by Jack
Circuit breakers trigger again on massive sell off that confirms a bear market. Shopping for bargains in this environment it akin to catching the proverbial falling knife!
This isn’t my first crisis. I’ve been playing to stock market since I was 13 years old. I’ve made big money and lost big money- all part of the learning curve. Later on in life I finally made it back so I had a decent retirement, only to lose it again in widespread fraud and poor oversight ( in utility stocks, a so-called safe haven for seasoned investors.)
Back then, PG&E went bankrupt as did a number of other energy companies (ENRON) because they got caught cooking the books or they were the victims of serious government meddling, PG&E was the latter. Lesson to be learned here was government rarely helps, but it sure can make things worse!
Fast forward to today, “U.S. stocks tumbled by more than 7% again Thursday, with Wall Street poised to extend its historically ugly sell-off, after President Donald Trump announced new plans intended to contain the human toll and economic impact of the worsening coronavirus outbreak that has whipsawed global markets.”
Okay, but the stock market was bloated long before corona virus went on sale in the wet market. Price to equity ratios (P/E – a good value indicator) were way out of whack, thanks to speculators jumping on the ol gravy train and pushing stocks into unchartered territory. Of course… sooner or later all good things must end, you just can’t reasonably expect to violate the laws of basic investing and not have a day of reckoning.
If it wasn’t Hunan flu it would be something else and that’s what we are seeing right now. The market is taking huge hits because it was overbought and now it’s approaching oversold.
The damage to cruise lines, airlines, hotels and the whole travel industry in general is obvious, but then there is the ripple effect and that’s not so clear. We just know that it’s going to be bad, the economy is about to take a big hit and that is why the market is in free fall. How bad it gets depends on how many lemmings run over the cliff. If you know the answer to that one, please tell us here so we will know when to buy bargain stocks. Till then, hang on to your wallet and get prepared for a wild ride.
The country is drowning in debt. The corona virus and the collapse in oil prices due to Saudi and Russia are just the pins that pop the bubble. The bubble is all the debt caused by insanely low interest rates since 08 thanks to the corrupt Federal Reserve. This is the biggest debt bubble in history and will end very badly.
And the only thing the criminals at the Federal Reserve have to offer is more of the same including massive liquidity injections. And the corrupt politicians will start handing out money for bailouts. These incompetents and criminals will ruin what’s left of this country.
I never played the market. Someone advised me to never play anyone else’s game, so I went with real estate. It was always safe and profitable, and then Barney Frank started messing with it. That’s when I retired.
Now our governor is getting involved in the real estate market.
I recommend the lottery for millennials.
LOL the lottery is about equal odds for everyone these days. Although, my son says he’s buying now, but he has decades to go before he retires.
My gut reaction is this whole over reaction is a bunch of political BS. A tanked economy is the only way Trump’s reelection could be jeopardized and poof the Chinese let loose with a flu bug. They don’t want Trump to have a second term any more than the Dems and Russia, maybe even more so. Would they siken and even kill thousands to millions? You bet they would. They’ve done it before, more than once.
Trump was brilliant in shutting down travel between us and China. Look at what the traveling did to Italy and the rest of Europe.
Italy joins China’s New Silk Road project:
https://www.bbc.com/news/world-europe-47679760
Ps. I’m feeling good as new again. Based on my symptoms and those experienced by others it’s a good chance I did have the Wuhan/Chinese flu.
Happy to learn you are well.
Good explanation–
http://symbolic-mirage.blogspot.com/2020/03/explaining-liquidity-and-chinese-plague.html
Thanks RHT447.