The new norm: 800pt Dow drop gets hardly a mention
DrBuster
Posts: 5,379 ✭✭✭✭✭
Was that on your radar today with the hurricane news? Is under 5% not headline worthy anymore?
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FAKE NEWS!!!!
Not on my newsfeed, but I was feeling it.
Watched it closely from the TVIX bleachers.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Saw it earlier, for some reason it didn't seem like a big deal. Maybe the focus was on Hurricane Michael !!!
I hear that “Dow futures are now down 1000 points...”
https://www.zerohedge.com/news/2018-10-10/fang-freefall-sparks-longest-sp-500-losing-streak-trump-era
Dang, did any of you metals only guys buy stock recently?
Curses ;~
the percentage matters more than the raw number move
gold futures pit trading stops at 1:30pm. volumes tail off from there.
from about 1:30 on... gold was in a line up to 5pm. from about 1193 to 1198. I wish it would move like that every market sell off.
Fear of November 6th setting in?
I wonder if the PPT was working today.
I knew it would happen.
The long overdue correction started last week. Nothing new nor unusual. It's a normal process of the market. PM investors should be familiar with that scenario.
I knew jmski top-ticked it.
Knowledge is the enemy of fear
I'm really pretty happy on days like today that I've got gold and silver.
And on days when the US market soars, I'm pretty happy that I've got a diversified (but leaning aggressive) equities portfolio with a majority in index funds and ETFs, and a few solid individual stocks, within a thoughtful allocation of both tax-advantaged and taxable but accessible vehicles.
And on days when the US market crashes, I'm pretty happy that portfolio contains global growth funds, as well as a big hunk of a rock solid bond fund.
And on days when the market crashes and precious metals are in the dumpster, I'm pretty happy that I've got several rental properties, fully leased (many through August of 2020 or beyond), most recently refinanced with a 5-year lock, all with very low loan-to-value ratios, in an area of the country experiencing solid growth.
And on days when the real estate market seems overbuilt, and when metals tank, and when the stock market falls, I'm pretty happy that I've got a pretty nice coin collection, largely of PCGS- and NGC-graded coins, many with CAC stickers, several with standing offers from fellow board members.
And on days when the market tanks, the toilets are clogged, bonds are sinking, the shine on coins is dulled, I'm pretty happy that I've got some nice antiques, some fantastic original artwork, some historically-significant collectibles.
And on days when the markets drop, gold and silver have lost their luster, the apartments and commercial tenants are grumpy, nobody's talking coins, or antiques, or collectibles, I'm really pretty pleased that we paid off our comfortable and attractive but modest house's 20 year mortgage late last year, that I have almost no consumer debt, and that I paid cash for my 2018 Honda CR-V a couple of months back.
And on days when the market, PMs, rental properties, antiques and collectibles can't make me smile, I think about my wife of 20 years who is the polar opposite of me in terms of risk and investment. And that while I do all of this crazy stuff, she's been sinking the absolute maximum of her solid salary into her 401k, IRAs, and other retirement investments as she's done for the last 30 years. Because even though it may not be as exciting or "sexy" as my portfolio, it's been chugging along at a respectable pace for decades, growing with her salary, until it's formidable in its own right. And though we keep our finances 100% separate, there is a deep pool of satisfaction knowing she doesn't have to have my financial support and that I don't have to have hers, either. But combined? Combined we're doing just fine, thank you very much.
And when all of that isn't enough, I thank my self from 9 years ago that my wife and I started a modest few hundred dollar a month 529 plan for our son the month he was born. And while it's done phenomenally well in that period of time, he'll never find out about it because we've always instilled in him that he's expected to not only go to a good 4 year school at a minimum, but that he damn well better get scholarships and pay his own way through whatever college program he decides on.
And if for some reason I can't get a smile from all of this, I'm glad we both came to the conclusion that we wanted to live a healthy lifestyle many years ago. We've never smoked, we drink in moderation, we make healthy food at home but still enjoy eating out with some regularity. We drive safe vehicles. We both exercise moderately but regularly--daily even--and we've made it part of our family activities. We can't stop the inevitable. But we'll delay it, believe you me. And we'll have the finest quality of life and health that we can for as long as we can with the absolute least amount of doctor visits, medicine, and the associated time, expenses, and stress they require.
And if all of that still doesn't make me feel secure...
...
Wait. What am I talking about? We're good.
--Severian the Lame
Lovin the regression toward the mean. Busy reallocating these past months, process continues..
Edit, post of the millennium Weiss!
Dotto, but change all the details.
Liberty: Parent of Science & Industry
I knew jmski top-ticked it.
All I had to do was think about buying a share of stock.
I knew it would happen.
