With the stock market plunging. . .

[Rolltydr]

ugh ... another ugly day on the "street"

View attachment 18065

Not taking any chances, huh, Brett?


Harry

 

[Brett]

Not taking any chances, huh, Brett?


Harry

I take 'chances' every day !
.
But I've been moving $$ from low cost index funds to fixed income each month since Nov 2016
I didn't know how it would end ..... just gotta be prepared

 

[Rolltydr]

I take 'chances' every day !
.
But I've been moving $$ from low cost index funds to fixed income each month since Nov 2016
I didn't know how it would end ..... just gotta be prepared

So true. You never know when it all might be erased!

 

[bogey21]

With oil at 20 bux a barrel, Canada is really in a world of hurt.

As are the "frackers". My Son works in the Permian Basin. I gather from what he tells me is that the big guys with plenty of cash and little debt have stopped drilling. The small Independents who are leveraged with a lot of debt have to keep drilling to pay their debt service. To realize any profitability at all they negotiate lower fees from the Service Companies (where my Son works) who have an incentive to work with them to keep from having to lay off their crews. In short everyone is sharing the pain...

George

 

[Panina]

Sadly, I think you might be right. I suppose it all depends in truly how bad this problem is. They are sure treating it like an apocalyptic problem. Shutting everything down for months could make this a depression and if that happens, we could see 2009 Dow. The problem here is governments, corporations and individuals went debt crazy which means few bullets to address the problem, individuals one pay check from doom and risk of financial collapse as defaults skyrocket.

I never thought a virus could potentially destroy our economies.

I was lucky in one way, my FAs did put 40 percent of my holdings in early February based on them seeing cracks in the economy (not because of this virus) which has kept the losses at 15 percent. I am now glad they did that even though it’s still a train wreck.

I still see in 5 years, it will recover if one is well diversified.

The travel industry is in real hurt. Hilton is shutting down many hotels. I can see major pops in MFs to try to survive if this keeps going.

With oil at 20 bux a barrel, Canada is really in a world of hurt. Economic collapse is a real possibility as we are in debt and rely on natural resources that are either collapsing in price or not needed as manufacturing is stopping. Plus, governments are injecting money we don’t have to try to mitigate the collapse. I can see the US recovering better because of its huge, diversified economy.


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I don’t think it will take five years, Imo two years at the most. One year to start seeing good progress. I do agree US will recover better. I can see that infrastructure package occurring. What’s another trillion dollars to the debt at this point. Now if that isn’t dealt with in the next five years that could be the cause of a real collapse.

 

[Fredflintstone]

I don’t think it will take five years, Imo two years at the most. One year to start seeing good progress. I do agree US will recover better. I can see that infrastructure package occurring. What’s another trillion dollars to the debt at this point. Now if that isn’t dealt with in the next five years that could be the cause of a real collapse.

2 years is typical like 2000-2001 or 2008-2009. However, this one seems more damaging to me. Businesses are being forced to shut down versus businesses operate in a slower environment. I suppose if this is no more than 60 days, it may recover in 2 years. However, I have been getting reports that this could last 6 months to one year at the outset. If that happens, the economic damage is incalculable.


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[Passepartout]

As are the "frackers". My Son works in the Permian Basin. I gather from what he tells me is that the big guys with plenty of cash and little debt have stopped drilling. The small Independents who are leveraged with a lot of debt have to keep drilling to pay their debt service.

The tanking of the fuel price has messed up my favorite sector which is the electric cars. Nothing would help them as much as $5.00+ gasoline. But it's a segment I have no control of. So be it. For the last half a year, we've only been buying about 15 to 20 gallons of gas a month.

Jim

 

[Luvtoride]

We’re meeting with our FA tomw night ( was arranged late Feb just as all hell was breaking loose). He said he has some good ideas for us that we will like. We are fortunate that we are about 3 years away from retirement and both have pensions. Will be interesting to get his perspective and thoughts on how far this sets us back (if at all) from the rosy picture we had seen last month. Keeping my fingers crossed.
BTW, I wouldn’t sell a thing right now and lock in these losses.


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[Panina]

2 years is typical like 2000-2001 or 2008-2009. However, this one seems more damaging to me. Businesses are being forced to shut down versus businesses operate in a slower environment. I suppose if this is no more than 60 days, it may recover in 2 years. However, I have been getting reports that this could last 6 months to one year at the outset. If that happens, the economic damage is incalculable.


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Yes more damaging but once over the mindset will be different then those years. This didn’t happen because of bad times, which is a major difference. There will be many businesses that close because of this but there will be others that take advantage of the demand and they will take their place. We will talk two years after this ends and see.

I am optimistic. I will compare it to a surgery I had to have that many experience depression after it. I worried about that prior to it and my doctor said “you will wake up and say it is gone and you will be relieved and will be fine”. I was fine in 19 days when most took 3-4 months to recover. I believe when the High risk of this virus is past us, the relief will have us all striving to quickly get back to better times.

 

[TravelTime]

2 years is typical like 2000-2001 or 2008-2009. However, this one seems more damaging to me. Businesses are being forced to shut down versus businesses operate in a slower environment. I suppose if this is no more than 60 days, it may recover in 2 years. However, I have been getting reports that this could last 6 months to one year at the outset. If that happens, the economic damage is incalculable.


