Down goes the Dow

Market is down 1%, life is good....

K5 detector wrote:

Hi, K5/Igy! It's funny that you constantly change your username, then complain about someone else's name. Good joke!

I come up with my own names and don't steal others. You know, like you do. Again back to the total lack of originality.

And can you explain how an investor is hurt before they sell their investments? Thanks!

If the value of your holding drops from $1 million to $500,000, you are hurt by 50%. Pretty simple really.

Ghost of Igloi wrote:

Market is down 1%, life is good....

If the trend continues today there may be built up panic over the week-end and we can see a real drop on Monday and through next week.

The question is will this be the real drop that is certainly coming, or a momentary dip that will recover before the real drop hits.

The Dow is up 66% in the last 5 years.

The Dow is up 66% in the last 5 years.[/quote]

That alone should tell you to be cautious with your investments. Golly gee, well shut my mouth.

Igy

GuessCo wrote:

K5 detector wrote:

Hi, K5/Igy! It's funny that you constantly change your username, then complain about someone else's name. Good joke!

I come up with my own names and don't steal others. You know, like you do. Again back to the total lack of originality.

And can you explain how an investor is hurt before they sell their investments? Thanks!

If the value of your holding drops from $1 million to $500,000, you are hurt by 50%. Pretty simple really.

That's just idiotic. No one is "hurt" when an investment account value drops. The account value is meaningless until you decide to sell. Pretty simple really.

Dow down 300, life is good.....

Indeed...at least for those looking to buy. Not as good for those selling. Neutral for everyone else.

Good for me since I am short....

Maybe. It depends on where you bought.

Sure, just like those cheering a rising market, only matters if you close positions or have a long time horizon....

Big Dog Investments wrote:

GuessCo wrote:

If the value of your holding drops from $1 million to $500,000, you are hurt by 50%. Pretty simple really.

That's just idiotic. No one is "hurt" when an investment account value drops. The account value is meaningless until you decide to sell. Pretty simple really.

I honestly cannot believe how stupid you guys are.

Ghost of Igloi wrote:

Sure, just like those cheering a rising market, only matters if you close positions or have a long time horizon....

Oops. Posted before I could write "Agreed!"

So much for TINA or the belief that stocks can serve as a superior proxy for bond income. VNQ -3.5%, XLU -2.8% compared to TLT -1.5%.

Igy

What's the time frame?

Econ,

I don't have a time frame, but in 2006 the 10 Year Treasury was at about 5% yield, today at 1.6%. Investors have bought the fiction that you can own stocks as a bond like substitute. Granted I think that the Treasury market is overvalued as well, but you will get a return of principal ten years out and clip the 1.6% annual coupon. On the other hand I have a hard time reconciling a better outcome for TINA investors. For example, VNQ (Vanguard REIT ETF) is down about 3.5% today and the annual yield is 4%.

Igy

Stating what's obvious wrote:

Another record close! Life is fabulous!

Down 2%. Life is fabulous!

Ghost of Igloi wrote:

Stating what's obvious wrote:

Another record close! Life is fabulous!

Down 2%. Life is fabulous!

Make that 2.5%. In a single day.

More to come?