Investment BS Thread - Stocks/Futures/Mutual Funds/Bonds/Commodities/Options/ETFs/401ks/Etc

Unique event... last time was 2008. i cant wait for next crash.

 

Was this one on the 2008 level of crashes? I wasn’t in the market at that time.

 

I think it was terrible (and still might be) to lose 40% + and if not for the pump money, could be a decade or more (if at all) to get it back. Fingers crossed that dollar doesn't crash and USA has a reset with currency and people will call it the new normal. Of course people that have nothing won't care one way or the other.

 

Still bargain opportunities in reits. I loaded up on nrz,mfa

yes only difference being there was a little more uncertainty in 2008. Stock market acted practically identical to this covid market. 2008 was a little slower to recover. Both unbelievable buying opportunities. Market ALWAYS bounces back

 

Your last sentence is why I can sit back and wait I guess. If it doesn’t bounce back, buy ammo and all that. But I guess I have that same belief and hope it does always come back.

 

Again, depends the timeline. They were too different. 2008 was part of a prolonged downturn. I believe starting in fall of 07 the DJI decreased until bottoming out in early 2009. And it took 4 years for the market to get back to those 2007 levels. This was quick, and DJI is closing in on pre pandemic levels after 6 months? Just very different scenarios

 

You sure it was 4 years to recover? They both dropped what felt like over night. Damn I thought it was way faster then four years to recover. I also made a shit ton in real estate. Everything was so cheap. I wish i could get those 2008 prices again

 

Well 4 years to recover it’s high. That’s what I mean. Started down late in 07, bottomed early 09 I think, and I think late 12 or early 13 got back to the late 2007 level. There were quick drops for sure, but it was part of a much longer drag

 

I think it was. That just means 4 years of buying until the high. That would have been ideal for me now, being in my 30’s. I’d love to buy for 4 years at depressed prices!

 

Long term, these are depressed prices

if not we are all screwed anyway

 

Good way to look at it. The market hasn’t done much since early 2018, over 2.5 years, so now may be a decent time to buy.

 

I dunno Peter Schiff says the inflated bubble is wayyyy over priced and due for a MASSIVE correction. ::endoftheworld::

 

on the level of crash yes but different. This one was spurred by a natural disaster or outside event. Not the market itself imploding. So the recovery is way different than a regular economic downturn because it’s really nobody’s fault that we had to come to a grinding halt, there’s no big banks, no real estate bubble, etc etc etc. this just. Happened.

 

Yea this definitely was up there with those other crashes but there's no way this is over yet. Then again we never really got out of the 2008 bs if you ask me. I'm not sure people realize how much stuff was never corrected but more so just pushed on further down the road. Even with this one the longer term effects haven't really started to show just yet and it took a lot of money printing to help the market jump back up again.

 

I think were still not even at the half way point of this mess but itll be looked at as major changes to alot of different things, more companies will switch to work from home, more home schooling, alot of small business will go under and be bought out by big corporations, moving supply chains out of china.

 

what about the giant rush to go to college next year with all the people skipping out this year? What about the giant gap in talent in 4 years when the graduating class is just Steve. Yeah there’s going to be some weird stuff that we don’t know is a thing yet. I’m kind of intrigued and horrified. Oh well.

I think we recovered from 2008. I think we actually learned a lot, if we didn’t have 2008 and this happened we’d have a loooooot or skeletons coming up. I do think there are a lot of people who overextended for a house in the past few years though that are learning their preapproval amount is probably more than they should have in their budget.

 

The Fed and the Banks learned a lot from the housing market crash. That's why the Fed stressed tested the banks as soon as this crash started. They all passed even thought they had limit expenditures. This is nothing like the 2008 market crash in the regard the economy and almost all financial institutions where in great shape.

This crash is also not over. Sure, the market is killing it but main street is gonna hurt worse before it gets better. How all the myriad of different aspects of that will play out is anyone's guess. So much is unprecedented here it's hard to truly gauge where we are.

 

Very good responses. I agree, the fallout from this is unknown, and will probably be like 2008 and we’ll put measures in place to prevent this from happening again. That’s obviously good, but reactive, in that the next crisis will be different and not preventable. Who knows what it will be? It is of course good to fix what we know is broken.

 

The money printing machines for bailouts are never broken

 

Home loans are something that is still very messed up in my opinion. I bought my first house in 2000, my second in 2002, and just bought my third (hopefully last).
All three times I was dumbfounded at the amount they were willing to lend me. To the point where I seriously questioned their ability to do math.
I could have borrowed almost double what I was comfortable borrowing. They must do pretty well with foreclosures or something.