Financial Samurai - Forums

General Investing => Stocks And Index Funds => Topic started by: Sam on October 10, 2018, 06:23:29 PM

Title: What a stock market meltdown on Oct 10, 2018!
Post by: Sam on October 10, 2018, 06:23:29 PM
I haven't seen one of these in a long while as panic accelerated into the clothes. Who thinks this is going to get uglier before it gets better?

I've been accumulating some bonds, some beaten up tech stocks like NFLX, AMZN, IVV, and IRF but I'm catching a falling knife.

Long term outlook for the win!

I got to say, investing in private investments in real estate crowdfunding makes me happy because I don't know what the daily value of these assets are.
Title: Re: What a stock market meltdown on Oct 10, 2018!
Post by: Orphan on October 11, 2018, 04:25:31 AM
Looks like a a lot of good companies are on sale...
Title: Re: What a stock market meltdown on Oct 10, 2018!
Post by: IzzyEsq on October 11, 2018, 06:56:50 AM
I'm with Orphan.  The fact the market's freaking over rising interest rates isn't the end times, and there are going to be good deals out there.  Stick to dollar cost averaging.
Title: Re: What a stock market meltdown on Oct 10, 2018!
Post by: Sam on October 11, 2018, 07:49:40 AM
Check out this post I published with a chart on how stocks have performed in a rising interest rate environment. Generally quite positive.

https://www.financialsamurai.com/suggested-stock-allocation-by-bond-yield-for-logical-investors/
Title: Re: What a stock market meltdown on Oct 10, 2018!
Post by: Bonsai on October 11, 2018, 12:42:23 PM
I concur with IzzyEsq and Orphan.  This meltdown is higher volatility (VIX at 23, normal is 12-13) and variant (expect a 5% drop at any time with reason/explanation).  The market (DOW) is down about 7% from its high (about a week ago), not yet even a correction (need 10%), and I would not mind a correction (as a buying opportunity).  I have cash on the sidelines waiting for the right time to buy.  I think there is still some room for the market to fall, and will fall until the Nervous Nellies cash out at a loss.
Title: Re: What a stock market meltdown on Oct 10, 2018!
Post by: TravelGirl on October 12, 2018, 05:03:00 AM
I expected a downturn before midterm elections, it is pretty typical https://www.marketwatch.com/story/heres-how-stocks-perform-around-midterms-in-one-chart-2018-09-11

It is also pretty typical to gain a lot of profit after the midterm elections if you buy now and hold on for the ride https://www.cnbc.com/2014/11/04/why-investors-love-midterm-election-years.html

I happened to be in college - an Economics & Finance major when the Oct. 1987 crash happened.  We were playing a fantasy stock game to see who could make the most money by the end of the quarter.  Those that put in shorts, of course, won!  But it was a real good lesson.
Title: Re: What a stock market meltdown on Oct 10, 2018!
Post by: Bonsai on October 23, 2018, 08:27:39 AM
As I write this post, from the highs, the S&P is down about 7.8%, the Dow - 6.7%, and the Nasdaq - 9.8%.  I feel it is time to make some purchases (probably later today) from my list of candidates.  Is anyone else ready to buy ?
Title: Re: What a stock market meltdown on Oct 10, 2018!
Post by: Sam on October 23, 2018, 12:40:01 PM
I've continued to buy Bonsai.
Title: Re: What a stock market meltdown on Oct 10, 2018!
Post by: hyperobjeckt on October 24, 2018, 09:16:12 AM
S&P still dropping... times like this I wish I kept some more dry powder  :P
Title: Re: What a stock market meltdown on Oct 10, 2018!
Post by: Bonsai on October 24, 2018, 12:31:20 PM
I bought today.  The 500 point drop faded by the time I could get back to my portfolios.  I added to Saleforce.com (CRM), Microsoft (MSFT) and dividend favorite United Pacific Santa Fe (UNP).  All my dry power is gone for now.  I will know in a year how well/bad this buying "opportunity" turned out.  Good luck to Sam and all.
Title: Re: What a stock market meltdown on Oct 10, 2018!
Post by: Kendall on October 25, 2018, 12:33:51 PM
Bought some MSFT also. I have my eye on BAC, hoping for a pullback below 25. My TSLA purchase is starting to make money finally.
Title: Re: What a stock market meltdown on Oct 10, 2018!
Post by: Sam on October 26, 2018, 07:55:25 AM
Kendall - Thank goodness for Tesla. Everything else seems to be getting slaughtered.

What's also concerning about the quickness of the stock market meltdown is how quickly housing can meltdown as well. Just spoke to a good friend of mine who is a SF real estate agent. He says even the bread and butter $1.5M segment where many can buy has grinded to a halt.

Same thing for a Honolulu RE agent I'm working with. BUYER'S MARKET within the past one month for sure.
Title: Re: What a stock market meltdown on Oct 10, 2018!
Post by: Kendall on October 26, 2018, 08:54:57 AM
Bought some AMZN on the dip today and BAC. I considered buying some SPY but backed out. Trying to discipline myself to keep dry powder.

Yes Sam, the TSLA good news is highly welcomed! It seems that the movement of housing and stocks are correlated, probably happens at market tops. Maybe it is my imagination, I do not have hard data to back that up.
Title: Re: What a stock market meltdown on Oct 10, 2018!
Post by: Orphan on October 27, 2018, 09:01:16 AM
Quote from: Sam on October 26, 2018, 07:55:25 AM
Kendall - Thank goodness for Tesla. Everything else seems to be getting slaughtered.

What's also concerning about the quickness of the stock market meltdown is how quickly housing can meltdown as well. Just spoke to a good friend of mine who is a SF real estate agent. He says even the bread and butter $1.5M segment where many can buy has grinded to a halt.

Same thing for a Honolulu RE agent I'm working with. BUYER'S MARKET within the past one month for sure.

Sam,
Grinded to halt as in no inventory or in lack of available buyers ? Thanks

O
Title: Re: What a stock market meltdown on Oct 10, 2018!
Post by: Sam on October 28, 2018, 06:44:30 AM
Kendall - Rising inventory and now hesitant buyers, as Thy should be.

Lack of inventory is a myth.
Title: Re: What a stock market meltdown on Oct 10, 2018!
Post by: svytraveler on October 28, 2018, 09:11:45 AM
Quote from: Sam on October 26, 2018, 07:55:25 AM
Same thing for a Honolulu RE agent I'm working with. BUYER'S MARKET within the past one month for sure.
@Sam I have an interview this week for a job in the Pearl Harbor area.  My eventual plan is buy property on the big island, but if I get this job, I would live on Oahu for at least three years.  Do you have a recommendation for a buyer broker for residential real estate (below $1M in price) in the Pearl Harbor area-ish and/or the big island?  Thanks!
Title: Re: What a stock market meltdown on Oct 10, 2018!
Post by: Sydney on October 29, 2018, 06:19:33 PM
I used the drop to put some cash to work today, which felt good. Hard to know what to expect for the rest of the year though, let alone tomorrow. Crazy volatility. I just keep telling myself to keep my focus on the long game and to do my best to continue using drops to leg into my existing positions.
Title: Re: What a stock market meltdown on Oct 10, 2018!
Post by: Kendall on November 01, 2018, 05:53:31 AM
I heard a funny financial term today called an "orange swan". When president Trump says something crazy and the markets react.   :D