Dow Jones plunges for 2nd straight day on coronavirus fears

[left-of-center2012]

Source: ABC news

The Dow Jones Industrial Average plunged for the second straight day, tumbling more than 800 points, as health officials warned the novel coronavirus likely will spread throughout communities in the U.S. The Dow, S&P 500 and Nasdaq all had fallen about 3% through early-afternoon trading on Tuesday.

The losses have been widespread. American Express, Dow Inc., Visa, Boeing and United Technologies Corp. were among the worst performers on Tuesday, all falling more than 3%.

Tech companies including Apple, which produce goods in China and rely on that market for sales, also suffered. The travel sector, including cruise operators and airlines, also took a hit.

Tuesday's losses come after the Dow suffered its worst single-day losses in more than two years on Monday, plummeting more than 1,000 points.

Read more: https://abcnews.go.com/Business/dow-jones-plunges-2nd-straight-day-coronavirus-fears/story?id=69205851&cid=clicksource_4380645_2_heads_hero_live_headlines_hed

---

Health officials warned Americans on Tuesday to prepare for "significant disruption" to their lives as a result of the virus, saying it's not a matter of if, but when it spreads in communities in the U.S.

[yaesu]

1. But Rump says the economy is perfect, has never been this perfect

[Grokenstein]

9. Coming soon to a media outlet near you:

"OBAMA AND HILLARY AND SOROS CREATED CORONAVIRUS TO DESTROY TRUMP'S PERFECT ECONOMY!! And give your kids autism!"

"...Now go buy plastic sheeting and duct tape from our participating retailers!"

[Politicub]

2. Trump's policies are causing the Dow to crater

Using Coronavirus is just an excuse to paper over the long-term effects of his monetary policy.

Of course the epidemic is having an impact, but it's a small part of a panoply of negative economic and leadership factors that are coming together at once.

[Warpy]

16. Those policies will cause the Big Dump, but this isn't it, not yet

This is a combination of a far overdue correction plus having 2 major Asian markets virtually shut due to quarantine. Now the Persian Gulf is adding to that, canceling flights and talking about their own quarantines since the virus seems to be getting established in Iran and possibly Dubai. That's certainly not going to help the markets tomorrow, even with bargain hunters at the ready.

[bucolic_frolic]

3. Real downside potential ahead

3% every day, surely tomorrow, then a pause. This reminds me of the fall of Lehman. Not something to bounce off.

[SWBTATTReg]

4. Still falling, down 942 ...

For Economy Skeptics, Stock Sell-Off Is ‘An Opportunity to Exit’ (from Bloomberg's website), perhaps time to take a little off the table now (sell some shares for those that still have a stake in the markets). I've already sold most of mine, not in response to these events, just to take some money off the table, and give it a 'rest'.

All kinds of crap have been coming from the rump admin., Kudlow said that it's run its course (the coronavirus) and rump's own upbeat assessment was undercut by the CDC (watch rump fire all of them now) when the CDC said that Americans need to prep for the virus' outbreak.

Again, rump, kudlow, etc. is being grossly incompetent in responding to this true emergency. What are we going to see now, rump's black marker scrawls across a white board identifying possible steps to take in countering possible coronavirus outbreaks in the US?

I am just waiting for what other crap and/or nonsense that his administration will come up with. They won't listen to the doctors but instead to what their political calculus comes up with. By the time they quit listening to their in house crap, it'll be too late.

[nitpicker]

5. Preliminary close results

Start down finish:
Dow 27960 878 27082
NASDAQ 9221 255 8966
S&P 3225 97 3128

[nitpicker]

7. Looks like the dipbuyers tried to bounce it again off the lows

[Joe Nation]

6. The economy was vulnerable to almost any crisis

You can blame the coronavirus, and I'm sure Republicans will, but the fact is that a puff of mild wind could have toppled the U.S. economy because we have been so weakened by the Trump trade policies and his threats of tariffs even against our European trade partners and Canada. If it wasn't the coronavirus, it would have been something else. Our economy is about as fragile as a newly constructed border wall.

[IronLionZion]

8. Prices were Trumped up to begin with

Coronavirus is exposing many weaknesses in the global economy since dumbass thinks trade wars are easy to win. Not only is everything made in China, but we are discovering the hard way just how much we are connected to them. A lot of chemicals, materials, parts, etc. for stuff made elsewhere originates in China so global supply chains are disrupted even for food and medicine and other stuff we don't think of.

