Can someone explain what's going on [with the stock market]?

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Topic Author
parigi723
Posts: 102
Joined: Mon May 16, 2011 6:42 am

Can someone explain what's going on [with the stock market]?

Post by parigi723 » Tue Nov 20, 2018 5:17 am

[Edited thread title for clarity - moderator prudent]

Hello:
With the stock market ????? I know that usually october is a shaking month,but it keeps going DOWN.Please explain if you know.
Many thanks in advance,parigi.

alwayshedge
Posts: 208
Joined: Sat Nov 30, 2013 7:43 pm

Re: Can someone explain what's going on..........

Post by alwayshedge » Tue Nov 20, 2018 5:20 am

Normal ebbs and flows..Could we be entering a bear market? We may already be in one...this is where your investment policy is truly tested. If you were honest with yourself about risk tolerance, you will be fine.

AlohaJoe
Posts: 4834
Joined: Mon Nov 26, 2007 2:00 pm
Location: Saigon, Vietnam

Re: Can someone explain what's going on..........

Post by AlohaJoe » Tue Nov 20, 2018 5:39 am

parigi723 wrote:
Tue Nov 20, 2018 5:17 am
With the stock market ????? I know that usually october is a shaking month,but it keeps going DOWN
Did you someone tell you that the stock market goes up every month?

jminv
Posts: 981
Joined: Tue Jan 02, 2018 10:58 pm

Re: Can someone explain what's going on..........

Post by jminv » Tue Nov 20, 2018 6:01 am

Stocks go up but they also go down.

I would say the market story is something along these lines: Fed raising rates and maybe misreading how healthy economy is, worries about global growth slowdown and trade issues that might feed that further, slowing company earnings/revenue growth, weak homebuilder sentiment, very long into the economic cycle/late stage of the cycle, oil prices dropping and maybe that means demand also dropping, and the fact that stocks have been dropping creates a lot of negative media stories which creates a negative investor sentiment feedback loop.

User avatar
JoMoney
Posts: 7640
Joined: Tue Jul 23, 2013 5:31 am

Re: Can someone explain what's going on..........

Post by JoMoney » Tue Nov 20, 2018 6:09 am

Yes, lots of people explain it on the hourly basis in the financial media.
There explanations have a very poor record for predicting how stock prices will react when similar situations repeat.
Zoom out on your stock chart, take a longer view. You'll see there's nothing out of the ordinary going on.
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham

carguyny
Posts: 350
Joined: Mon Aug 08, 2016 4:56 pm

Re: Can someone explain what's going on..........

Post by carguyny » Tue Nov 20, 2018 6:34 am

Many leading indicators right now continue to point to a global and US slowdown. Corporate debt to me has been the most likely cause of a next 50% drop and that is still getting worse.

I don't read the financial press, so not sure what they're saying.

peppers
Posts: 1389
Joined: Tue Oct 25, 2011 7:05 pm

Re: Can someone explain what's going on..........

Post by peppers » Tue Nov 20, 2018 6:36 am

"The bears have Thanksgiving and the bulls have Christmas."

It was a phrase I heard several times while watching Wall Street Week with Louis Rukeyser. Is it actionable?

"You pays your monies and you takes your chances".
"..the cavalry ain't comin' kid, you're on your own..."

PFInterest
Posts: 2684
Joined: Sun Jan 08, 2017 12:25 pm

Re: Can someone explain what's going on..........

Post by PFInterest » Tue Nov 20, 2018 6:45 am

parigi723 wrote:
Tue Nov 20, 2018 5:17 am
Hello:
With the stock market ????? I know that usually october is a shaking month,but it keeps going DOWN.Please explain if you know.
Many thanks in advance,parigi.
No one knows.
You should be happy. A sale is a sale.

Valuethinker
Posts: 38947
Joined: Fri May 11, 2007 11:07 am

Re: Can someone explain what's going on..........

Post by Valuethinker » Tue Nov 20, 2018 8:10 am

parigi723 wrote:
Tue Nov 20, 2018 5:17 am
Hello:
With the stock market ????? I know that usually october is a shaking month,but it keeps going DOWN.Please explain if you know.
Many thanks in advance,parigi.
There is no way of knowing if this is the beginning of a bear market, or just a correction.

What is happening is the market is getting jitters about the stocks which have led the bull market since about 2012 - the FAANGs + Microsoft, FB, Apple, Amazon, Google, Netflix. Apple and Amazon are down 20% from their 2018 highs, I believe.

