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

Classic "dead cat bounce" early in today's session … then, not surprisingly, traders and investors got spooked again.

Wouldn't be surprised if we see more short-lived rallies in the coming days.

But I doubt the market can move sustainably higher till we get more clarity on how badly this thing (COVID-19) is impacting global economies.

No choice but to keep that "dry powder" in bond funds and cash for now...

 

I agree with the first sentiment.

As to Bernie, it seems that your political and ideological emotions are stronger than your investment convictions. Staying the course is the only way, don't be foolish and let the RW media scare you out of future investment gains.

As to gold: I have it at about 1.5% of my portfolio. The other poster talked about going ALL in gold and silver if Bernie was elected. There is a difference.

 

It isn't me, the market would react very badly if Bernie was elected, just as it reacted positively when Trump was. Don't fight the trends.

Staying the course here.

IMHO 5-10% PMs is the way to go. There are other options if one wants out of the stock market, such as bonds and real estate. There are some very easy ways to invest in real estate without getting your hands dirty and see 15-20% returns.

 

Except that selling if Bernie gets elected isn't staying the course. You have pre-determined that the markets will crash if Bernie gets elected without any evidence for it. You'd be better off not letting political emotions get the better of you.

I posted a thread on this topic in 2017, might be an interesting read:

http://www.politicalforum.com/index...-stock-market-economy.516266/#post-1068116581

As to real estate, I invest in Tiaa TREA. After a dip in 2008-09, it has been good to me since the great recession.

 

My assumption is that Trump will be re-elected. It isn't emotion, it's fact, more taxes and regulation tank the economy. I spoke to developers all during Obama's time who did nothing because of the uncertainty.

You can do about three times that good, google Crowdstreet. You have to be an accredited investor though.

 

Time to buy! Always buy on fear!

 

Are you still spamming threads with the same naive follow the herd behaviour? I'll post again: It might go up, it might go down. So no different to any other time

 

Right now it is going down due to fear.....when fear drives the market down it is time to buy!

 

That's not a fact, that's your opinion.

20% return on investment? Really? Things that look too good to be true usually ARE too good to be true. Ask yourself the question: Why would anyone invest into the stock market, when they could make triple the return in crowdfunded real estate? Answer: Because of risk. You can get a mortgage at 3.5% interest. Why do those borrowers pay 5-times the rate? Because there is a HUGE amount of risk involved. Do yourself a favor, don't invest in this stuff.

 

So, when did you buy?

 

At the best time as always.

 

In other words you are just spamming threads with naive nonsense

 

LOL! Your strawmen mean nothing!

 

Whether you agree with that sentiment or not, the market took off when Trump was elected, and the recent run up is it factoring in the likelihood of Trump being re-elected. The less taxes and regulation compliance to deal with the more businesses can invest in equipment, expansion, and hiring. That is exactly what we've seen since Trump was elected.

I don't think you know what you're talking about, and I doubt you would qualify as an accredited investor. They aren't paying five times the interest rate, most opportunities are value added, meaning they buy a distressed property, renovate it, and sell, often in a two year hold period. Some are ground up construction. You don't think the stock market is risky? There was about a six year stretch in the 2000s where it didn't return anything, and was beaten by gold. Crowdstreet investments aren't liquid, which is why they pay more. Such investments have always been available to rich investors who knew someone, and who had six figures to invest, they've been getting these returns for a long time. Crowdstreet makes it available to ordinary people. There are other similar platforms. BTW, out of 23 realized deals, the average annual return has been 30%, and only two have lost money. If you don't want to invest in a single property they have funds that invest in a number of properties and still return 15%+. If 30 Grade A properties ever become worthless, we all have big problems. Most wealthy people I run into got it through real estate, Donald Trump doesn't have an IRA.

 

Would that include this incredible bull market run that has gone on for 11 years now? A couple weeks ago, I was looking at my wife's 401(k) and saw she was 60/40 stocks/bonds. Too risky for a 56 year old, so I changed the asset allocation to 65/35 bonds/stocks. She's done well, the last couple days. Better to be lucky than good, I guess.

If I were you, I would get out of this market while the getting is good. This thing is going to really have an impact on poor countries with high population densities. Those countries make A LOT of our stuff and supply the world with a lot of critical things, like rare earths. Their health systems (poor/non-existent as they are) will get swamped, a lot of their old and sick will die, their economies will contract, and I don't see how we avoid a global recession at this point.

After that press conference, I think there will be another sell-off tomorrow.

 

I agree an older person should be no more than 50% in stocks. Of course a 56 year old woman could easily have another 30+ years ahead of her.

 

I qualify as an accredited investor, but you are right, I do not know what I am talking about when it comes to PE-like RE investment. However, I have no interest in finding out. There is a reason why these investments need accredited investors -- because they are not regulated by the SEC. Maybe they are high-risk, high reward, the risk is probably why they have to go around the SEC to raise capital.

Second, the firm was founded in 2013. They want you to put your money in illiquid investments when they are not even 10 years in existence? If you want to gamble with your hard earned money, be my guest. For me, no thank you

 

Personally, I go by the 110-age in stock rule. That means 55% stocks for me, as an almost 55 year old. I sleep well at night. Should there be a selloff, I will continue rebalancing. you need to be correct twice when timing the market, once when you sell, and then again when you get back in. I know I don't have skill to do that. Actually, nobody does, most people just haven't figured that out yet.

 

Five or six stocks have been the basis for over 25% of the markets gains in the past 3 years.The VAST majority of our stock market companies are BARELY profitable, driving up their share price by buying back their own stock reducing the float to drive up the price. Half the companies listed have bond ratings one stripe from junk bond status.

 

Yeah, it was just serrendipitous(sp) that I was changing my wife's holdings.

 

Which is really stupid, anybody can bet the house on a single stock, which could be worth zero next year. Highly unlikely to happen with Class A properties.

This type of RE investments have been around forever, how do you think developers raise money?

 

-Not investing in something you don't understand is smart, not stupid.
-Not performance chasing is smart, not stupid.
-Knowing when things are too good to be true is smart, not stupid (as Madoff investors),

I agree, investing into single stock is risky. That's why I own index funds,

 

Good for you admitting it . Too many brag on the internet about their investing skills -- when times are good. You never hear from them again when they take the loss.

 

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

It happens with every viral epidemic. Fortunately, after the panic subsides, the market has gone back to where it was before the panic.

 

We did not see the index drop over the Ebola virus in 2014 when there were over 11000 deaths nor over the Swine Flu outbreak in 2009 where there was over 12000 deaths just in the US and over 150000 deaths worldwide