U.S. stocks in freefall

Discuss all general (i.e. non-personal) investing questions and issues, investing news, and theory.
thangngo
Posts: 975
Joined: Sun Feb 26, 2017 2:08 pm

Re: U.S. stocks in freefall

Post by thangngo » Fri Feb 02, 2018 3:09 pm

triceratop wrote:
Fri Feb 02, 2018 11:44 am
I bought VSS and VGIT today. Foreign stocks fell more.
And now... I'll put my order in. It's going to total U.S. stock and total International stock funds. Hopefully the NAV at the end of the day will be the lowest point.

RRAAYY3
Posts: 926
Joined: Thu Jan 17, 2013 12:32 pm

Re: U.S. stocks in freefall

Post by RRAAYY3 » Fri Feb 02, 2018 3:13 pm

Total Int’l is having a lovely sale over the last 2 Days as well

Today’s “plunge” plus buying Int’l may have put me right at my 50/50 target allocation

Get paid next week, I’ll let the market decides where that goes

(Us still up for the year by the way)

lostdog
Posts: 927
Joined: Thu Feb 04, 2016 2:15 pm

Re: U.S. stocks in freefall

Post by lostdog » Fri Feb 02, 2018 3:17 pm

Yes International is having a nice sale. 50/50 US/International. Roth contributions into international go in next Friday.
100% Vanguard Total World Equity Index. Simplicity 100%.

RRAAYY3
Posts: 926
Joined: Thu Jan 17, 2013 12:32 pm

Re: U.S. stocks in freefall

Post by RRAAYY3 » Fri Feb 02, 2018 3:18 pm

All my money has gone to int’l this year, and with today’s drop I may have reached my target AA ... dumped more in this month than I was planning to - but couldn’t ignore the drops last 2 Days

Paid next week - looks like the markets will now officially tell me which one to buy going forward

User avatar
SquawkIdent
Posts: 372
Joined: Tue Dec 23, 2008 7:14 pm

Re: U.S. stocks in freefall

Post by SquawkIdent » Fri Feb 02, 2018 3:19 pm

eye.surgeon wrote:
Fri Feb 02, 2018 3:08 pm
I doubled my regular monthly purchase of VTSAX (total stock market) on the big drop today. Be greedy when others are scared.
Huh? A 2 percent drop? After the rise we have had, this is peanuts. Now October 1987, that was a big one day drop. This could only be the beginning... :sharebeer

furnace
Posts: 284
Joined: Tue Oct 20, 2015 3:38 pm

Re: U.S. stocks in freefall

Post by furnace » Fri Feb 02, 2018 3:20 pm

I would love for 10year bond yields to get to 3%. Too many savers have been hurt by low rates, which have rewarded speculators and others. Moderately higher rates would reign in cheap, reckless money and would be healthy over the longer term.

User avatar
Doom&Gloom
Posts: 1943
Joined: Thu May 08, 2014 3:36 pm

Re: U.S. stocks in freefall

Post by Doom&Gloom » Fri Feb 02, 2018 3:20 pm

Yesterday I sold the last bit of my holdings I needed to sell for my RMD this year. I had sold the bulk of what was needed in January. It appears that I could be a market-forecasting savant. I may establish an advisory service next week if we don't get history's biggest dead cat bounce on Monday.

In the meantime, I will join others itt with a stiff upper lip and hope I can still whistle past the graveyard if necessary.

I do love this thread!

User avatar
Dale_G
Posts: 3033
Joined: Tue Feb 20, 2007 5:43 pm
Location: Central Florida - on the grown up side of 81

Re: U.S. stocks in freefall

Post by Dale_G » Fri Feb 02, 2018 3:21 pm

So the S&P500 is down 60 at this point today, but still 1% higher than the beginning of January 2018 and 20% higher than a year ago.

I don't get excited about puny 2% down days after the market has been ballistic on the upside. I rebalanced out of equities in the 3rd quarter of 2017 and January of 2018. I'll begin rebalancing into equities after another 250 S&P point drop.

So, pretty much ho-hum for a while.