Stock markets have up periods and down periods. We could well be in a down period. There's no way of telling how far down it will go or how long it will last.

FWIW it does not feel like a bear market (greater than 20% fall, sustained). There was not (yet) the euphoria that accompanies a true market top. In the run up to May 2000, in the summer before October 1987 (Black Tuesday - but was actually a year when the markets rose), up until 2007 there was a sense both that things were going crazy and you could not afford to be out of it, and a terrible foreboding. That was also true in 1929 I believe, the market had had quite a steep fall earlier in the year, but then recovered, before crashing in October.

But no one can tell you if the markets are going up next month, or down further.

goblue100
Posts: 991
Joined: Sun Dec 01, 2013 10:31 am

Re: Can someone explain what's going on..........

Post by goblue100 » Tue Nov 20, 2018 8:16 am

parigi723 wrote:
Tue Nov 20, 2018 5:17 am
Hello:
With the stock market ????? I know that usually october is a shaking month,but it keeps going DOWN.Please explain if you know.
Many thanks in advance,parigi.
This is nothing, really.
This is just volatility. If you can't handle this, check your to make sure your risk tolerance and asset allocation are set correctly.
Financial planners are savers. They want us to be 95 percent confident we can finance a 30-year retirement even though there is an 82 percent probability of being dead by then. - Scott Burns

Jordan4FI
Posts: 190
Joined: Mon May 28, 2018 11:00 am
Location: Honduras

Re: Can someone explain what's going on..........

Post by Jordan4FI » Tue Nov 20, 2018 8:23 am

What is going on is you have been a member since 2011, but only 90 posts? How much have you been involved in the past? Most people here that talk and invest and research, should be well aware that investing is not just an uphill path... in the long run it is but not short term.

I myself hope to see another 5-10% drop next year, so I can catch up with the share prices I missed out on during this quite well decade there has been.

User avatar
Kenkat
Posts: 5275
Joined: Thu Mar 01, 2007 11:18 am
Location: Cincinnati, OH

Re: Can someone explain what's going on..........

Post by Kenkat » Tue Nov 20, 2018 8:28 am

The market is still up for the year. That’s right - both the S&P 500 and Total Stock Indexes are still in positive territory for the year. It’s just off it’s all time high so it feels like something is wrong.

Try to take a much broader perspective on all of this. Short term market fluctuations always occur and they will continue to occur. While these fluctuations are interpreted as a call to action - the market is dropping, we must do something! - your best strategy is to tune it all out and keep investing per your plan.

User avatar
dwickenh
Posts: 1740
Joined: Sun Jan 04, 2015 9:45 pm
Location: Illinois

Re: Can someone explain what's going on..........

Post by dwickenh » Tue Nov 20, 2018 8:29 am

parigi723 wrote:
Tue Nov 20, 2018 5:17 am
Hello:
With the stock market ????? I know that usually october is a shaking month,but it keeps going DOWN.Please explain if you know.
Many thanks in advance,parigi.
This is the risk side of the equation. The market can go down a little, a lot, or somewhere in between. That is why it
pays better than cash and mostly better than bonds. Knowing it can go down helps.

Dan
The market is the most efficient mechanism anywhere in the world for transferring wealth from impatient people to patient people.” | — Warren Buffett

ge1
Posts: 484
Joined: Sat Apr 28, 2012 8:15 pm

Re: Can someone explain what's going on..........

Post by ge1 » Tue Nov 20, 2018 8:39 am

Valuethinker wrote:
Tue Nov 20, 2018 8:10 am

FWIW it does not feel like a bear market (greater than 20% fall, sustained). There was not (yet) the euphoria that accompanies a true market top. In the run up to May 2000, in the summer before October 1987 (Black Tuesday - but was actually a year when the markets rose), up until 2007 there was a sense both that things were going crazy and you could not afford to be out of it, and a terrible foreboding. That was also true in 1929 I believe, the market had had quite a steep fall earlier in the year, but then recovered, before crashing in October.

But no one can tell you if the markets are going up next month, or down further.
Not that this is actionable, but I think the exact opposite. To me it feels exactly like the early days of 2008 when people were worried about a 10-15% decrease in the main indices, but earnings were still strong and many thought this may just be a blip. And we know how it turned out. Obviously this is not a repeat of the financial crisis, but the incredible run up in prices in Netflix, Facebook, Amazon etc had the classic sign of a bubble - and now that bubble burst. And as the mentality changes from risk on to risk off, the weakness is spilling over into the broader US market.

