I’m seeing everyone freak out about the stock market. First off, a lot of 30-40 year olds concerned about their 401k. But they can’t even cash that in for another 20 to 30 years, I’m sure things will rebound by then, why is everyone freaking out?
More importantly I don’t have money in the market. Isn’t a crash a perfect time to dive in? I don’t lose any money if it continues to dive and once it’s back up again I sell and profit right?
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In principle, sure. But most people don’t keep large sums of univested cash on hand that they’re looking to invest.
You’re correct that short-term fluctuations shouldn’t excessively concern younger people. But it’s stkll worrying to most people to see their retirement fund suddenly contract. What if it doesn’t rebound?
It’s a casino. Is this the bottom, or just a pause in the decline? In investing, they call that a ‘dead cat bounce’. You decide. In 2008, it went down nearly 50% before it started rising again.
The bottom of the market could be days, weeks or months away.
Offhand for starters maybe american car stocks like Ford. But contrary to your question not because they’ve taken a hit but because of what they might do. I’m showing they’re at $9 and 3 years ago were at $25 so you could maybe triple your money at least in just a few years. If this whole tariff thing plays out right. I bet at the very least it’d be pretty stable at $9
More to your question though Disney is looking pretty good. It’s $83 and if it goes below $75 then the minute it starts to go back up I’d go all in. No way does that go below $70
You buy and never sell until retirement age
Too much uncertainty.
Tariffs are likely not to be definitive, and other kind of retaliations are likely to happen. And it is not clear which companies will be able to redesign their supply chains, which companies will find more convenient to move away from the US, which companies will actually find another market, etc.
And it’s unclear how much the FDI into the US will decline (a lot, but no one knows how much ‘a lot’ is).
I’d say that, in the short term, only the European weapon and defense industries will thrive.
Potentially but perfect is an overstatement. Downturns offer opportunities to buy assets at lower prices but further declines are possible and timing the absolute bottom is notoriously difficult.
There is something really concerning about getting into the stock market right now, it’s that the leader of the world’s biggest economy is, to stay polite, kinda erratic in its decision making process. Look at the VIX index, it’s more or less like a casino right now and until midterms I’m afraid the stock market will remain very volatile.
Here…Catch this falling knife
I would suggest getting a trading app and investing a small amount ($10-100 depending on your finances) some apps allow fractional shares so you don’t need a lot to start.
See how you do.
The answer is always yes. Time in the market beats timing the market
Buy on the drop, sell on the rise…but then I have no idea. I probably heard that in a movie.
No. Too much uncertainty. If China and US stop trading then it will fall further. Trump needs to calm down.
Yes, but if you choose to buy, say, 10 stocks of Y company, do it periodically to even out the price. For example, by two shares every week because the price might keep going down or up.
1 – It could take a while for the stock to stop dropping. You might think 20% off something is a great deal until you buy in and it drops another 50%. Shit like this happened at the beginning of the pandemic.
2 – It could take even longer for the stock to regain value and surpass what you put into it. What good is making money off an investment if it takes 10 times longer to get that money than if you had just put it into a high yield savings account or a CD or something with a sooner maturity date.
Not sure I’d dump all my disposable income into the market. if my employer matches, sure, max out the 401k. otherwise, I’m lookin at tangibles like cash or precious metals and stuff em under the mattress.
If you have the money to yes, but a crash is also a time of financial turmoil, you might be in a stable job now, invest, get fired, need to take out the money, and end up loosing a lot because the market has gone down since you invested.
Basically it’s a great time to buy, if you are financially secure enough that you are absolutely sure that you won’t need that money any time soon, even if you lose your primary source of income.
Like there’s no guarantees regarding how long this is going to last or how low the markets will go, like they’ll probably recover eventually, but eventually could be a month, a year or even a decade if things go especially poorly.
Basically the rich get richer.
When the market corrects down 20% it has recovered above the 20% low within 6 months all but twice.
It could go lower, but historically, we’ll be higher than where we are now by the end of the year.
Trump changing his tune on tariffs would cause an immediate v shape recovery. Or he could keep committed and drive things down further. There’s no way to know.
The foolproof way is to stay I. The game and dollar cost average.
Buy the dip being the mantra
people are freaking out because for most, all they have is there 401K and they have been working their arses off in the hope they can retire without having to worry about money.
Then, megalomaniacs, despots and psychopaths start to play games with other peoples money and joe blogs who has been slaving away for 30 years sees his investment drop 10/20/30k in a week and it kind of sends people a bit crazy.
Some people who want to retire in the next 2 years or 5 years have just been kicked in the guts.
Now? While it continues to plummet? Sure, if you love to lose money.
You’re better off playing blackjack. The market is beyond rigged.
Long term, the best you can do is continue to invest small amounts at regular intervals. No one knows where the bottom will be and anyone who says they do is either a liar or trying to take advantage of you. If you can afford to make regular small purchases and have the discipline to hold them instead of selling for a loss, eventually you’ll end up ahead. It could be a long time though
While buying low is the goal timing the absolute bottom is impossible.
Buy the fucking dip! Then buy the further dip! Shit, another dip?! Well, it brings my dollar cost average down so fuck it, imma buy this dip!
Do you have lots of extra cash lying around? Sure thing, sport
But you can’t buy anything if you’ve lost what you already have in the market and can’t get out what’s left because you’re already under water with what you do own.
My ex is buying up real estate properties left and right, that’s his thing. He’s thrilled.
Do you think it’s hit the bottom yet?
I feel like this question is the same as asking I know the house is on fire but do you think it would be okay to move my stuff in.
Wait until you are sure that we have hit the bottom, and then wait another few weeks to be sure.