Weiss....You're just one "happy dude."
Weiss, keeping it real, bravo!
You got it figured out, Weiss. Go write that book.
Here's a warning parable for coin collectors...
WTSHTF, we're all heading to Weiss' house!
I'm just sayin'. Live within your means, take care of yourself, start saving young, and diversify.
I'm not the sharpest tool in the shed. But this isn't rocket science, either.
--Severian the Lame
Well stated @Weiss.... You have the bases covered, even in case of a black swan event... well, in many scenarios anyway.... Just in case, be sure to bequeath me that silver tankard you acquired...
Cheers, RickO
@Weiss
My YouTube Channel
as his long lost nephew I object to that joke.
Down ~530 as of 2:50pm, yippee.
Daq 100 is only down 54 vs dow down 452
Ones and zeroes.
rising interest rates, bubbles popping
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Must be the Russians. lol
Semper Fi!
The whole worlds off its rocker, buy Gold™.
So, stock averages lost 3% of the 30% they gained over the past few years, and gold gained 3% of the 30% it lost?
Liberty: Parent of Science & Industry
If the Fed Funds rate was at the historic average of 4% it wouldn't be a pop, it would be an implosion.
So, stock averages lost 3% of the 30% they gained over the past few years, and gold gained 3% of the 30% it lost?
Call me suspicious, but it seems to me that monetary policy has had something to do with both phenomena. What we haven't seen yet is the net result of the debt, but I suspect that it's coming.
I knew it would happen.
Why? Hasn't the economy done well in the past with interest rates much higher?
Knowledge is the enemy of fear
You may want to revisit your math to accurate representation lest you raise suspicion of nefarious activity.
Knowledge is the enemy of fear
Well, those are suspiciously round numbers and vague time frames, will leave it to the detectos on the forum to knock down the straw men with some exact figures. Wheremiwrong?
Liberty: Parent of Science & Industry
Easy money comes & goes. Stick with the properly valued ones.
Best place to buy !
Bronze Associate member
You may want to revisit your math to accurate representation lest you raise suspicion of nefarious activity.
Well, those are suspiciously round numbers and vague time frames, will leave it to the detectos on the forum to knock down the straw men with some exact figures. Wheremiwrong?
I realize that sarcasm is lost on you when it comes to the banking system's 10 years' manipulation of interest rates and financial markets, but that doesn't make it any less true. I should probably say 20 years' worth since the passage of Graham-Leach-Bliley.
I knew it would happen.
Why not make it 105 years since the 1913 when the Fed was created?
Knowledge is the enemy of fear
Why not make it 105 years since the 1913 when the Fed was created?
Mainly, because Graham-Leach-Bliley gave free reign to the banks to mingle the mortgage loan business with commercial banking which resulted in the creation of the current derivatives problem, which is nothing more than a banking scam built upon a banking scam.
You make a good point, however. Both the Fed and the 1999 bill were designed to favor big banking and to screw the public.
I knew it would happen.
Screw the public, or half the public?
The above-the-median half are doing Better Than Average, right?
Liberty: Parent of Science & Industry
I think he means the public that didn't see the benefit of borrowing at the lowest rates they will ever see. Why would anyone want to use the banks money to leverage into productive assets at super low rates?
Knowledge is the enemy of fear
Leverage. Debt is running the show now.
From a Federal Reserve banker's perspective, the public is anyone who's not a Federal Reserve banker. Does that help clarify?
I knew it would happen.
So that means me and you and Baley and Weiss? We were all screwed? I think we might all say, "do it again!!" No?
Knowledge is the enemy of fear
The Fed sometimes refers to us as civilians subject to collateral damage.
So that means me and you and Baley and Weiss? We were all screwed? I think we might all say, "do it again!!" No?
If you actually work for a living instead of skimming money from other people's transactions or working in an industry where management benefits from windfall money that is driven by government rules & regs - where the government subsidizes your industry, and picks the winners & losers by erecting barriers to competition - then yeah, you've been screwed.
I knew it would happen.
Ask nearly any American outside the top quartile, and that's 250 million of us, how they've fared over the last decade. Most of them are holding their own at best.
Best to position ones self to 'hold their own' regardless of what government does. This requires as little a position in the government's currency as possible.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
If I agreed with you, we’d both be wrong, and I'm one of your mentioned 250 million.
If you agreed with me you could not be wrong.
Re-read what I wrote.
To wit: The bottom 70 percent of U.S. households have a net worth of less than $100,000, and they own less than 9 percent of the total U.S. wealth. US ECONOMY> ECONOMY STATS> KIMBERLY AMADEO>June 22, 2018
Was there ever a time in America when those stats were markedly different?
Knowledge is the enemy of fear