Blueraidermike
Posts: 28
Joined: Fri Jun 08, 2018 11:31 am

Re: Can someone explain what's going on..........

Post by Blueraidermike » Tue Nov 20, 2018 8:44 am

I think the market will be fine. Once we get a deal with China and folks get used to paying 5% on their mortgage we will go up again.

The news in the US is mostly good, especially compared to the rest of the world. We will most likely have 3.5% GDP growth this year (highest since about 2003ish). Next year may not be as large of growth.

Just do what a boglehead does - get the right AA and be patient.

User avatar
Sandtrap
Posts: 8400
Joined: Sat Nov 26, 2016 6:32 pm
Location: Hawaii No Ka Oi , N. Arizona

Re: Can someone explain what's going on..........

Post by Sandtrap » Tue Nov 20, 2018 8:46 am

A bit of this:

1. The market goes down a little due to real economic factors.
2. Folks flee the market.
3. Market drops further.
4. More folks see the market dropping and sell in reaction. (Chicken Little).
5. Market drops.
6. Repeat >>>>
7. Mix in corporate reaction to market drops.
8. Repeat >>>
Wiki Bogleheads Wiki: Everything You Need to Know

User avatar
tennisplyr
Posts: 2326
Joined: Tue Jan 28, 2014 1:53 pm
Location: Sarasota, FL

Re: Can someone explain what's going on..........

Post by tennisplyr » Tue Nov 20, 2018 8:46 am

Relax, enjoy your Thanksgiving. All things end, both the good and the bad. All you can control is the way you react to these things,
Those who move forward with a happy spirit will find that things always work out.

TheOscarGuy
Posts: 930
Joined: Sat Oct 06, 2012 1:10 pm
Location: Where I wanna be.

Re: Can someone explain what's going on..........

Post by TheOscarGuy » Tue Nov 20, 2018 8:57 am

parigi723 wrote:
Tue Nov 20, 2018 5:17 am
Hello:
With the stock market ????? I know that usually october is a shaking month,but it keeps going DOWN.Please explain if you know.
Many thanks in advance,parigi.
My crystal ball is broken at the moment.

Shallowpockets
Posts: 1328
Joined: Fri Nov 20, 2015 10:26 am

Re: Can someone explain what's going on..........

Post by Shallowpockets » Tue Nov 20, 2018 9:23 am

The S&P index is about where it was at the start of the year. Today may well go below that. Quite a drop. Nothing gained this year so far.
May as well wait it out. Although many BHs look upon this with much glee and actually hope for more and more of a drop. This is due to some sort of reality that they now can buy low get in more index purchases. Some of them, still, waiting. For the bottom. Just as you can't call the top, you can't call the bottom.
We have essentially lost a year here. Even significant to those wih a 30 year time horizon. You cannot get back time.
Not all of us thinking this way. Many of us retired, or near retirement. This drop is not good for the soul. Even with stay the course attitude you cannot help but wonder how long it will go on and how far down. even more so, how long to move back up.
We all think the long game, but we feel the short game. Perhaps retracting our spending. The wealth effect in reverse. That affects the economy. And so on, and so on.

Market close S and P December 29, 2017- 2689
Market close yesterday. - 2690

User avatar
Tycoon
Posts: 1500
Joined: Wed Mar 28, 2012 7:06 pm

Re: Can someone explain what's going on [with the stock market]?

Post by Tycoon » Tue Nov 20, 2018 9:45 am

Using this site as an indicator, more talk about CD and Bond rates, folks are moving money to safer instruments. Three is a magic number. (Sung to the tune of Shool House Rocks)

Where did those 100% Stock threads go?
Emotionless, prognostication free investing. Ignoring the noise and economists since 1979. Some are predisposed to consistently lose money. Don't be a sheep.

veggivet
Posts: 427
Joined: Sun Jan 25, 2015 1:07 pm
Location: New England

Re: Can someone explain what's going on [with the stock market]?

Post by veggivet » Tue Nov 20, 2018 9:48 am

You mean stocks go down?? Who knew?? :oops:
If you watch your pennies, your dollars will take care of themselves.

TheOscarGuy
Posts: 930
Joined: Sat Oct 06, 2012 1:10 pm
Location: Where I wanna be.

Re: Can someone explain what's going on..........

