Volatility begets more volatility. This is mostly short term traders making these moves, profiting off the violence.Update - from its low point on Tuesday, the dow went up about 1200 points by the close.
One report stated that traders believe Trump will do some type of stimulus program, and the hope of a stimulus was enough to trigger some buying.
However, saw another report from a fund manager saying that he thinks this is still very unsettled and he expects volatility to continue for another month before things bottom out for good.
They serve an important purpose. They add liquidity to the market. I’m not a day trader so my soul is quite intact.God bless their vacant souls. And yours.
I do know this, though: I've had some of my retirement savings in non-stock funds, and once this feels like it's bottomed out, I'm getting all that back in.If you have time, I just can't possibly see what benefit there is for the average joe to convert shares to cash right now. Trying to game it, selling now then buying back at a lower price a month from now, is like rolling the dice in Vegas. Keep what you have. It's guaranteed to come back, eventually.
If you have some excess savings that you can live without, certainly you can load that in at some low-ish point in the near future. But no one knows when that is. Probably smarter to put it in periodically over the next few months, average out the spikes a bit.
NHL season suspended. MLB season postponed. Nascar is racing with no fans. That might be the one sport that won't cancel since the drivers don't need to come into contact with each other. But I won't watch Nascar. You can't make me. Same with golf.HOLY COW, SP500 down 216 at this point. Sports events--the conference tournaments, the NCAA tournament, the NBA all canceled. How about other sporting events--the NHL? Baseball spring training games? And similar cancellations elsewhere in the economy. The market crash seems justified.
Not so fast. Newton's first law of motion is often stated as. An object at rest stays at rest and an object in motion stays in motionwith the same speed and in the same direction unless acted upon by an unbalanced force.It's happening. This is a once in a decade investment opportunity. Get your cash ready.