockdowns are just to get our essential services greased up and ready for a war with China. Just my $0.02.

Nobody in their right mind wants a shooting war with China. There would be no winner.

 

[Brent S]

Nobody in their right mind wants a shooting war with China. There would be no winner.

I only hope the powers that be are smart enough to keep this in mind.

 

[Mountain trapper]

Hell we couldn't even win in Afghanistan, Iraq, Vietnam. Who thinks that we could possibly beat China in a shooting war? Our only chance of beating China is to stop buying their crap!!

 

[DrHenley]

Hell we couldn't even win in Afghanistan, Iraq, Vietnam. Who thinks that we could possibly beat China in a shooting war? Our only chance of beating China is to stop buying their crap!!

And the rest of the world too! That will bring them to their knees in more ways than one.

The only reason those billion and a half people put up with the CCP before is because they had steady jobs and made more money and had better things than their parents did. The Chinese value conformity over individuality, but they value money over conformity. Take their money away and you've got a billion and a half angry people!

 

[Mountain trapper]

The Dow is up over 34,000 today. No doubt that there will be a correction coming some day. Until then its been a great ride. Some "experts" are predicting that it'll hit 40,000 this year. Good times financially, while most everything else sucks thanks to the commie democrats. Look for that pot of gold wherever you can.

 

[MOS0231]

Read elsewhere, a third bank has joined in two others a correction will occur within the next three months.

 

[Schattentarn]

There is little or no correlation between Wall Street and Main Street or the price of oil and the price of gasoline

 

[LiveTrap]

I bought the stocks I mentioned on page one. I bought ten stocks at $1000 each, or $10,000. This is my "play account' that keeps me from mucking around in my retirement account. So a week ago, I have been in the account one year, and the yield is 145%, so the account now stands at $24,000. I too am expecting a big correction soon, so I have some more cash and intend on "buying the dip" again. Sure, the money already in there will crash, but it will recover. Just don't panic and sell at the bottom. All that matters is the day you buy, and the day you sell. Everything in between is irrelevant. Also, it was not the stock picks that counted, it was the timing. Almost any well known, long established company would have done this well.

 

[Mountain trapper]

I bought the stocks I mentioned on page one. I bought ten stocks at $1000 each, or $10,000. This is my "play account' that keeps me from mucking around in my retirement account. So a week ago, I have been in the account one year, and the yield is 145%, so the account now stands at $24,000. I too am expecting a big correction soon, so I have some more cash and intend on "buying the dip" again. Sure, the money already in there will crash, but it will recover. Just don't panic and sell at the bottom. All that matters is the day you buy, and the day you sell. Everything in between is irrelevant. Also, it was not the stock picks that counted, it was the timing. Almost any well known, long established company would have done this well.

Good job LT! I've been investing in the stock market for close to 40 years now. I think the Dow was under 6,000 then and gold was around $200-$250 and silver was about $4.00. Over these years my money has doubled and quadrupled many times. Of course there we're times when the markets dropped considerably and I had to really fight the urge to sell and buy instead. I've been investing in gold and silver even longer.
Always look for an opportunity, buy in the dips and don't sell unless you really have to. On 9/11 I bought all the gold that I could afford, and I sold all my stocks and bought defense stocks.

 

[Brent S]

My sister invested 50k in a crypto fund. No Bitcoin, but a mix of smaller cryptos. In one year she has 420k now. That’s a fantastic return. I’ve tried to convince her to lock in those profits now. The fund manager says he will make them millionaires so she will stay in it. I have little doubt there will be a bubble burst before long. If I was 25 yrs old I might let it ride but being closer to retirement I think taking those profits would be a lot wiser.

 

[MOS0231]

My sister invested 50k in a crypto fund. No Bitcoin, but a mix of smaller cryptos. In one year she has 420k now. That’s a fantastic return. I’ve tried to convince her to lock in those profits now. The fund manager says he will make them millionaires so she will stay in it. I have little doubt there will be a bubble burst before long. If I was 25 yrs old I might let it ride but being closer to retirement I think taking those profits would be a lot wiser.

I have looked into it,but if you flip a switch or EMP/CME/cyber attack on the grid, does it exist?

 

[Brent S]

I have looked into it,but if you flip a switch or EMP/CME/cyber attack on the grid, does it exist?

I don’t see it as a good investment any longer, but it sure was if you caught it early on. As far as a major disruption like an EMP or such, most investments would be hit hard as well. Wealth can be lost in many ways. i do think crypto will eventually replace the paper money though. Most transactions are allready electronic with credit and debit cards and I’m sure the government will like having more control over access to everyone’s money.