Dale
Volatility is my friend

Da5id
Posts: 2035
Joined: Fri Feb 26, 2016 8:20 am

Re: U.S. stocks in freefall

Post by Da5id » Fri Feb 02, 2018 3:22 pm

furnace wrote:
Fri Feb 02, 2018 3:20 pm
I would love for 10year bond yields to get to 3%. Too many savers have been hurt by low rates, which have rewarded speculators and others. Moderately higher rates would reign in cheap, reckless money and would be healthy over the longer term.
I guess. Depends on what real rates are. If inflation picks up, the higher bond yields will not result in higher real rates... That said, I'd like a better real return on my fixed income myself.

RRAAYY3
Posts: 926
Joined: Thu Jan 17, 2013 12:32 pm

Re: U.S. stocks in freefall

Post by RRAAYY3 » Fri Feb 02, 2018 3:23 pm

I love this site - the panic from others = “sale” for us

Happy Friday BH !

User avatar
AnalogKid22
Posts: 116
Joined: Wed May 18, 2016 8:26 pm
Location: Babylon, but I'd love to spend a night in Zion

Re: U.S. stocks in freefall

Post by AnalogKid22 » Fri Feb 02, 2018 3:23 pm

azanon wrote:
Fri Feb 02, 2018 2:00 pm
jrbdmb wrote:
Fri Feb 02, 2018 1:20 pm
Could the explanation be as simple as rising bond rates make stocks relatively less attractive?
I plan on watching Cramer tonight, so I can let you know what it was by tomorrow. He usually knows.
https://www.msn.com/en-us/money/video/j ... vi-BBICPBL

vested1
Posts: 1457
Joined: Wed Jan 04, 2012 4:20 pm

Re: U.S. stocks in freefall

Post by vested1 » Fri Feb 02, 2018 3:25 pm

Makes me happy that I rebalanced last week after surpassing my bands. Still up significantly from 1/1/18, and if I wasn't, so what? Gotta go, time for my nap.

lostdog
Posts: 927
Joined: Thu Feb 04, 2016 2:15 pm

Re: U.S. stocks in freefall

Post by lostdog » Fri Feb 02, 2018 3:29 pm

I see the term FOMO(Fear of missing out) in past articles on the rally. Do you feel FOMO on sale days like these?
100% Vanguard Total World Equity Index. Simplicity 100%.

Halicar
Posts: 75
Joined: Tue Oct 31, 2017 8:41 am
Location: Midwest

Re: U.S. stocks in freefall

Post by Halicar » Fri Feb 02, 2018 3:33 pm

fantasytensai wrote:
Fri Feb 02, 2018 2:23 pm
More people are selling than are buying.
Maybe I'm just being dense, but by definition, every time someone sells a stock, someone else buys it. So there can never be more people selling than buying, no?

zeugmite
Posts: 1012
Joined: Tue Jul 22, 2008 11:48 pm

Re: U.S. stocks in freefall

Post by zeugmite » Fri Feb 02, 2018 3:36 pm

eye.surgeon wrote:
Fri Feb 02, 2018 3:08 pm
I doubled my regular monthly purchase of VTSAX (total stock market) on the big drop today. Be greedy when others are scared.
Are they sufficiently scared? I think we're getting closer to people being scared in the bond market, but the stock market?

User avatar
bligh
Posts: 766
Joined: Wed Jul 27, 2016 9:13 pm

Re: U.S. stocks in freefall

Post by bligh » Fri Feb 02, 2018 3:37 pm

lostdog wrote:
Fri Feb 02, 2018 3:29 pm
I see the term FOMO(Fear of missing out) in past articles on the rally. Do you feel FOMO on sale days like these?
I do :( ... I wish I had some cash coming in at the moment so I could buy on an RBD like today.

desafinado
Posts: 75
Joined: Wed Dec 28, 2016 3:14 am

Re: U.S. stocks in freefall

Post by desafinado » Fri Feb 02, 2018 3:38 pm

Halicar wrote:
Fri Feb 02, 2018 3:33 pm
fantasytensai wrote:
Fri Feb 02, 2018 2:23 pm
More people are selling than are buying.
Maybe I'm just being dense, but by definition, every time someone sells a stock, someone else buys it. So there can never be more people selling than buying, no?
There can be a greater volume of sell orders or buy orders, but not all orders must be filled. And certainly more people can be selling than buying. Suppose I want to buy 100 shares of VTI and each of you sells me 1. Then there are 100 sellers and only 1 buyer.

