dow -300 to +100 in 20 min?!
WTFswings?!
I didn't see this today, did this really happen.
I didn't see this today, did this really happen.
I thought about going bonds but the Fed thing is worrying -- Fed hike rate, bond prices go down for yields to go up?
Regardless, I'm almost all cash. My single Canadian preferreds ETF is taking a massive dump -- no surprise given how the economy is in recession (i.e. companies no make da moneys to make da payouts).
This is my 401k I can't move it to cash and the safest place would be in bonds. I lost 30k from the very high I had but it would be closer to 50k if I did not move to bonds since. I do believe we are headed on a downward trend.
My other stock money is sitting as cash. The feds really f'd themselves by getting to 0 there is no way to stimulate this market at 0. The sooner they raise the rates the better all they are doing delaying and cause more fear on investors.
But for the uninformed there are quarterlies too on things like the QQQs, the one I watch.
This is my 401k I can't move it to cash and the safest place would be in bonds. I lost 30k from the very high I had but it would be closer to 50k if I did not move to bonds since. I do believe we are headed on a downward trend.
My other stock money is sitting as cash. The feds really f'd themselves by getting to 0 there is no way to stimulate this market at 0. The sooner they raise the rates the better all they are doing delaying and cause more fear on investors.
My advice - buy low, sell high
Something like 401K, the best thing to do is just ride it and not try to move things around a bunch. Trying to time the markets on instincts is not a winning strategy.
So saving 20k so far by moving to bonds is a bad thing? I'll keep doing what I been doing.
The problem is you will likely over-react. Hold it for longer (and miss gains when the market spikes back), or simply sell AFTER the big drop has already occurred. Or simply do it when there isn't even a real market drop, but rather a 1-day hiccup.
Someone didn't understand a single word I said. That's OK. Someone has to fill the stupid bucket.So you are saying this is a one day hiccup? ok
As far as 401K strategy is concerned, there is one very useful and very simple one that I try to follow. The S&P500 20W/50W cross. It is incredibly simple. You get in stocks when the 20W moving average crosses above the 50W moving average, on the weekly chart. You get into cash when the reverse occurs, as shown below:
This is a long term timing indicator, and you can lose some money via whipsaws, such as in 2010 and 2011 (and yes, potentially in 2015 as well). But you will always capture the meat of the move in the market (ie the 2009's and the 2013's). Go back through 50 years of charts and see, it works very well. It produces much better returns than buy-and-hold over the long term. Allow for 1% slop.
This is the type of thinking that I agree on. People act like OMG you missed when the market goes back up, so what, I negated a big drop that would have killed my 401k.
Perhaps. But perhaps not. The type of drop that you "negated" isnt really the type of drop that kills a 401k. It's more like a minor flesh wound. 2008 is the type of drop that kills a 401k. (BTW the 20W was under the 50W for the entirety of 2008, as well as 2001 AND 2002) But right now the 20W/50W is still in that ambiguous zone where it could easily whipsaw. I believe the proper move is to stay long, until that 20W moving average makes a clear progression below the 50W. At this point it would take a massive rally of epic proportions to whipsaw the 20W back above the 50W. But it certainly is possible. And I dont say that because my own indicator is extremely bullish right now!
Follow this one weird trick to protect your 401k.
Traders hate him!
premarket:
smuckers (sjm) dropped 99%?!
WTF?!
premarket:
smuckers (sjm) dropped 99%?!
WTF?!
Outside of monitoring the market every single day, do you have a way to notify you when such occurs?