General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsWatching my 401, the stock market is a f***ing yoyo.
https://www.google.com/amp/s/www.marketwatch.com/amp/story/guid/C792B031-2E4A-426C-9E06-F9614FE4A776A nearly 700-point gain in the Dow Jones Industrial Average DJIA and a surge in the Nasdaq Composite Index COMP midday Friday has resulted in the equity market seeing panic-like buying. The moves come on the back of dovish comments from Federal Reserve Chairman Jerome Powell during a panel discussion with his predecessors in Atlanta.
snip..
Fed Chairman Jerome Powell said Friday he's flexible about future monetary policy moves, proving some comfort to investors that have grown anxious about the rate-hike path of the central bank as signs of slack in the global economy appeared to mount.
...................
Are some entities using the stock market to scare some people into selling so they can buy at a bargain?
I admit I know very little about what i would call the backroom deals, but these wild swings just don't seem normal. Then again, what is normal these days.
ck4829
(35,076 posts)A HERETIC I AM
(24,368 posts)or a robbery, right?
ck4829
(35,076 posts)Securities fraud comes to mind.
Enron employees had their 401k plans obliterated.
https://www.nytimes.com/2001/11/22/business/employees-retirement-plan-is-a-victim-as-enron-tumbles.html
A HERETIC I AM
(24,368 posts)It's just that it doesn't, unless your investments are completely speculative.
The number of companies that did the same thing as Enron can be counted on one hand. Of course, Enron was 18 years ago, but don't let that stop your rather skewed and slightly paranoid opinion of investing.
Look...some people are savers and some people are investors. It has always been thus. If you don't like or can not tolerate risk of any kind, then fine, put it in an FDIC insured bank account and you can sleep soundly. No one will think any less of you.
But frankly your idea, even if it was just in jest, has risk as well, doesn't it?
Delmette2.0
(4,165 posts)But between the mattress pad and the mattress. My rational was if someone broke in and flipped the mattress the mattress pad would hold tight and the cash would not be found. Sorry to say the cash got spend on emergency expenses, so it served It's purpose.
redstatebluegirl
(12,265 posts)I am in it for the long term and hoping the market will survive Trumper. I rolled a lot of mine into his a couple of years ago. We are find with my SS and my part-time job which will last for a few years until the grant ends. I feel for those who depend on it right now.
Delmette2.0
(4,165 posts)I have to take $500 out each year because of my age, but i still worry that the down turn will do too much damage.
Johnny2X2X
(19,066 posts)At 63 you should not be heavily in stocks. Maybe 30-40% in lower risk ones.
redstatebluegirl
(12,265 posts)bif
(22,702 posts)The only good financial advice my dad ever gave me. He was a retired dentist and died penniless last May. I do have about 20% of my money in the stock market, mainly in Apple, which is just killing me lately. The horror...the horror!
TheFarseer
(9,322 posts)To sell off weaker stocks on up days like this and buy stronger stocks on days like yesterday. Unfortunately you only know for sure which is which afterwards.
el_bryanto
(11,804 posts)A few people make buys, and their computer algorithms magnify those issues, sometimes enormously.
Bryant
Wellstone ruled
(34,661 posts)My guess is,this volatility is only going to get worse. Industrial relate Stocks are going to be the Patsy during this rotation. Looks like the Employee Pension Funds of these Industrial Stocks are the new target of Wall Street High Speed Traders .
empedocles
(15,751 posts)in a week, than they can make in more typical months.
packman
(16,296 posts)That's what they did in the Depression Era when confidence in banks and stocks hit bottom.
A HERETIC I AM
(24,368 posts)is that it is possible for that cash to become worthless.
And FWIW, back in the "Depression era" the FDIC didn't exist.
Don't forget, during the recent Great Recession, despite the trillions of lost value in the stock market and the housing market, of all the people that had money in banks in this country, not one single person lost one single red cent.
NOT. A. SINGLE. PENNY.
empedocles
(15,751 posts)larger than the upside reward.
OliverQ
(3,363 posts)and remarks by the Fed.
Of course good economic news just makes everyone ignore the horrible things Trump does which is so frustrating.