I wouldn't. This is a good time to be in cash until this storm blows over.
Markets
- Thread starter Raoul
- Start date
Yes, good call. I've recently started saving cash waiting for this correction. Question I need to ask myself is do I sell some of my long-term equity positions or ride it out. Tough call.
We're still a ways off from a proper Cramer meltdown
My Father-In-Law is Cramer's long lost English twin. He is so like him in many ways.
The repercussions om the Asian markets will be very bad. The FY 18-19 Indian budget hasn't helped either. Massive sell off from FIIs, DIIs and HNIs. A correction was bound to happen but this is like a blood bath the last 3 sessions.
The Indian FM should take a call on whether he has to withdraw taxation on Long Term Capital Gains. If not, I can see this continue further.
The Indian FM should take a call on whether he has to withdraw taxation on Long Term Capital Gains. If not, I can see this continue further.
Yes - the real danger is that global markets follow the US, which in turns reacts to global markets. The S&P crashed through a major technical level today and futures indicate it has fallen much further. The next stop will be 2555 at the 200 EMA. If it drops below that then we are in big trouble.
Your first line is the key thing. All major markets respond to Dow. Right now Indian markets are climbing down from their all-time highs so it's along expected lines especially with the Indian budget not giving any cheers to Dalal Street.Yes - the real danger is that global markets follow the US, which in turns reacts to global markets. The S&P crashed through a major technical level today and futures indicate it has fallen much further. The next stop will be 2555 at the 200 EMA. If it drops below that then we are in big trouble.
As for Dow, apart from the lower resistance getting breached, is there anything else which is causing such massive sell-offs?
Bit worrying
Tweet
— Twitter API (@user) date
Futures down another 800 as of a moment ago.
This is priceless in terms of egg on the face of Tango Man. Psychologically people hurt more losing gains than losses off the original positions.
With the global economy finally strengthening and interest rates finally rising there are alternatives to invest your money. This is the main reason for the drop. It’s all good news actually for the economies, means things are improving!
Stock market isnt the economy. There are correlations but not direct relationships.
So a 4.6% drop. Futures are not looking good as well.
It may be because of rising bond yields and potentially higher inflation. So far, investors were in a lull because of solid economic expansion, improved corporate earnings, stable inflation and wages rising slighty. This may be the reaction to all of that. It's a correction to the markets rising for the past year.
The US Reserve may hike interest rates now.
It may be because of rising bond yields and potentially higher inflation. So far, investors were in a lull because of solid economic expansion, improved corporate earnings, stable inflation and wages rising slighty. This may be the reaction to all of that. It's a correction to the markets rising for the past year.
The US Reserve may hike interest rates now.
Nah I suspect he will say the fake fbi investigations (funded by crooked Hillary) is scaring investors as they can see there is a deep state conspiracy to remove "trump" who gave record stock market rises... Investigation must be stopped as it's bad for the economy.
Time to #drain the swamp, #lock her up, and #MAGA
I cant actually login this morning to assess the damage.
Likely the other way round. Better than expected economic data led to speculation of interest rate rises. Everyone piled out of stocks and into bonds which sparked the fall. Treasury yields rocketed at the start of all this.
Now you've got the indexes ploughing through all sorts of triggers prompting further sell offs. There is no economy issues behind the fall so I expect it will bounce again once a few big buy orders go off.
You dont buy bonds if you think interest rates are going to rise. You sell bonds.
Edit: but of course you might buy Govies if you are running scared from an equity market rout.
Last edited:
I didn't say you buy them..
what is happening?
Sounded like it!
I used to be a bond trader!
Maybe thats why you arent anymore!
It's not too much of a negative. Valuations were at/ approaching all time highs, a slight correction is sensible. Inflation is the more pressing issue at present, hopefully wage (and productivity) growth picks up to help people out there.
My biggest loser was down by 13% at one point today. Ah well, still above what I paid at least. You pays your money and you takes your chance.
This. People are acting like it's the day after Brexit all over again.
And there it is. Dow slighty plus.
So hysteria is not confined to football fans after their team has lost? Investors are also culpable?
I thought you might actually have some work to do today Jips given the situation, I'm obviously wrong again.
As for market falls, there have been a few articles recently saying if you try and sell before the dips you end up missing out more on the rises than you save missing the dips. I've taken this as good advice for the bone-idle, sat back, and let nature take it's course.
No that shouldn’t be how it works. I want all the profit and none of the loss or else
It depends on timing doesnt it. You read stories about fund managers who correctly called the dotcom bust, but were a year or so too early and ended up going bust because investors pulled their money out as all their peers were raking it in rising the bubble higher. So being right doesnt mean anything if you dont time it correctly. As the saying goes, the markets can be irrational for longer than most investors can stay solvent.I thought you might actually have some work to do today Jips given the situation, I'm obviously wrong again.
As for market falls, there have been a few articles recently saying if you try and sell before the dips you end up missing out more on the rises than you save missing the dips. I've taken this as good advice for the bone-idle, sat back, and let nature take it's course.
Investors are probably worse tbh.
Heh, I'm sat in a hotel room overlooking the savannah, leaving my colleagues to itI thought you might actually have some work to do today Jips given the situation, I'm obviously wrong again.
As for market falls, there have been a few articles recently saying if you try and sell before the dips you end up missing out more on the rises than you save missing the dips. I've taken this as good advice for the bone-idle, sat back, and let nature take it's course.
Just looked and my work inbox is rammed with comment. Fears of rising inflation in the US taking hold when markets are at record highs was a pretty heady combination.
And yep, Fidelity always pump out research showing how if you miss say the four or five best recovery days a year cos you sold, you do really shit in the long-term. Would love it if they did a hodl typo!
Seeing as how there are bond traders and pros about, a quick question:
When bond prices fall the headline is always 'yields have risen', and never 'bond prices have fallen'.
But when stocks fall it's never 'dividend yields have risen', it's always 'stocks have fallen'.
Is this just to make it all a bit more mysterious than it is or have I cocked up again?
When bond prices fall the headline is always 'yields have risen', and never 'bond prices have fallen'.
But when stocks fall it's never 'dividend yields have risen', it's always 'stocks have fallen'.
Is this just to make it all a bit more mysterious than it is or have I cocked up again?
This looks like a buying opportunity to me. Already plonked large on one I've been watching.
Yeah it's an odd one. We barely ever write bond prices, except when you have a fund saying he bought whatever for x in the £ as a value trade.
Similarly, with shares, we only mention yield if a big company's or sector's yields are anomalous, or maybe say if there are concerns about Shell's divi cover levels etc...Share price drops are obviously the headline.
There's still plenty of real estate to the downside until we hit 2550
Isn't that just unique to bonds due to their inverse relationship and coupon price.
I don't see how it's relevant to stocks unless I've misunderstood the question
You've inspired me to top up my four core holdings with the cash sitting in my Sipp. Fingers crossed it's just a blip.
Because share price and dividend yield have a similar inverse relationship. I think.