User avatar
sergeant
Posts: 800
Joined: Tue Dec 04, 2007 11:13 pm

Re: U.S. stocks in freefall

Post by sergeant » Fri Feb 02, 2018 3:39 pm

lostdog wrote:
Fri Feb 02, 2018 10:38 am
RBD today?
No. It's Friday.
Lincoln 3 EOW!

User avatar
Portfolio7
Posts: 373
Joined: Tue Aug 02, 2016 3:53 am

Re: U.S. stocks in freefall

Post by Portfolio7 » Fri Feb 02, 2018 3:39 pm

I couldn't rebalance my 401k last weekend due to a hitch at my employer's interface, my request got bounced. Bummer.

Well, I guess I'm rebalanced now. :wink:
An investment in knowledge pays the best interest.

User avatar
rcjchicity
Posts: 167
Joined: Fri Nov 29, 2013 5:07 pm
Location: Where do you think?

Re: U.S. stocks in freefall

Post by rcjchicity » Fri Feb 02, 2018 3:40 pm

It's a 401k contribution day for me - yay :D

zeugmite
Posts: 1012
Joined: Tue Jul 22, 2008 11:48 pm

Re: U.S. stocks in freefall

Post by zeugmite » Fri Feb 02, 2018 3:40 pm

Halicar wrote:
Fri Feb 02, 2018 3:33 pm
fantasytensai wrote:
Fri Feb 02, 2018 2:23 pm
More people are selling than are buying.
Maybe I'm just being dense, but by definition, every time someone sells a stock, someone else buys it. So there can never be more people selling than buying, no?
There can certainly be more people selling than buying. There shouldn't be more volume of completed selling than buying.

User avatar
parsi1
Posts: 260
Joined: Tue May 29, 2012 8:03 am

Re: U.S. stocks in freefall

Post by parsi1 » Fri Feb 02, 2018 3:49 pm

azanon wrote:
Fri Feb 02, 2018 2:00 pm
jrbdmb wrote:
Fri Feb 02, 2018 1:20 pm
Could the explanation be as simple as rising bond rates make stocks relatively less attractive?
I plan on watching Cramer tonight, so I can let you know what it was by tomorrow. He usually knows.
:confused :D :oops: :sharebeer :idea:

lostdog
Posts: 927
Joined: Thu Feb 04, 2016 2:15 pm

Re: U.S. stocks in freefall

Post by lostdog » Fri Feb 02, 2018 3:52 pm

bligh wrote:
Fri Feb 02, 2018 3:37 pm
lostdog wrote:
Fri Feb 02, 2018 3:29 pm
I see the term FOMO(Fear of missing out) in past articles on the rally. Do you feel FOMO on sale days like these?
I do :( ... I wish I had some cash coming in at the moment so I could buy on an RBD like today.
Me too.
100% Vanguard Total World Equity Index. Simplicity 100%.

User avatar
bligh
Posts: 766
Joined: Wed Jul 27, 2016 9:13 pm

Re: U.S. stocks in freefall

Post by bligh » Fri Feb 02, 2018 3:53 pm

These delighted posts will look so sad if this is the start of a deep, multi year bear market. :shock:

mffl
Posts: 76
Joined: Wed Dec 06, 2017 7:25 pm

Re: U.S. stocks in freefall

Post by mffl » Fri Feb 02, 2018 3:59 pm

Gufomel wrote:
Fri Feb 02, 2018 2:56 pm
ray.james wrote:
Fri Feb 02, 2018 2:45 pm
Gufomel wrote:
Fri Feb 02, 2018 2:37 pm
ray.james wrote:
Fri Feb 02, 2018 2:32 pm
Faisal wrote:
Fri Feb 02, 2018 2:21 pm
Anybody know the reason for the fall? I am confused as the US economy is growing, the job market is tight, earnings are decent and the world economy seems to be picking up.