Post by TheOscarGuy » Tue Nov 20, 2018 9:57 am

Shallowpockets wrote:
Tue Nov 20, 2018 9:23 am

We have essentially lost a year here. Even significant to those wih a 30 year time horizon. You cannot get back time.
Really? This one month drop is going to look significant after 30 years. I understand you can not go back in time. But you do realize that in all likelihood market would be much higher in 30 years. And this one-two month drop is not going to register at all. Whatever you 'lost' would be more than offset in gains in 30 years.

User avatar
Peculiar_Investor
Posts: 1301
Joined: Thu Oct 20, 2011 12:23 am
Location: Calgary, AB
Contact:

Re: Can someone explain what's going on [with the stock market]?

Post by Peculiar_Investor » Tue Nov 20, 2018 10:02 am

There are almost 8000 (and counting) posts in viewtopic.php?f=10&t=80065 that attempt an explanation.

For a bit of humour, Google "Bird and Fortune investment banker" for another, equally valid viewpoint.

Bottom line, no one knows so pick an asset allocation you are comfortable with and that fits your risk tolerance, then just stay the course.
Normal people… believe that if it ain’t broke, don’t fix it. Engineers believe that if it ain’t broke, it doesn’t have enough features yet. – Scott Adams

WonderingDope
Posts: 22
Joined: Tue Oct 30, 2018 4:02 pm

Re: Can someone explain what's going on..........

Post by WonderingDope » Tue Nov 20, 2018 10:04 am

Shallowpockets wrote:
Tue Nov 20, 2018 9:23 am
The S&P index is about where it was at the start of the year. Today may well go below that. Quite a drop. Nothing gained this year so far.
May as well wait it out. Although many BHs look upon this with much glee and actually hope for more and more of a drop. This is due to some sort of reality that they now can buy low get in more index purchases. Some of them, still, waiting. For the bottom. Just as you can't call the top, you can't call the bottom.
We have essentially lost a year here. Even significant to those wih a 30 year time horizon. You cannot get back time.
Not all of us thinking this way. Many of us retired, or near retirement. This drop is not good for the soul. Even with stay the course attitude you cannot help but wonder how long it will go on and how far down. even more so, how long to move back up.
We all think the long game, but we feel the short game. Perhaps retracting our spending. The wealth effect in reverse. That affects the economy. And so on, and so on.

Market close S and P December 29, 2017- 2689
Market close yesterday. - 2690
The stock market doesn't go up every year. Did you not notice that? You say "those of us at or near retirement" so I am assuming you have been at this a while. If so can you explain how you didn't notice how the stock market doesn't go up every year please.

Thanks.

MDCrab
Posts: 19
Joined: Mon May 07, 2018 4:39 pm

Re: Can someone explain what's going on [with the stock market]?

Post by MDCrab » Tue Nov 20, 2018 10:37 am

I won’t retire for another 20 years. I’m happy stocks are on sale right now. I bought this morning.

Rudedog
Posts: 137
Joined: Wed Aug 01, 2018 3:15 pm

Re: Can someone explain what's going on [with the stock market]?

Post by Rudedog » Tue Nov 20, 2018 10:41 am

S & P was at 2,377 earlier this summer, you are still ahead for the year. I'm buying Microsoft if it gets much below $ 100. Not sure about AT&T, I may buy some more of it.

veggivet
Posts: 427
Joined: Sun Jan 25, 2015 1:07 pm
Location: New England

Re: Can someone explain what's going on [with the stock market]?

Post by veggivet » Tue Nov 20, 2018 10:43 am

MDCrab wrote:
Tue Nov 20, 2018 10:37 am
I won’t retire for another 20 years. I’m happy stocks are on sale right now. I bought this morning.
I'm retired. I'm happy stocks are on sale right now. I bought yesterday and more this morning.
If you watch your pennies, your dollars will take care of themselves.

Highfeehater
Posts: 33
Joined: Fri Aug 10, 2018 10:18 pm

Re: Can someone explain what's going on [with the stock market]?

Post by Highfeehater » Tue Nov 20, 2018 11:15 am

I have been frequenting the BH site for only a few months and it's interesting to see the emotions that are initiated with a downturn of the market (as well as a rise in it). I am not an expert, by any means, in finance or investing but I am wise enough to know there are plenty of BGs on this forum that have said it over and over. Be truthful with yourself and set your AA at a place where a real drop will still let you sleep at night and you won't have to watch the talking heads who spew the negative news. I feel very fortunate I ran across this forum when I did but the hardest part of the journey has been getting my AA right, but I am there and it was worth the time.

