With the stock market plunging. . .

[Luvtoride]

I would like to see credit card interest rates decrease, as a result of this poor economy. I would like to see them lower the rates from 22% to about 5% for people who owe money and cannot get caught up. This isn't a position I am in, but I see it as a major roadblock for many low-middle income people.

As "nice" a gesture as that is, it just won't happen. I believe the only relief that some of these companies may provide is elimination of late payment charges and some interest charges to those who can't pay their bills due to financial hardship of losing jobs and income during this time.

 

[Fredflintstone]

As "nice" a gesture as that is, it just won't happen. I believe the only relief that some of these companies may provide is elimination of late payment charges and some interest charges to those who can't pay their bills due to financial hardship of losing jobs and income during this time.

I agree. The profit on the interest rate is too large to give up.

I can certainly see why some think the unemployment numbers are concerning. It was 3.2 million in just one week. Sadly, this will end up being a domino effect as this dragged on. Our economy is so interdependent. If one fails, many suffer like the suppliers and those servicing the failed business. I know new industries will come to the rescue somewhat like delivery services. I think Walmart and Amazon are hiring now. However, those jobs are low paying and dead end.


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[davidvel]

These past three days may be a dead cat bounce, only time will tell, but 20-30% up from Mondays close in some sectors is welcome. I just sold two holdings near the high for the day to sell into the rally....still well below B/E on both, so I will look to buy back in lower on the next sell off....or shift into something else. You have to be nimble in this, and that's easier said than done.

When you say breakeven are you talking from the top of the market (DOW 30K), or what you bought in for? I can't imagine you bought all (or much of) your stock in February.

 

[Brett]

The stock market, previously described as a "twitching corpse" is showing some signs of life in the past couple of days

 

[Ken555]

The stock market, previously described as a "twitching corpse" is showing some signs of life in the past couple of days


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My opinion is that it will take another giant hit when the reality of 100,000 deaths in the US is realized. But of course, the market is based on perception so I could be wrong.


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[Chrispee]

My opinion is that it will take another giant hit when the reality of 100,000 deaths in the US is realized. But of course, the market is based on perception so I could be wrong.

I agree wholeheartedly. When the US starts seeing the healthcare system overwhelmed and people dying due to lack of equipment and capacity the markets will take another plunge. That spike in deaths should be short-lived, but it's coming.

 

[geekette]

My opinion is that it will take another giant hit when the reality of 100,000 deaths in the US is realized. But of course, the market is based on perception so I could be wrong.

I agree with you completely. The market runs on fear and greed. The fear will be enormous as reality continues to unfold.

While I of course wish no one harm, there will be big wigs at massive companies impacted in that giant number. That will double whammy perception of that company and others.

 

[Brett]

Lot of negativity going on

 

[Brett]

now a couple of months later ....

https://www.nytimes.com/2020/06/05/...tion=click&module=Top Stories&pgtype=Homepage

“The stock market is amoral; always has been,”

"The market is focused, as always, on one paramount concern: profit."

"the stock market is ignoring a great deal and anticipating a better future."

 

[davidvel]

Looking back at some of the fortune telling in this thread confirms why I'd never go to a fortune teller.

 

[queenofthehive]

Looking back at some of the fortune telling in this thread confirms why I'd never go to a fortune teller.

I blame the press. Fear mongers they are....

 

[Icc5]

Right now I'm only down about $80,000 from our all time highs (on paper,haven't bought or sold recently) which includes investment account,2x 401'ks and 2 Roth's. Not bad since at one point they were down almost $800,000.

 

[bbodb1]

Right now I'm only down about $80,000 from our all time highs (on paper,haven't bought or sold recently) which includes investment account,2x 401'ks and 2 Roth's. Not bad since at one point they were down almost $800,000.

While I only look at our investments periodically, on my last check I believe all of our accounts were back to within 1 to 2 percentage points of flipping from negative for the CY to positive for the CY.

 

[PigsDad]

“The stock market is amoral; always has been,”

"The market is focused, as always, on one paramount concern: profit."

"the stock market is ignoring a great deal and anticipating a better future."

Since the stock market is a forward-looking indicator, these quotes make sense to me.

Looking back at some of the fortune telling in this thread confirms why I'd never go to a fortune teller.

Yep, I'll admit my prediction of DJIA bottoming out around 15-16K was off by quite a bit (thankfully!).

Overall, I am only down about 8% from my high early this year. That's not bad, considering I am 95+% in equities. Now we will see if there is another correction of this rally before the end of the year.

Kurt

 

[Luvtoride]

It has certainly been quite a ride which NO ONE predicted bouncing back this fast by 2Q.