Internationally Oil prices are increasing as is demand, there is no real war that can or may break out. Syria, Iraq, Afghanistan and Pakistan are all factored in.

I am confused.
If I have to guess :
Inflation expectations are going wayy up(tight market, wages, jobs, tax cuts). =>
Bond yields needed are going up(Wages, deficit)

Consider what P/E represents for a minute. With a forward P/E of 20, we are paying 20 bucks for a dollar of earnings. 5%. If forward inflation is 3.5%, would I rather do 3.5% in bonds or take a whole lot of risk for extra 1% yield ? As always, I know nothing and have been wrong several times.
I understood mffl above to be saying that the market decline today may be partly related to lower than expected inflation. You seem to be saying it's related to higher than expected inflation.

Are y'all saying that same thing and I'm just misunderstanding, or the opposite (that's fine if so, just trying to understand)?
I did not understand his post. Why would fed raise rates 4 times instead of 3 because of lower inflation. Isn't raising rates one of the tools to control inflation?

Also, as a preamble, it is a bit premature/useless to rationalize a single day drop...The inflation expectation will play out over next few months. Also the growth from the cash reparation, expected investments from different companies, corporate tax slashing will also try to raise the earnings. No one can predict what the end result on market will be and what will the end outcome of these.
I think what he was saying is that there is higher expectation now that the fed will increase rates, which would lower inflation (not that they would increase rates because of lower inflation).
Yes, this is what I was saying. With an additional rate hike, we would expect inflation now to be lower than without it. Of course, data that portended higher inflation was the impetus for the anticipated extra hike in the first place, so there's some circular logic there. But with the USD showing stronger, at the time I was saying all that, the S&P was down 1% and many metrics showed the USD (which is what the S&P is denominated in) up roughly 1%, which could be a wash depending on your perspective. But now the S&P is down over 2% and USD up maybe 0.7% (ticker UUP is a reasonable proxy for this). I still could be right about *part* of the effect, but I'm now obviously wrong about the two coming close to netting out.

thangngo
Posts: 975
Joined: Sun Feb 26, 2017 2:08 pm

Re: U.S. stocks in freefall

Post by thangngo » Fri Feb 02, 2018 4:02 pm

bligh wrote:
Fri Feb 02, 2018 3:53 pm
These delighted posts will look so sad if this is the start of a deep, multi year bear market. :shock:
I doubt it. Accumulators will rejoin. Retiree group will moan. But this buying on 2% sale Friday will be forgotten come Monday.

DanMahowny
Posts: 287
Joined: Sun Aug 06, 2017 8:25 pm

Re: U.S. stocks in freefall

Post by DanMahowny » Fri Feb 02, 2018 4:08 pm

bligh wrote:
Fri Feb 02, 2018 3:53 pm
These delighted posts will look so sad if this is the start of a deep, multi year bear market. :shock:
Indeed. I hope this week is the beginning of a multi-year 50% decline in equities.

2Birds1Stone
Posts: 445
Joined: Wed Nov 19, 2014 10:33 pm
Location: New York

Re: U.S. stocks in freefall

Post by 2Birds1Stone » Fri Feb 02, 2018 4:09 pm

This is just the start of a much needed correction.

User avatar
willthrill81
Posts: 4161
Joined: Thu Jan 26, 2017 3:17 pm
Location: USA

Re: U.S. stocks in freefall

Post by willthrill81 » Fri Feb 02, 2018 4:11 pm

bligh wrote:
Fri Feb 02, 2018 3:53 pm
These delighted posts will look so sad if this is the start of a deep, multi year bear market. :shock:
Being a trend follower who still has a good 15 years until retirement, I would be very pleased indeed to see that happen.

