Don't look at your 401K... NASDAQ officially enters Bear Market

[WarGamer]

And the DOW is now in the same spot it was a year ago... 3/21

Months ago, I predicted we're heading towards a recession... Q4/22 GDP may be in the red.

The last YEAR of the market BOOM is basically gone.

https://finance.yahoo.com/m/30e5a029-7bed-3d72-aa6c-3134e876275e/what-soaring-oil-prices-mean.html

https://finance.yahoo.com/m/84c18825-5e32-3e4a-b318-e1759dd00fe5/dow-jones-dives-as.html

Nasdaq, Growth Stocks Mauled

The Nasdaq fared worst out of the major indexes, closing down 3.6%. Fortinet (FTNT) was lagging most here with a decline of more than 12%.

The S&P 500 was also toiling, falling 3%. PVH (PVH) fell hard on fears over European exposure, giving up more than 15%.




One must understand, it's a "Perfect Storm"... the convergence of:

1) Ukraine War

2) Extreme Inflation (CPI)

3) Oil and Energy costs

4) Rising Interest rates

5) Continuing Supply Chain Issues

6) Fed unraveling stimulus

I'm not a financial advisor... but if you're heavily invested in the market AND need your money now or in the near future, talk to your financial advisor.

[ProudMNDemocrat]

1. We do that on a regular basis.

Some is in the Market, but much of it is in Mutual Funds, Money Market accounts, specific annuities, ROTH IRAs. Plus, we both still earn money from part-time work, my small business, Retirements from IBM, the US Military, a small Manufacturing company my husband worked at for 10 years with an IRA, plus Social Security that supplements everything else.

Less than 30% is in the Market. We have a smart planner who has done very well for us for the past 20 plus years to maximize our money building power and minimize risk.

[WarGamer]

3. the market always wins in the long term...

But believe it or not... some people keep their money tied up in stocks/mutual funds/etf's right up until the day they retire.

[marybourg]

12. Why not? Do they need it all the day they retire?

I’ve been retired 34 years. My assets ( stocks, bonds, residential real estate) have sextupled since then.

[WarGamer]

16. here

https://www.troweprice.com/personal-investing/resources/insights/asset-allocation-planning-for-retirement.html

As investors get closer to and are in retirement, adding bonds can help dampen short-term ups and downs of the market while still providing growth opportunity over a retirement that could last decades. T. Rowe Price’s sample retirement portfolios offer a good starting point. These portfolios include ranges of the primary asset classes to accommodate investors’ risk preferences while considering allocations appropriate for various ages and time horizons.



Basically, your portfolio should change as you age. Right now would be a bad time to be 90% stocks IF you're using investments as income.

[marybourg]

22. Oh, I see. By "mutual funds and etf's" you meant *stock* mutual funds and etf's only.

In that case, I see what you mean, but of course mutual funds and etf’s can contain fixed income securities also. As mine do. In a very high percentage, after a 34 year retirement.

[budkin]

2. And Biden will take the blame

Because he's the current president.

[WarGamer]

4. It's just timing... no matter WHO the POTUS was, same thing would happen.

But yeah, the blame always ends up on PA Ave.

[LuckyCharms]

5. Pulled out about 6 weeks ago. n/t

[drray23]

6. Buying opportunities.

I am years away from retiring so for me, it's a buying opportunity. Eventually it will go back up and long term I will have benefited. Obviously if you are a year or two away from retiring it's a different story.

[WarGamer]

7. Yes but not YET.

"We are definitely not buyers of the dip at this point. For perspective, we were worried about the first half of this year before the Russia-Ukraine conflict even started just based on the Fed and the growth in inflation dynamics. The geopolitical stuff just reinforces that," Kaiser said on Yahoo Finance Live.

Markets would seem to agree with Kaiser's hot take.

https://finance.yahoo.com/news/we-are-definitely-not-buyers-of-the-dip-at-this-point-says-ubs-strategist-171409128.html

[Freethinker65]

8. Have lost tons "on paper" but will survive

Really not looking forward to paying capital gains taxes when "losing" so much in mutual fund investments.

[WarGamer]

11. I've done OK.

Most of my port is professionally managed so yeah, it's down quite a bit.

BUT

For several years I've traded my own personal port, mostly day trading options. Had an amazing OCt/Nov of 2021 and then took a few hits in December... got the hint and started playing "bear ball" and have been winning pretty consistently playing ER's and shorting SPY.

[Freethinker65]

25. Yeah. Was advised to invest some in managed fund that trolled for losses.

Waited too long.

[beaglelover]

9. What goes down will go back up, plus now if you're contributing to your 401(k) you're buying more

shares of mutual funds each pay period since the prices are lower. I'm not worried about this downturn as I still have a few years until I retire.

[WarGamer]

10. that's the spirit!! The market always wins long.

[progree]

13. S&P 500 closed down 12.4% from its Jan. 3 all-time high

Well into correction territory (which starts at 10% down), but well short of a bear market (which begins at 20% down).

Still, 12.4% down means for every $8 an S&P 500 investor had on Jan 3, they now have $7. (Not including dividends, expenses, and taxes).

[WarGamer]

14. that's what the OP said... NASDAQ officially in a bear market.

[progree]

17. I was just adding info about the S&P 500. I didn't see anything in the OP excerpt

about how far down it had gone since its all-time high, so I thought some people might be interested -- as the broadest measure of the total U.S. stock market (having 75-80% of the total capitalization of all U.S. stocks) other than an actual U.S. total stock market index like the Wilshire 5000.

[WarGamer]

19. Yeah, it's been rough...

When I switched over to playing "bear" in December I've been playing SPY puts pretty much every week,,,

I think it can still fall to 400

[progree]

21. That's just another 4.6% down and then SPY is at 400...

https://finance.yahoo.com/quote/SPY/

from a close today of 419.43

Given that it fell 2.95% in just one day -- today -- reaching 400 soon (this week) is almost a safe bet

[Kaleva]

15. Existing on about $1400 a month SSDI, I don't have such worries

[WarGamer]

20. Inflation must make you nervous, though...

We must increase benefits...

[Kaleva]

23. I generally adapt.

I usually buy when the item is on sale and I try buy enough to last me to the next sale.

It's not often when I buy name brand products. Store brand is usually good enough.

I especially pay attention to what's in the discount area. Items just past their sell by or best used by date. Like getting 3 cans of chicken noodle soup for $.97 or 4 boxes of macaroni and cheese for $1.00.

[WarGamer]

24. that makes sense...

[uponit7771]

18. 32k is support, if DOW crashes through there then yes ... established bear market