Market Meltdown

[seriousplayer]

Whatever you lost, it was painful this past week. At least for anyone in the market. And right after..............I mean RIGHT after it had hit record highs earlier in month. Now I know why stockbrokers jump out of windows.............LOL

I guarantee you that at least one person sold short and made millions during the crash.

[Midwest Player]

Dead cat bounce today. I was tempted to move more of my 401(k) to my stable value fund. If the market is up tomorrow I might do it. I'm not going to sell any of my stocks or mutual funds, but thinking about a realignment of 401(k). I'm way to much in the equity markets for someone my age.

[21forme]

Is today referred to as a melt-up? Or is melt up like front counting?

[Wave]

Is today referred to as a melt-up? Or is melt up like front counting?

Lol!

I'd post a meme, but too many complaints were made to Norm and he told me to quit :-/

Some of the commentators on the business channels have said the drop is not all due to the new bug and is partly due to Bernie's success...I'm really curious to see what happens Tuesday night and Wednesday.

[Sharpe]

Wrong.

You may not have lost the number of shares you hold if you have not sold...OR MADE WITHDRAWALS FROM YOUR ACCOUNTS...but you have lost value on each share you hold. People that are retired and are making monthly withdrawals from their accounts have lost significantly because the fixed dollar amount they withdraw every month ALSO REDUCES THE NUMBER OF SHARES THEY HOLD. If their shares are of less value, it takes more of them to equal the fixed dollar amount they are withdrawing every month. Your statement would only be true at the point which the market value returned AND if you held the same number of shares at that point.

If you are retired and rely on your investments for income, you should not be withdrawing from equities. You should have enough cash, or cash equivalents to cover AT LEAST your annual expenses minus fixed income. The monies to allocate to equities should be money not needed for 7-10 years.

[Sharky]

Is today referred to as a melt-up? Or is melt up like front counting?

No...unfortunately it's the calm before the storm, imo

[Sharpe]

Dead cat bounce today. I was tempted to move more of my 401(k) to my stable value fund. If the market is up tomorrow I might do it. I'm not going to sell any of my stocks or mutual funds, but thinking about a realignment of 401(k). I'm way to much in the equity markets for someone my age.

You really should meet with a CFP professional. Too many financial mistakes are made during bad markets.

[Wave]

If you are retired and rely on your investments for income, you should not be withdrawing from equities. You should have enough cash, or cash equivalents to cover AT LEAST your annual expenses minus fixed income. The monies to allocate to equities should be money not needed for 7-10 years.

Of course, that would be ideal, but not everyone is structured this way. In my case my 401k supplements my pension and I divide it between index funds for stocks, bonds, and T-notes.

[21forme]

You really should meet with a CFP professional. Too many financial mistakes are made during bad markets.

Are you the Sharpe Ratio guy?

[Sharpe]

Are you the Sharpe Ratio guy?

I’m not sure if you’re referring to a previous poster or not but my username is certainly in reference to the sharpe ratio.

[Sharpe]

Of course, that would be ideal, but not everyone is structured this way. In my case my 401k supplements my pension and I divide it between index funds for stocks, bonds, and T-notes.

And that’s fine, if you’re making periodic withdrawals, earmarking at least enough to cover one year of expenses not covered by your pension in T-Notes, or stable value fund to make withdrawals... two years would be ideal. This would reduce the chance of making withdrawals from equities during down markets.

[BJGenius007]

A real buying opportunity..................

But ease in slowly......

It is not a buying opportunity. Based on the evidences,

1. Have seen multiple doctors interviews on TV, ALL OF THEM said they don't have test kits to confirm the cases. Some said CDC asked the doctors not to test cases locally but mailed them to CDC headquarters. A NYC doctor said on CNBC, he has thousands of cases to be tested, but CDC only give him 33 test kits.

2. CDC asked hospitals not to use existent test kits because "they might have flaw or not accurate" and wait for new designed test kits to arrive. But all other nations have been using old designed test kits. They work just fine.

3. Miracles happened twice on stock market. Friday we had last 15 minutes 1000 DOW point gain. Today we also had 1300 DOW point gain.

Right now we had ten thousands if not hundred thousands of tests need to be performed. Yet only tested like a few hundred cases. However on the limited test, we have already found too many infected patients who got the virus about weeks ago and spread the virus freely in the past four weeks.

Conclusion:

Top 1% knows it is bad. They coordinate their efforts to sell their stocks on Friday and today. Then they will let ordinary people know there have already thousands of infected people walking freely for up to one month already. The stock market will collapse again. But top 1% are front runners again and took less damage on their fortune. CDC is also a tool for them to slow down the discovery period.

[Midwest Player]

And that’s fine, if you’re making periodic withdrawals, earmarking at least enough to cover one year of expenses not covered by your pension in T-Notes, or stable value fund to make withdrawals... two years would be ideal. This would reduce the chance of making withdrawals from equities during down markets.

Trouble is when you make a monthly withdrawal from your 401(k) it usually comes out of all your funds in the 401(k) on a percent basis. If your 401(k) is 40% bonds and 60% stocks, the withdraw will be 40% from bonds and 60% from stocks.