I think even the word destroy is wrong here and is giving too much credit. His goal is to return wealth to the people–that isn’t destruction, its just reallocation (and justice). The stock market is just a measure of wealth held by rich people–of course it will go down when some of that wealth is returned to where it belongs.
Exactly what I have been saying/mean!
Yeah extra spending money to the working class due to not being in medical debt, or higher wages, etc. - goes straight back into the US economy. Steve Wynn is as likely to spend his tax windfall on a new hotel in Macau as in the US. Also I’m not convinced rich people driving up the price of California and NYC real estate, fine art, and stocks is as stimulative to the economy as a hundred million consumers with more spending money.
Feel like our comrades on this board are a little too well off, yes, Bernie essentially wants to raid your 401k!
You may not be Steve Wynn but maybe you’ve six figures in the market via your 401k. 68% of the population doesn’t have a 401k at all! When Bernie says he is going to have us help those people out not only are we going to pay higher taxes (and Wynn MUCH higher) but Bernie is essentially going to take some money out of our 401k via beating up the Corps in our portfolio (and a ton out of whatever tax advantages vehicles Wynn is using). That’s a good thing!
https://www.fool.com/amp/retirement/2017/06/19/does-the-average-american-have-a-401k.aspx
Its completely normal for the market to go + 1000 -900 + 1200 -750 (so far) in the span of 4 days. Nobody panic.
I moved about 55% of my Roth IRA to cash by selling all of my AAPL at open this morning. I was way overweight on it anyway, got in big (for me at the time) at 142. Almost got some out at peak, was going to sell half at 330 and move it to QQQ to diversify, but it didn’t quite get there.
I normally just buy and hold, but it just seems so clear coronavirus is going to have huge economic impacts and the market seems to be sticking its head in the sand. Seems like within a week or so we’re going to start really getting hit in the US in a bigger way.
Transitioning to a European level of GDP per capita would statistically be a permanent Great Depression.
40/60 stock bonds now. Expect to go 100% stock in the coming days/weeks. Not worried about the Coronavirus long-term, it’s a 1 or 2 quarter hit to earnings, no biggie in the grand scheme.
It’s actually pretty easy to lose money in high end real estate (assuming this means something like properties $10 million plus) because the volume is lower and the market less efficient. If you’re buying in the under $2 million range it’s easier to benchmark against comparable properties and not get ripped off.
Just a hunch and I’m wrong more than right, but absent some unexpected good news tomorrow feels like it has a chance to be a real bloodbath. Like negative 1500 (Dow) or maybe more with any kind of bad news piling on to what we already know.
In any case, I’m hanging where I’m at and moving to 60:40 when/if the Dow hits 24000.
I think that’s a good bet. Also I think it’s a near lock we don’t get any good news tomorrow. I mean it’s almost not even possible. We’re not getting a vaccine, we’re not doing shit to contain (in the US), spring might help but it won’t be spring tomorrow. We already fired off a 1/2 pt interest rate cut and it had no effect. It’s inevitable things get worse before they get better. The only thing is not everyone believes that yet. If they did, we’d be a lot lower than 11% off ATH. It gets harder and harder to deny reality every day though. Tomorrow might be the day everyone catches up but if not it will be soon.
The 10 year Treasury yield is now at .84%. That’s an all-time low and highly suggestive of a coming recession.
My foreign assignment will end at end of the year and I will move back to the US but to a different city under a domestic relocation policy. There’s a chance this whole thing plays out perfectly for me. The drastically falling rates mean real estate values will hold up for a while and I will be able to sell my paid off Pittsburgh house for a good amount in mid summer, and super low rates mean I will be able to afford a mortgage on a much nicer place than I planned when I buy in the North Jersey area at end of the year.
My 401k is like 40% stocks 30% bonds and 30% cash. I probably got out of stocks too early. I started risking off when Trump got elected, but if S&P 500 keeps going down to around 2500 or 2600 I will be able to get back at a point where I am better off than if I had just held.
Anyway I also have a lot of cash on hand, was plannig to buy a couple cars and furniture and stuff when we moved back to USA but I could just invest that and finance everything if we’re going to have super low interest rates and a cheap stock market.
Already down 3% premarket
Positive jobs report had almost no effect on the futures market. (Of course it’s backwards looking and nobody thinks it will look so good next month.)
I deal with it every day in my job so I’m probably over hyping it, but the 10 year treasury yielding 73 basis points is absolute insanity.
Today has the potential to be a bloodbath. If not today, Monday. Sooner or later Wall Street is going to realize Daddy is lying about coronavirus.
I’m pretty sure wall street already knows that. The only people that don’t are Fox News mainlining Trumpkins.
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I made my call before futures turned strongly negative last night. You never know though as sometimes the craziest things happen in the market on any given day.
Approaching 70 basis points now!
Edit: Now hit 69, nice!