Whatever you do don't panic and sell your investments at a loss. I know several friends who did just that in the last bear and cried at their loss-but they created it! IT never made any sense to me then and it doesn't now. Nothing new being said but I just wanted to reinterate what has been over and over: You can't time the market, no one knows where it's going day to day, if prices go up they will come down (which makes for better reinvestment prices), and you need to Have a long term vision for your investments, etc,etc. It is a lifestyle, if I may say so. The advice is good and it's free. I see opportunity on the horizon. Thanks to all you regular contributing BHs.

Thanks, enjoy the ride!

SchruteB&B
Posts: 175
Joined: Mon Jul 02, 2018 7:48 am

Re: Can someone explain what's going on..........

Post by SchruteB&B » Tue Nov 20, 2018 12:03 pm

Jordan4FI wrote:
Tue Nov 20, 2018 8:23 am
What is going on is you have been a member since 2011
I am always suprised when I see posters who have been on the board for a number of years questioning volatility. What were your thoughts back in August 2011 when the market was down almost 20%? And there have been several 10%+ declines since then. What has you so spooked about this one?

User avatar
Phineas J. Whoopee
Posts: 8690
Joined: Sun Dec 18, 2011 6:18 pm

Re: Can someone explain what's going on [with the stock market]?

Post by Phineas J. Whoopee » Tue Nov 20, 2018 12:52 pm

Yes. I can.

The value of a stock portfolio does not behave like the balance of a savings account. Expecting it to do so is a serious mistake.

PJW
Last edited by Phineas J. Whoopee on Tue Nov 20, 2018 12:58 pm, edited 1 time in total.

User avatar
jhfenton
Posts: 4189
Joined: Sat Feb 07, 2015 11:17 am
Location: Ohio

Re: Can someone explain what's going on [with the stock market]?

Post by jhfenton » Tue Nov 20, 2018 12:57 pm

parigi723 wrote:
Tue Nov 20, 2018 5:17 am
Hello:
With the stock market ????? I know that usually october is a shaking month,but it keeps going DOWN.Please explain if you know.
Many thanks in advance,parigi.
Absolutely nothing out of the ordinary is going on. 2018 has been a perfectly normal year for markets. 2017 was actually the unusual year, with unusually low volatility.

User avatar
galeno
Posts: 1576
Joined: Fri Dec 21, 2007 12:06 pm

Re: Can someone explain what's going on [with the stock market]?

Post by galeno » Tue Nov 20, 2018 1:15 pm

The whole idea of being a Boglehead is that it should not matter. Stick with your plan.
AA = 40/55/5. Expected CAGR = 3.8%. GSD (5y) = 6.2%. USD inflation (10 y) = 1.8%. AWR = 4.0%. TER = 0.4%. Port Yield = 2.82%. Term = 33 yr. FI Duration = 6.0 yr. Portfolio survival probability = 95%.

User avatar
arcticpineapplecorp.
Posts: 4433
Joined: Tue Mar 06, 2012 9:22 pm

Re: Can someone explain what's going on [with the stock market]?

Post by arcticpineapplecorp. » Tue Nov 20, 2018 1:16 pm

parigi723 wrote:
Tue Nov 20, 2018 5:17 am
Hello:
With the stock market ????? I know that usually october is a shaking month,but it keeps going DOWN.Please explain if you know.
Many thanks in advance,parigi.
Mark Twain explained it a long time ago:
“October: This is one of the peculiarly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.”

― Mark Twain, Pudd'nhead Wilson
Also, it doesn't "keep" going down. It "has" gone down. You only know what happened in the past, not the future. If 20 years from now the market is much higher than it is or was up to this point, how could you possibly say "It keeps going DOWN"???

See how you're only considering the short term, but not the long term?

What's your time horizon? If it's decades, then why do you care what happens over days, weeks, months or even years?

If you can't stand the heat, get out of the kitchen. I'll be happy to buy the shares you sell me at lower prices.
"May you live as long as you want and never want as long as you live" -- Irish Blessing | "Invest we must" -- Jack Bogle

User avatar
Ged
Posts: 3822
Joined: Mon May 13, 2013 1:48 pm
Location: Roke

Re: Can someone explain what's going on [with the stock market]?