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I agree. This seems much worse than previous recessions. I think this could turn into a depression. Everyone is getting hit. Businesses have started layoffs already. Everything is shut down. How can an economy survive this for very long?

 

[Fredflintstone]

We’re meeting with our FA tomw night ( was arranged late Feb just as all hell was breaking loose). He said he has some good ideas for us that we will like. We are fortunate that we are about 3 years away from retirement and both have pensions. Will be interesting to get his perspective and thoughts on how far this sets us back (if at all) from the rosy picture we had seen last month. Keeping my fingers crossed.
BTW, I wouldn’t sell a thing right now and lock in these losses.


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I agree. I wouldn’t take the losses either. This will pass at some point.

My lesson here is when some strange disease hits the media, I watch the markets carefully and when I see 1 k or more drops in a day, I sell and wait a bit.

Frankly, I never in my wildest imagination would think a virus would inflict this much damage. If I saw something like the plague coming and people were dropping in droves, I would think different.


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[Panina]

I agree. I wouldn’t take the losses either. This will pass at some point.

My lesson here is when some strange disease hits the media, I watch the markets carefully and when I see 1 k or more drops in a day, I sell and wait a bit.

Frankly, I never in my wildest imagination would think a virus would inflict this much damage. If I saw something like the plague coming and people were dropping in droves, I would think different.


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People are acting like this will go on until we are all gone. I think the TP buying frenzy was the clue to sell.

 

[Fredflintstone]

People are acting like this will go on until we are all gone. I think the TP buying frenzy was the clue to sell.

I suppose even though it’s a respiratory illness primarily.

Ok, stocks fluctuate past 1 k Dow, TP and hand sanitizer frenzy...sell ASAP.


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[Panina]

Now this can make it worse and longer to recover

Coronavirus: Asian nations face second wave of imported cases

There is growing concern that people returning home as borders close could bring the virus with them.

www.bbc.com

 

[Fredflintstone]

Now this can make it worse and longer to recover

Coronavirus: Asian nations face second wave of imported cases

There is growing concern that people returning home as borders close could bring the virus with them.

www.bbc.com

You know, when I see this unfolding, the advice Dave Ramsey provides gets even more powerful. That being

Get out of debt
Live below your means
Save, save, save
Have 6 months emergency cash.


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[Panina]

You know, when I see this unfolding, the advice Dave Ramsey provides gets even more powerful. That being

Get out of debt
Live below your means
Save, save, save
Have 6 months emergency cash.


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Unfortunately most don’t follow that advice even if they have the income to do it.

 

[Brett]

You know, when I see this unfolding, the advice Dave Ramsey provides gets even more powerful. That being

Get out of debt
Live below your means
Save, save, save
Have 6 months emergency cash.


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I'm not sure I would follow all of Dave Ramsey's recommendations !
https://en.wikipedia.org/wiki/Dave_Ramsey

for sure, minimum debt, having emergency cash and living "below your means" is sound advice

 

[mjm1]

Dave Ramsey offers a lot of good advice, but not everything. Ironically, he recommends never own a timeshare. One of the timeshare exit companies advertises on his radio show too. That’s another topic.

Best regards.

Mike

 

[dagger1]

As are the "frackers". My Son works in the Permian Basin. I gather from what he tells me is that the big guys with plenty of cash and little debt have stopped drilling. The small Independents who are leveraged with a lot of debt have to keep drilling to pay their debt service. To realize any profitability at all they negotiate lower fees from the Service Companies (where my Son works) who have an incentive to work with them to keep from having to lay off their crews. In short everyone is sharing the pain...

George

Oilfield service companies are getting creamed right now. Check out Halliburton at $4.50/share and Schlumberger at $12/share.... These are fire sale prices. Those little independent oil companies with huge debt can’t service it with $24 bbl oil. They are paying to drill. And the drilling is the cheap part. The completion (fracking) is where the real expense is...

 

[Brett]

another brutal day / week on the "street"

... worse than 2008 ....

 

[Fredflintstone]

another brutal day / week on the "street"

... worse than 2008 ....

View attachment 18119

I hope business shutdowns don’t last or this thing will ️️️


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[Panina]

another brutal day / week on the "street"

... worse than 2008 ....

View attachment 18119

Yep and hold on, as the numbers go up in the US many brutal days might follow .

 

[Brett]

I hope business shutdowns don’t last or this thing will ️️️


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yes, I hope there won't be "Hoovervilles" like in 1930
but (of course) they won't be called 'hoovervilles' .......

 

[geekette]

Boeing cut its dividend, suspends buybacks, and both CEO and Chairman will forgo pay this year.

Stock price off a cliff.

I've owned it since mid 2010, holding. It's not into loss territory for me yet, since I bought so long ago, so much cheaper, but will still hold.

My first div loss of The Pandemic Era.

 

[Brett]

Boeing cut its dividend, suspends buybacks, and both CEO and Chairman will forgo pay this year.

Stock price off a cliff.

I've owned it since mid 2010, holding. It's not into loss territory for me yet, since I bought so long ago, so much cheaper, but will still hold.

My first div loss of The Pandemic Era.

and it probably won't be your last dividend lost in the "Pandemic Era" - Ford and other companies are suspending quarterly dividends