Some good advice here for those with investments in the stock market

[mnhtnbb]

Over the course of a 30-year career working with clients, I have seen several radical gyrations of the stock market. Everyone wants to do the right thing for their future, including make money. Losing money does not feel good. Today I know the question “What should I do?” is on everyone’s mind.

Here are the questions you need to ask yourself:

• Do I have cash for your immediate needs?

• Am I looking to sell for the sake of action and control?

• Do I know how my portfolio has done in the long term?

https://www.marketwatch.com/story/do-this-one-thing-before-you-react-to-the-stock-markets-losses-2020-02-26?mod=mw_quote_news


Five reasons the stock market is tanking:

https://www.marketwatch.com/story/the-dow-just-logged-its-worst-2-day-point-slide-in-history-here-are-5-reasons-the-stock-market-is-tanking-and-it-isnt-just-the-coronavirus-2020-02-25



What typically happens following a two-day selloff of 6%? More of the same, if 1987 and 2008 are any indication

https://www.marketwatch.com/story/whats-next-for-the-market-more-pain-if-1987-and-2008-are-any-indication-2020-02-26

[samnsara]

1. good advice... we are actually doing so well in the market but we know its blood money and it..

Last edited Thu Feb 27, 2020, 11:19 AM - Edit history (1)

..wont last. I would actually give up all that we have made to get trump* out of office. We regularly skim off the profits and put into something safe for when everything crashes.


But there are some real bargains out there now..

[Hoyt]

2. Don't look at #2 in "Five reasons the stock market is tanking."

[samnsara]

3. lol ok

[ThoughtCriminal]

4. Investment "advise" I gave after 2000 and 2016 elections

If you only care about making money, this is the time to invest in human suffering.

Any industry that thrives on fear, pain, and death is good when there is a Republican in the White House.

[Hortensis]

5. "much more complicated, if at all possible, to offset supply shocks."

As consumers at the end of multiple personal supply chains, not just investors, the link in the OP's first article seems worth checking out. https://www.marketwatch.com/story/why-a-supply-shock-is-biggest-stock-market-worry-as-viral-outbreak-continues-2020-02-25

Imagine the long, awesome, almost miraculous-seeming chain of people, knowledge, production facilities, communications and transportation, and yes governments, that it takes to turn commodities, organic plants and inorganic..."dirt," into a takeout chai latte, can of chili, or that capsule you must have to stay healthy.

There’s something different about the threat COVID-19 poses to the global economy. And that’s what has investors worried.

“Because of its genesis in China, coronavirus is both a demand and a supply shock to the global economy,” said Brian Nick, chief investment strategist at Nuveen, in a Tuesday note. “Outside of China, however, evidence based on February’s survey data suggests that demand remains solid, and supply issues are the key risk.”

And it’s that threat of a supply shock — an unexpected change in the supply of a product or commodity — that is particularly unnerving for investors. They are more used to dealing with the occasional threat of negative demand shocks — an unexpected hit to demand for goods and services. As Erik Nielsen, group chief economist at UniCredit Bank, explained in a Sunday note, investors know that efforts by policy makers to stimulate the economy can partly address demand shocks.

But it is “much more complicated, if at all possible” to offset supply shocks, he wrote, offering the following example:

Think of it this way: China has closed a reported 70,000 movie theatres because of the virus. That’s a supply shock, and no amount of income (demand) stimulus will boost ticket sales. Of course, people may increase the number of downloads of films and games to play at home, as we have seen, but this is nothing more than drops in the ocean in terms of the overall economy

Big, negative supply shocks are rare, Nielsen noted, with the oil shocks of the early and late 1970s (I parked hours every day in gas lines with our small children playing in the back seat to get the gas my husband needed to get to work) offering perhaps the most well-known examples. Other examples of supply shocks include storms, tsunamis, earthquakes, wars, and strikes. The problem is that there’s little that looser monetary policy or additional fiscal stimulus can do to offset the impact because those stimulus measures work by boosting demand.

If Asian production stoppages worsen or continue well into the second quarter, a global supply crunch could hit the already weakening manufacturing sector, he said, with implications for jobs and the wider global economy. Moreover, it comes in an environment where valuations for U.S. stocks and credit markets were “’priced to perfection’ or something close to it following the three Fed interest rate cuts last year and the resolution of various trade deals,” he said.

As for that "perfection," I've been reading some articles on the markets, and cheerleading conservative authors both dominate and are extremely easy to pick out -- they mention only reasons why the bull markets will continue to charge (Republicans will stay in power #1) and ignore clouds that could suddenly turn into super cells. Or not. (Unfortunate for us, Democrats taking power is seen as one of those.)

I certainly have no crystal ball. I did note that here in Florida, with no coronavirus case yet reported, a "Chinese" restaurant we had lunch in yesterday was empty except for us and a gentleman who was a regular. The owner, obviously Chinese in origin, confirmed this was irregular and ascribed it to "the elders'," apparently their dominant lunch customer, fear. A demand problem.