Post by Ged » Tue Nov 20, 2018 1:20 pm

No, it is inexplicable. Like the motions of a particular molecule of gas in a room it is unpredictable.

The longer term, bulk motion of both the gas and the market is much more certain. The best approach is to base your actions on what is predictable.

User avatar
CyclingDuo
Posts: 2625
Joined: Fri Jan 06, 2017 9:07 am

Re: Can someone explain what's going on [with the stock market]?

Post by CyclingDuo » Tue Nov 20, 2018 1:20 pm

parigi723 wrote:
Tue Nov 20, 2018 5:17 am
Hello:
With the stock market ????? I know that usually october is a shaking month,but it keeps going DOWN.Please explain if you know.
Many thanks in advance,parigi.
Reminder of what it is doing and 8 bullet points to remember:

Image
"Everywhere is within walking distance if you have the time." ~ Steven Wright

flyingaway
Posts: 2492
Joined: Fri Jan 17, 2014 10:19 am

Re: Can someone explain what's going on [with the stock market]?

Post by flyingaway » Tue Nov 20, 2018 1:23 pm

100% in stock funds?

User avatar
unclescrooge
Posts: 3870
Joined: Thu Jun 07, 2012 7:00 pm

Re: Can someone explain what's going on..........

Post by unclescrooge » Tue Nov 20, 2018 1:24 pm

WonderingDope wrote:
Tue Nov 20, 2018 10:04 am
Shallowpockets wrote:
Tue Nov 20, 2018 9:23 am
The S&P index is about where it was at the start of the year. Today may well go below that. Quite a drop. Nothing gained this year so far.
May as well wait it out. Although many BHs look upon this with much glee and actually hope for more and more of a drop. This is due to some sort of reality that they now can buy low get in more index purchases. Some of them, still, waiting. For the bottom. Just as you can't call the top, you can't call the bottom.
We have essentially lost a year here. Even significant to those wih a 30 year time horizon. You cannot get back time.
Not all of us thinking this way. Many of us retired, or near retirement. This drop is not good for the soul. Even with stay the course attitude you cannot help but wonder how long it will go on and how far down. even more so, how long to move back up.
We all think the long game, but we feel the short game. Perhaps retracting our spending. The wealth effect in reverse. That affects the economy. And so on, and so on.

Market close S and P December 29, 2017- 2689
Market close yesterday. - 2690
The stock market doesn't go up every year. Did you not notice that? You say "those of us at or near retirement" so I am assuming you have been at this a while. If so can you explain how you didn't notice how the stock market doesn't go up every year please.

Thanks.
"The market crashes every 10 years. Unfortunately people's memories only last 5."

That was something i once heard at a real estate meeting, but it's probably applicable here too.

User avatar
whodidntante
Posts: 6526
Joined: Thu Jan 21, 2016 11:11 pm
Location: outside the echo chamber

Re: Can someone explain what's going on [with the stock market]?

Post by whodidntante » Tue Nov 20, 2018 1:37 pm

Your stocks are worth more bitcoin than at the peak. :happy

Alex GR
Posts: 88
Joined: Mon Jul 31, 2017 9:17 am

Re: Can someone explain what's going on [with the stock market]?

Post by Alex GR » Tue Nov 20, 2018 3:14 pm

Parigi sounds like me about a week ago.
I honestly have not checked the account for a week. It's probably even lower now.
In my case, forming a portfolio and investing was not a mistake, not setting the right allocation was. The question remains, should I change it immediately or wait for the market to recover. Selling now(in favor of bonds) would seem like panic selling.

User avatar
Toons
Posts: 13388
Joined: Fri Nov 21, 2008 10:20 am
Location: Hills of Tennessee

Re: Can someone explain what's going on [with the stock market]?

Post by Toons » Tue Nov 20, 2018 3:16 pm

Gravity :happy
"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee

MJS
Posts: 410
Joined: Sat Aug 05, 2017 10:55 pm

Re: Can someone explain what's going on [with the stock market]?

Post by MJS » Tue Nov 20, 2018 5:17 pm

This is the beginning of The Singularity; the computers hosting Wall Street's algorithms have transcended.
They are being a bit playful, but who knows what will come next. Smash your computers and invest in aluminum.

Dottie57
Posts: 6931
Joined: Thu May 19, 2016 5:43 pm
Location: Earth Northern Hemisphere

Re: Can someone explain what's going on [with the stock market]?