[captain queeg]

13. Trump is so utterly clueless

His business model has always been to screw others and not pay his bills. The most profitable enterprise he’s ever had is being the president and fleecing the government and his brain dead followers. As far as he’s concerned campaign contribution are easy money; goes right in his pocket.

[Joe Nation]

10. I have been sitting out of the market since gold was in the 1300's

Everything Trump touches rots eventually. Casinos, football teams, steaks, wines, universities,.... In other words, his track record is pretty consistent. Eventually, everyone else in Trump's orbit is left holding the bag while he walks away with as much cash as he can grab.

Taking note of this consistency, I took my 401K and invested in gold when gold was at $1,318. I then did the same thing to my wife's 401K when gold was at $1,351. The lower the market goes, the more money we make.

We lost big time in 2008. That was not going to happen again. Lesson learned, idiot identified.

[progree]

21. "We lost big time in 2008". Me too, but it was only a paper loss. I hung on, didn't sell a single

share. The S&P 500 even with today's (2/25) 3168 closing is more than double what it was at it's pre-recession peak in October 2007. And substantially more than that when one includes dividends. And about 4X higher than at the crash's bottom (not including dividends, more than 4X higher when including dividends).

People who held on to their equities during the crash did much better on average than those who sold, and that includes gold buyers. And that doesn't count dividends, which is about 1.7%/year for the S&P 500 and zip for gold.

I took my 401K and invested in gold when gold was at $1,318. I then did the same thing to my wife's 401K when gold was at $1,351

With gold closing today, 2/25, at 1637, that's only a 24% gain on what you bought for your 401K, and 21% gain on your wife's gold. I can't guess when you bought the gold since its been in and out of the 1300's several times between fall 2010 and mid-June 2019. But if it was in the earlier part of that period, the S&P 500 way way beat a 24% gain.

I hope this isn't your entire nest egg. I hate to see anybody bet it all on one thing. Diversification is so important. And gold is hardly a steady and secure investment:
. . . https://www.macrotrends.net/1333/historical-gold-prices-100-year-chart

[Joe Nation]

24. You have to understand

I didn't invest in gold until Trump got elected. I made up a lot of the losses from 2008 and then switched over to gold. I didn't sell after the 2008 crash either. In fact, I think it wasn't until Trump's second year in office that i actually switched.

Our 401K funds are by no means our only nest egg. In all likelihood, our kids will get to inherit the money in the 401K's. At 70 and a half, we will be forced to draw down some of the 401K savings but we will most likely use that money to pay the taxes in advance so the kids don't have to.

We both have defined benefit retirement plans that will give us income for life. If I die, my wife gets a portion of mine and if she dies, I get a portion of hers. The portion is either 50%, 75%, or 100% depending on what you designate at the time of retirement. The 401K's were just a back-up and we still have more than 10 years to contribute to them.

Honestly, I never expected to make this much money in my 401K's but my kids will likely see hundreds of thousands when we both pass because the money has decades to grow still.

[bucolic_frolic]

11. Too bad .. it was going to happen anyway .. Trump will spin Corona as an excuse

[captain queeg]

12. If it makes trump look bad I'm ok with downturn

But I don’t have anything in the stock market. Many people’s 401ks are going to suffer. If the rich start suffering Trump will try to save them at the expense of the little guy. When are the Magats going to learn he doesn’t give a shit about them?

[ffr]

14. When can I kiss Donald J. tRump's ring for all that his Dow Joans has given in the past two days?

Last edited Tue Feb 25, 2020, 07:14 PM - Edit history (1)

$1.91 trillion in wealth erased.

[yaesu]

15. Be prepared for runs on your local grocery stores starting tonight

The news networks are telling people to stock up on food, essentials, AKA run & clean out the stores.

[I_UndergroundPanther]

22. I can't get food in any

Excess amount,SSI and foodstamps is not enough to buy extra food.

[Maxheader]

17. Glad I cashed in some funds...

Figured it would be stumpy that caused a crash...Didn't see the pandemic coming...

[Dopers_Greed]

18. Crash baby crash

I've lost some money, but I don't mind.

I would give up my entire life savings if it meant getting Spanky outta here.

[imavoter]

19. word n/t

[IronLionZion]

20. I'm fine with losing some money as long as douchebag loses the presidency

Good that cracks are showing in the system now and our candidates are talking about it in debates.

[duforsure]

23. trump's causing the market drop

By claiming the corona virus is contained when investors and everyone else knows trump was lying about it, and showed they don't trust him by pulling their money out. They know he is lying about this now, while he deny's its threatening us.