But stocks would have to drop about another 8% before I will do anything.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings

cashmoney
Posts: 118
Joined: Thu Jun 29, 2017 11:15 pm

Re: U.S. stocks in freefall

Post by cashmoney » Fri Feb 02, 2018 4:11 pm

lostdog wrote:
Fri Feb 02, 2018 3:52 pm
bligh wrote:
Fri Feb 02, 2018 3:37 pm
lostdog wrote:
Fri Feb 02, 2018 3:29 pm
I see the term FOMO(Fear of missing out) in past articles on the rally. Do you feel FOMO on sale days like these?
I do :( ... I wish I had some cash coming in at the moment so I could buy on an RBD like today.
Me too.
IWell I did have money to put in the market today about 100k - only problem is it was at the market open.I am ruined!!! On paper anyway

User avatar
AnalogKid22
Posts: 116
Joined: Wed May 18, 2016 8:26 pm
Location: Babylon, but I'd love to spend a night in Zion

Re: U.S. stocks in freefall

Post by AnalogKid22 » Fri Feb 02, 2018 4:14 pm

The BH philosophy is to not market time, yet the majority of posts are about just that. There will be a lot of unhappy people when things take an ugly turn.

"I know I shouldn't market time, but..."

User avatar
nisiprius
Advisory Board
Posts: 35875
Joined: Thu Jul 26, 2007 9:33 am
Location: The terrestrial, globular, planetary hunk of matter, flattened at the poles, is my abode.--O. Henry

Re: U.S. stocks in freefall

Post by nisiprius » Fri Feb 02, 2018 4:16 pm

(Awaking from afternoon nap)... wuzza... huh... why freefall thread up again, better check, where are my glasses, darn it, can't find 'em... did something happen?

Image

...nah, nuthin'... honey, any decaf left? yeah? bring me some wouldja, I think I'm going to try and snooze another twenty minutes...
Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness; Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.

User avatar
triceratop
Moderator
Posts: 5081
Joined: Tue Aug 04, 2015 8:20 pm
Location: la la land

Re: U.S. stocks in freefall

Post by triceratop » Fri Feb 02, 2018 4:17 pm

nisiprius wrote:
Fri Feb 02, 2018 4:16 pm
(Awaking from afternoon nap)... wuzza... huh... why freefall thread up again, better check, where are my glasses, darn it, can't find 'em... did something happen?

Image

...nah, nuthin'... honey, any decaf left? yeah? bring me some wouldja, I think I'm going to try and snooze another twenty minutes...
You just woke up from January 28?
"To play the stock market is to play musical chairs under the chord progression of a bid-ask spread."

User avatar
willthrill81
Posts: 4161
Joined: Thu Jan 26, 2017 3:17 pm
Location: USA

Re: U.S. stocks in freefall

Post by willthrill81 » Fri Feb 02, 2018 4:17 pm

AnalogKid22 wrote:
Fri Feb 02, 2018 4:14 pm
The BH philosophy is to not market time, yet the majority of posts are about just that. There will be a lot of unhappy people when things take an ugly turn.

"I know I shouldn't market time, but..."
I'll bet that all but the most die-hard BHs would agree, though, that if the market going down causes you to invest even more, that's a form of market timing they would be completely fine with.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings

tbradnc
Posts: 1511
Joined: Wed Apr 02, 2008 8:30 am

Re: U.S. stocks in freefall

Post by tbradnc » Fri Feb 02, 2018 4:18 pm

bligh wrote:
Fri Feb 02, 2018 3:53 pm
These delighted posts will look so sad if this is the start of a deep, multi year bear market. :shock:
I've been shaking my head thinking the same thing as I've read through these posts.

Bacchus01
Posts: 1643
Joined: Mon Dec 24, 2012 9:35 pm

Re: U.S. stocks in freefall

Post by Bacchus01 » Fri Feb 02, 2018 4:22 pm

bligh wrote:
Fri Feb 02, 2018 3:53 pm
These delighted posts will look so sad if this is the start of a deep, multi year bear market. :shock:
Not for me they won't. Nope.