Post by Dottie57 » Tue Nov 20, 2018 5:27 pm

MJS wrote:
Tue Nov 20, 2018 5:17 pm
This is the beginning of The Singularity; the computers hosting Wall Street's algorithms have transcended.
They are being a bit playful, but who knows what will come next. Smash your computers and invest in aluminum.
I think it likely The Machine.
/root

User avatar
JoeRetire
Posts: 3428
Joined: Tue Jan 16, 2018 2:44 pm

Re: Can someone explain what's going on [with the stock market]?

Post by JoeRetire » Tue Nov 20, 2018 5:38 pm

parigi723 wrote:
Tue Nov 20, 2018 5:17 am
With the stock market ????? I know that usually october is a shaking month,but it keeps going DOWN.Please explain if you know.
It appears that because October was a "shaking" month that you expected the market to go up in November?

There's still time left in the month. So far, your expectations have been incorrect. At the moment, 2018 has been a down year overall. That may or may not continue.

Bacchus01
Posts: 3182
Joined: Mon Dec 24, 2012 9:35 pm

Re: Can someone explain what's going on [with the stock market]?

Post by Bacchus01 » Tue Nov 20, 2018 5:46 pm

It’s gone down.

It might go up.

It might go down more.

It might go up and down.

It might go down and up.

It’s just noise.

User avatar
onthecusp
Posts: 712
Joined: Mon Aug 29, 2016 3:25 pm

Re: Can someone explain what's going on [with the stock market]?

Post by onthecusp » Tue Nov 20, 2018 5:51 pm

2008 was a bad year for stocks and worse for the economy as a whole.

As far as stocks are concerned, after the recent sell off we are still over 1000 S&P points above the peak before the 2008 selloff; and no, I can't explain why the stock market is doing so well!

sschullo
Posts: 2510
Joined: Sun Apr 01, 2007 8:25 am
Location: Rancho Mirage, CA
Contact:

Re: Can someone explain what's going on [with the stock market]?

Post by sschullo » Tue Nov 20, 2018 6:01 pm

Uncertainty at work.
It's what happens after euphoria, or before, who knows? It's uncertainty at work.
Public School K-12 Educators: "Ask NOT what your annuity sales person can do for you, ask what you can do to be a Do-It-Yourselfer (DIY)."

palaheel
Posts: 209
Joined: Wed Mar 22, 2017 7:35 am

Re: Can someone explain what's going on [with the stock market]?

Post by palaheel » Tue Nov 20, 2018 6:08 pm

At least I haven't heard that ancient curse: "This is the new normal."
Markets crash. Markets recover. Inflation takes your money FOREVER.

sailaway
Posts: 744
Joined: Fri May 12, 2017 1:11 pm

Re: Can someone explain what's going on [with the stock market]?

Post by sailaway » Tue Nov 20, 2018 6:12 pm

palaheel wrote:
Tue Nov 20, 2018 6:08 pm
At least I haven't heard that ancient curse: "This is the new normal."
Well, considering it is the old normal, I guess it could also be the new normal.

Grt2bOutdoors
Posts: 21356
Joined: Thu Apr 05, 2007 8:20 pm
Location: New York

Re: Can someone explain what's going on [with the stock market]?

Post by Grt2bOutdoors » Tue Nov 20, 2018 6:15 pm

More sellers than buyers. Prices are falling until enough buyers step in to stop the fall.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

Grt2bOutdoors
Posts: 21356
Joined: Thu Apr 05, 2007 8:20 pm
Location: New York

Re: Can someone explain what's going on..........

Post by Grt2bOutdoors » Tue Nov 20, 2018 6:18 pm

Kenkat wrote:
Tue Nov 20, 2018 8:28 am
The market is still up for the year. That’s right - both the S&P 500 and Total Stock Indexes are still in positive territory for the year. It’s just off it’s all time high so it feels like something is wrong.

Try to take a much broader perspective on all of this. Short term market fluctuations always occur and they will continue to occur. While these fluctuations are interpreted as a call to action - the market is dropping, we must do something! - your best strategy is to tune it all out and keep investing per your plan.
If you were so astute to have invested ALL of your money on January 1, yeah, you're still up. However, most folks who invest, do so when they get their hands on the actual money and chances are good, January 1 or 2 was not the day they invested. Hence, most folks who've invested this year are likely to be somewhere between flat to down, especially if you've invested at the market peak.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

Post Reply