Economy, something look funny here

[PrincekieParticipant 1042]

MarketWatcher wrote:

Carnage wrote:

the last time this the graphics started looking like this… 2008…

Yes, the fundamentals have been thrown out the window and it is mostly speculation and algorithms propping up the US equity markets right now.

Princekie wrote:

October 16th 2017.
Write it in your diary. Thank me later.

Good history lesson. I think you mean the 19th if you are referring to 1987. I am more worried about Friday the 20th. Options expire that day.

We will pull back, the question is when?

You’re right. But I meant 16th. Usually if there’s panic in the market and a slide has taken place on Friday before, Monday is usually the day when investors dump shares and scramble for the parachutes. Could be the Monday after though.
Side note: every crash in history has occurred in October. Look at 1929, 1987, 2008…

[MarketWatcherParticipant]

Carnage wrote:

Thanks market watcher now I know what he means.
SHTF im prying it will happen.

Me too. A huge market pullback would be my last opportunity to buy great stocks really cheap before I retire. Just don’t get to anxious and wait for the bottom. High volume and capitulation will be your indicator it is time to by. “When everyone else is greedy be fearful, when everyone else is fearful be greedy.”

[BeerParticipant 11832]

JVB wrote:

Stay liquid. Yes,yes I know all about inflation but tell that to those that lost 40% of their portfolio in the 08 crash.

Just the people that panicked and pulled out, or had to sell to stay afloat lost. If you rode it out you came out just fine on the other end. I think the more important lesson is to always keep some cash on hand so you can survive for at least 6 months, and don’t carry a heavy debt load so you don’t ever have to sell shares to pay next months bills in the inevitable event we do have another downturn eventually. This is what screwed a lot of people last downturn…they were living paycheck to paycheck with lots of debt to begin with and in the event they lost their job they immediately started hitting retirement savings so they didn’t lose their houses and cars…but hitting the retirement savings in the middle of a downturn meant they were screwing themselves hard by selling things at rock bottom.

This is also why I love to go long on dividend payers. If the shares take a dip it just means its a great time to buy more at a higher yield. I’d drive myself nuts if I followed short term price fluctuations effect on my account too closely, so I generally am more interested in tracking my dividend income. Between buying more shares from money saved out of my paychecks, reinvesting dividends, and companies raising dividends, I’ve yet to have a quarter where I earned less dividend income than the previous quarter.

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