User avatar
oldcomputerguy
Posts: 2917
Joined: Sun Nov 22, 2015 6:50 am
Location: In the middle of five acres of woods

Re: U.S. stocks in freefall

Post by oldcomputerguy » Fri Feb 02, 2018 4:22 pm

DanMahowny wrote:
Fri Feb 02, 2018 4:08 pm
bligh wrote:
Fri Feb 02, 2018 3:53 pm
These delighted posts will look so sad if this is the start of a deep, multi year bear market. :shock:
Indeed. I hope this week is the beginning of a multi-year 50% decline in equities.
As long as it comes back up...
It’s taken me a lot of years, but I’ve come around to this: If you’re dumb, surround yourself with smart people. And if you’re smart, surround yourself with smart people who disagree with you.

User avatar
AnalogKid22
Posts: 116
Joined: Wed May 18, 2016 8:26 pm
Location: Babylon, but I'd love to spend a night in Zion

Re: U.S. stocks in freefall

Post by AnalogKid22 » Fri Feb 02, 2018 4:22 pm

willthrill81 wrote:
Fri Feb 02, 2018 4:17 pm
AnalogKid22 wrote:
Fri Feb 02, 2018 4:14 pm
The BH philosophy is to not market time, yet the majority of posts are about just that. There will be a lot of unhappy people when things take an ugly turn.

"I know I shouldn't market time, but..."
I'll bet that all but the most die-hard BHs would agree, though, that if the market going down causes you to invest even more, that's a form of market timing they would be completely fine with.
What's the appropriate amount to invest at each drop?

oliverwendellholmes
Posts: 17
Joined: Fri Jan 26, 2018 4:00 pm

Re: U.S. stocks in freefall

Post by oliverwendellholmes » Fri Feb 02, 2018 4:24 pm

If this does become a bear market, great news for young investors to get in on the action! The ideal is to start investing in the bear market and retire in a bull market right?

User avatar
TSquare
Posts: 47
Joined: Thu Jan 21, 2016 11:08 am

Re: U.S. stocks in freefall

Post by TSquare » Fri Feb 02, 2018 4:24 pm

I want to make a comment but I'm very superstitious and don't want to jinx us all!
Last edited by TSquare on Fri Feb 02, 2018 4:57 pm, edited 2 times in total.

User avatar
willthrill81
Posts: 4161
Joined: Thu Jan 26, 2017 3:17 pm
Location: USA

Re: U.S. stocks in freefall

Post by willthrill81 » Fri Feb 02, 2018 4:25 pm

AnalogKid22 wrote:
Fri Feb 02, 2018 4:22 pm
willthrill81 wrote:
Fri Feb 02, 2018 4:17 pm
AnalogKid22 wrote:
Fri Feb 02, 2018 4:14 pm
The BH philosophy is to not market time, yet the majority of posts are about just that. There will be a lot of unhappy people when things take an ugly turn.

"I know I shouldn't market time, but..."
I'll bet that all but the most die-hard BHs would agree, though, that if the market going down causes you to invest even more, that's a form of market timing they would be completely fine with.
What's the appropriate amount to invest at each drop?
If you're investing even more, does it really matter?
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings

RRAAYY3
Posts: 926
Joined: Thu Jan 17, 2013 12:32 pm

Re: U.S. stocks in freefall

Post by RRAAYY3 » Fri Feb 02, 2018 4:25 pm

Lump sum, dollar cost averaging, market timing ... it’s funny how people skew these terms to fit their narrative

I made a “lump sum” last March ... then my next investments were “smaller lump sums” - wait I mean “dollar cost averaging” - wait it was “market timing” since I chose to buy on days the market went down

Just invest - call it whatever you want. We’re all doing some form of the 3, whether you want to believe it or not

livesoft
Posts: 60941
Joined: Thu Mar 01, 2007 8:00 pm

Re: U.S. stocks in freefall

Post by livesoft » Fri Feb 02, 2018 4:31 pm

oliverwendellholmes wrote:
Fri Feb 02, 2018 4:24 pm
If this does become a bear market, great news for young investors to get in on the action! The ideal is to start investing in the bear market and retire in a bull market right?
Actually, it is best to retire in a bear market. See, for instance, https://earlyretirementnow.com/2018/01/24/random-walk/
Wiki This signature message sponsored by sscritic: Learn to fish.

