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

Last recession the best thing to do was to go about your day to day life and don't be obsessed with the balance of your investments. They will go back up, especially if you are younger now. Those folks who are retired and rely on their current retirement savings are understandable more concerned.

Beside, a true resession is 2 consecutive negative quarters which we won't know for several months. In the meantime, live life.

 

I was just graduating high school then, as long as your not working in an industry that's highly affected you should be good. Moving on to a better, higher paying job would be tough.
Stay employed
Have an emergency fund, thats invested in something very low risk in case you do lose your job.
Remember itll eventually pass and make the best of it.

 

Don’t be scared to rotate stocks either. If you hold something that’s down 20%, sell it, and immediately buy something that’s also down 20%, in theory you lost nothing. It’s a good way to write off tax losses too. The only thing I’d avoid is selling, staying out of the market, then buying back when it’s back up, but that should be obvious.

 

What really concerns me is the scope of closings, cancelations and travel bans.

Goldman just revised their estimate for 2nd qtr GDP from 0% to -5%

https://finance.yahoo.com/news/goldman-downgrades-u-growth-forecast-201456274.html

Layoffs are coming and no amount of intervention is going to stop this

 

JNJ down only 10% from it's 52 week high. Costco, Walmart, etc. are gonna crush it from the panic. Set up a broadly diversified portfolio with bonds, consumer staples, pharma's, utilities, etc. and let it ride. Buffet is gonna come out of this buying up shit with the billions of cash he's been sitting on and own the country.

 

If the replacement stock you buy is similar (not sure of the criteria to determine that) the loss will be disallowed as a "wash sale". Had a couple of those show up on my statements this year.

 

wait what, I never thought about this. Genius thanks,

 

I am down 18% right now from my high. I built my portfolio for times like these, but it does ok in up markets too.

 

Yea I have no idea how that works, but there is a rule like that. Either way, if it’s a wash sale, no tax benefit but you still got to make the rotation.

Edit: It looks like the rule is “substantially identical” securities. I don’t think swapping TGT for WMT would be a wash sale: https://www.investopedia.com/terms/s/substantiallyidenticalsecurity.asp

 

So I'm in Alabama, we just had our first confirmed case in Montgomery what Friday?

Any who, I'm around Birmingham area and they're basically sending the whole company home for those that can work at home and those that can't have been informed to keep communication to a minimum with other employees.

I feel the only reason our company did this is to avoid backlash from media exposure as the only company carrying on like normal.

 

I know. It was more a rhetorical question than an actual lack of understanding.

impatience is expensive

 

I had an overweight position in midstream energy that hurt. Once investors realize it's a fee based business, largely hedged and not tied to commodity prices mid term, I'm betting it will rebound nicely. The insiders are buying so I'm letting it ride.

 

Going to be a shit show tomorrow. I'm optimistic lessons will be learned out of this, but all signs point to no.

 

Warren Buffett has a $128 billion cash pile. Wall Street can't figure out why he isn't spending it. Berkshire Hathaway revealed when it reported third-quarter earnings Saturday that its cash pile had grown to a record $128.2 billion, even though it repurchased $700 million of its own shares.

Nov 5, 2019

 

Huh maybe buffets sitting on it because the artificially inflated bull market is unwinding?!?!?

 

So how low is thing going off the high? 30%, 40%, 50%+? I set up a few limit orders for VTI but now I'm thinking I set the limits too high.

 

After the fed rate cut today and whatever madness goes down this week they are anticipating, I'm thinking 50%+ from the start of this whole mess. It was almost at Dow 30k!!

Dont anyone make any moves based off my speculation I'm just an idiot on the internet!! I'm still holding my positions, if they go to zero my portfolios the last thing I need to worry about!!

Interesting times to see this credit mess imploding and the mistakes post 2008 masked as a pandemic scare. Not down playing the pandemic, just referring to the bloodbath in the market here.