My 401k is within 2.5% of its high this year (albeit with add’l contributions and employer match).

Some mutual funds I bought near the low in March are up 25% since then as of yesterday’s close.

We’re meeting with our Financial Advisor on Monday (arranged quite a while ago) to review his recommendation for our retirement financial plan (we’ve been working with him for months to get to this point). Will be interesting to see how he wants to position our assets for future market volatility based on our risk tolerance (moderate). Will keep you posted.


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[TravelTime]

Our main portfolio has now passed its pre Covid high. I haven‘t checked our 401Ks and other holdings but I assume they have come close to recovering by now.

The government released a positive jobs report today. It seems like the economy is already recovering and had the biggest job gain in many years (given that it is measured by the last two most terrible months in history). Unless we have a second Covid wave, the worst could be behind us. Maybe the economy will fix itself but if not more stimulus programs will be coming (they are talking about another $3 trillion in stimulus). The stock market recovered first because it always leads the main street recovery, sometimes by years. So things are looking much better now economically but I still think we have a long economic recovery ahead of us. Hopefully the government can put better policies in place so that a second Covid wave does not require mass shutdowns again.

I was always against the mass shutdowns. It was like a sledgehammer approach. I thought we should have had targeted shut downs, mass testing, quarantine the sick and most vulnerable, social distancing for all, and contact tracing (and hopefully a vaccine and treatments are on the horizon). I am fine with wearing a mask even though I am skeptical that masks work.

I am excited to follow the per capita testing data by country. The USA is testing more per capita than many Asian countries, Germany, Canada and New Zealand, and the USA is not too far behind Australia, Singapore and the major European countries. Maybe in Covid wave 2, we won’t need mass shut downs again and the economy will continue to recover. I hope the government learned from Covid wave 1.

I must say that the federal small business loan program has been a savior for my business. For that, I am very grateful. After 2.5 months of near economic destruction, we are finally seeing an uptick in business even though we are still shut down and all employees are still working from home.

I pray there will not be a Covid wave 2 of mass illness and death and we will not need to do another massive shut down.

 

[Brett]

My stock portfolio is back to pre-pandemic levels

still periodically re-balancing from equities to fixed income

 

[bbodb1]

My stock portfolio is back to pre-pandemic levels

still periodically re-balancing from equities to fixed income

Along the lines you mention @Brett several months ago, our financial advisor recommended rebalancing our portfolio ahead of the uncertainty that usually occurs around a presidential election. That action was done and in light of events since then, it turned out to be a stroke of good luck.
Your point made me think about when it might be safe to resume an approach leaning more toward equities - and wondering if that day has already come given the market's performance of late.

 

[Brett]

Along the lines you mention @Brett several months ago, our financial advisor recommended rebalancing our portfolio ahead of the uncertainty that usually occurs around a presidential election. That action was done and in light of events since then, it turned out to be a stroke of good luck.
Your point made me think about when it might be safe to resume an approach leaning more toward equities - and wondering if that day has already come given the market's performance of late.

My re-balancing from stock index funds to fixed income for an optimum "risk-reward ratio" is age related
- not predicting the up or down direction of the stock market

https://www.fool.com/investing/how-and-when-you-should-rebalance-your-portfolio.aspx

 

[Patri]

I am smiling after my monthly report, opened yesterday with baited breath.

 

[am1]

Way overvalued with the uncertainty. Not out of the woods yet with the virus.

 

[rickandcindy23]

I am smiling after my monthly report, opened yesterday with baited breath.

Good news for all of us. Our Roths and Rick's 401K haven't lost as we assumed they would. I was also hesitant to look. We may have to take some out to pay MF's next year, and we have had very few vacations. Three cancelled, so far. I assume our late August to Maui will also not happen.

 

[Snazzylass]

Way overvalued with the uncertainty. Not out of the woods yet with the virus.

Um, agreed. Overvalued translate to very fragile. All the government propping up has just kicked the can down the road, in my opinion.

 

[bluehende]

One of the things kicking around in my head is how much of valuation is due to no other options. Yesterday we had a cd mature and the new rate would have been 0.25%. With no place to stash cash other than cash it props up the market. I am in the very over valued camp and only made 1 small buy near the bottom. If you only knew where that bottom was. That buy was pushed out 3% below the current levels. Like others my accounts are very near that old high. I am shocked but this is not the first time the markets have fooled me.

 

[Brett]

Way overvalued with the uncertainty. Not out of the woods yet with the virus.

Um, agreed. Overvalued translate to very fragile. All the government propping up has just kicked the can down the road, in my opinion.

Most stocks are still down this year, some by 20% or more. The total stock market includes Amazon, Facebook, Google, etc. that are up significantly
WSJ June 6