CULater
Posts: 1039
Joined: Sun Nov 13, 2016 10:59 am

Re: U.S. stocks in freefall

Post by CULater » Fri Feb 02, 2018 4:31 pm

This is either the beginning of a huge market drop, or not! I think I'll either sell everything, or buy! Good thing I have the weekend to think it over before Black Monday (or Black Tuesday) :mrgreen:
In finance, Black Monday refers to Monday, October 19, 1987, when stock markets around the world crashed, shedding a huge value in a very short time. The crash began in Hong Kong and spread west to Europe, hitting the United States after other markets had already declined by a significant margin. The Dow Jones Industrial Average (DJIA) fell exactly 508 points to 1,738.74 (22.61%).[1] In Australia and New Zealand, the 1987 crash is also referred to as "Black Tuesday" because of the time zone difference.
https://en.wikipedia.org/wiki/Black_Monday_(1987)
May you have the hindsight to know where you've been, The foresight to know where you're going, And the insight to know when you've gone too far. ~ Irish Blessing

User avatar
eye.surgeon
Posts: 324
Joined: Wed Apr 05, 2017 1:19 pm
Location: California

Re: U.S. stocks in freefall

Post by eye.surgeon » Fri Feb 02, 2018 4:39 pm

AnalogKid22 wrote:
Fri Feb 02, 2018 4:14 pm
The BH philosophy is to not market time, yet the majority of posts are about just that. There will be a lot of unhappy people when things take an ugly turn.

"I know I shouldn't market time, but..."
Rebalancing on the day of a big drop for many involves buying equities. Rebalancing encourages buying low and selling high, nothing market timing about that.

Now if you increased your equities allocation today just to buy the dip, that's market timing.
Last edited by eye.surgeon on Fri Feb 02, 2018 5:06 pm, edited 2 times in total.
"I would rather be certain of a good return than hopeful of a great one" | Warren Buffett

WhiteMaxima
Posts: 1081
Joined: Thu May 19, 2016 5:04 pm

Re: U.S. stocks in freefall

Post by WhiteMaxima » Fri Feb 02, 2018 4:40 pm

BH never time the market. I also want to add: most importantly, BH also is a value investor.

laputan86
Posts: 6
Joined: Mon Jan 15, 2018 12:18 am

Re: U.S. stocks in freefall

Post by laputan86 » Fri Feb 02, 2018 4:40 pm

Just a weak hand shakeout before a year of parabolic gains.

Jags4186
Posts: 2110
Joined: Wed Jun 18, 2014 7:12 pm

Re: U.S. stocks in freefall

Post by Jags4186 » Fri Feb 02, 2018 4:41 pm

tbradnc wrote:
Fri Feb 02, 2018 4:18 pm
bligh wrote:
Fri Feb 02, 2018 3:53 pm
These delighted posts will look so sad if this is the start of a deep, multi year bear market. :shock:
I've been shaking my head thinking the same thing as I've read through these posts.
Seriously. We've had a 9 year bull market where the S&P500 has returned 15.29% CAGR. I for one would not have minded a 21 year bull market like the one from 1979-1999 where the S&P 500 return 18.02% CAGR. 21 years of 18% annual returns...incredible. Of course you could get the crash everyone seems to be cheering for and have the 18 year period ending 12/31/17 where the S&P 500 only return 5.37% CAGR...

limeyx
Posts: 170
Joined: Wed Sep 07, 2016 5:34 pm

Re: U.S. stocks in freefall

Post by limeyx » Fri Feb 02, 2018 4:52 pm

ImmigrantSaver wrote:
Fri Feb 02, 2018 10:55 am
lostdog wrote:
Fri Feb 02, 2018 10:38 am
RBD today?
Good question. I have 2k to put in between now and the end of February (50/50 VXUS and VBR as I am underweight in both). Do I do it now or do I wait.. Decisions decisions..
I have some to put in too. Probably moanday

4ransom
Posts: 71
Joined: Mon Jul 30, 2007 3:27 pm

Re: U.S. stocks in freefall

Post by 4ransom » Fri Feb 02, 2018 4:57 pm

Not time to dig out the PLAN B yet.

Post Reply