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The market will recover eventually, r-r-right? I just invested

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Thread replies: 70
Thread images: 9

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The market will recover eventually, r-r-right?

I just invested 10k in index funds a week ago and now it's down to 9.5, unsure if I should pull out or not.

From what I read everywhere the index funds will ALWAYS recover eventually, is this true?
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STAY IN CASH NIGGA
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Yeah OP, it's coming back any minute now.
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>>1024999
literally what
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>>1024998
Nope this is the crash that ends it all.
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>>1025001
I know it won't come back to my levels any time this month or even year, but is it possible a few years down the road to do so?
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>>1025001
Lol we gud.
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>>1024998
There isn't any universal law that ensures stocks will always come back up to where they were when you bought in.
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>>1025004
Yes it will eventually unless nuclear war or meteorite. It might take years or 2 weeks.
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AHHH!!! FIRST SIGN OF TROUBLE! ABANDON SHIT!

Trying to time the market like this is exactly why people lose money in the market in the first place.
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There should seriously be a sticky about this so all the scared chickens won't fuck up their finances based on "Happening" memes.

Yes. It will "recover". That word is a bit too loaded though because it implies there's some type of crash happening.
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It'll recover as long as the world doesn't end since indices don't go bankrupt and the world economy grows. Individual stocks though... That's gambling.
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The end is nigh boys.
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>>1025014
Entering into any trade without a exit strategy is naive. I'm not saying you need a iron condor in place for every trade. Or even a stop-loss. But you should know when it's a bad hold and taking a red day isn't nearly as bad as having no portfolio left.
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>>1024998
> index funds will ALWAYS recover eventually, is this true?

Nikkei has not recovered the last 20 years with the same monetary and economic conditions America and Europe is in right now...
Good luck
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>>1025004
Good grief man, it dropped 5%, calm down, it's only $500.
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>>1025036
That's why you diversify in a global etf(s) instead of one country. The chances of the world going to shit is pretty slim.
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>>1025044
Addt. Also maintaining a constant rebalance strategy to harvest volatility.
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>>1024998
Patience is the only smart way to look at your investments.

It's an index fund, people with years of experience get paid a lot of money to make sure the funds are allocated to perform.

Also, markets fall and come back stronger.

If the stock market always went up it would be too easy for every common person to make money.

Just wait it out, or cut your losses; do some research and diversify into blue chips.
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So I'm still trying to learn what the fuck I'm doing and I'm not sure what just happened here.

I sold this put option in the investopedia sim just now and it did seem to give me the 13 or $1400 dollars it looks like here. But I thought the option would only give me the amount quoted when I bought it.

So I bought it, as a put option, predicting the price would fall but I thought it would only give the the amount that I was quoted. But the movement just now obviously went a whole lot further and yet it does seem to have given me the full amount.

Is that right or is this sim a bit out of whack? I mean I'm pretty sure it's just me not understanding what the fuck is going on but it does seem to have some pretty crazy figures written all over it and it's confusing the fuck out of me.
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>>1025044
Diversification only works when the assets are not correlated.
And right now all markets are all almost perfectly correlated.
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>>1024998
That's why you dollar cost average on corrections and panic driven dips.
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>>1025097
By dollar cost average you mean spend x a month on the index, regardless of shares bought right?

ALso what are corrections?
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>>1025090
I think the major logic behind this belief isn't that it keeps your money safe, but that if the world truly goes to shit your money isn't worth anything anyway. And anything less than complete economic ruin will recover eventually(hypothetically).
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DIS and UPS should crush earnings next month right? Or is it already completely priced in?
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>>1025100
That is precisely the logic. The world not ending is a safe bet.
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What's the best stock to short now? What is heavily involved with China?
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>>1025100
This is my reasoning too
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>>1025044
>diversify in a global etf(s) instead of one country. The chances of the world going to shit is pretty slim.


Umm, wrong- world markets are going to shit right now (nearly every single g20 country is in a bear market). The only market that has held STEADY is in the US. Even with the DOW down 400, it's a trivial drop if you look at it from a year long perspective.
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>>1025099
>>1025099

Essentially yes, but there's a few different ways. If you have 10k, spend 2.5k, to start, then another 2.5k a few months later, then maybe another 2.5k on today's dip.

Corrections are a broad term to describe a situation when people realize the price of something is out of line with the fundamentals. So things can correct upward as well, but in your above context, it's correcting down as people realize Chinese stocks are still shitty and wants to sell. And that Global manufacture could take a hit from China's recession.
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>>1025141

Enough trivial drops and you have a recession- you're exactly right- look at the trajectory of the market since 2008.

400 points IS a drop in the bucket.

It's merely a sign that the market's correction (down to 10,000) is looming

The problem here is the banks forgot everything, they are loaning to people that can't afford mortgages because hey, the market will NEVER go down, all the developers buying houses for 3 million, spending 1 million to knock it down, and selling it for 10 mil 6 months later...

This is not sustainable
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>>1025100
This is why I put 5% in PMs
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>mfw 80% of my 401k is in emerging markets
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>>1025141
>Umm, wrong- world markets are going to shit right now (nearly every single g20 country is in a bear market). The only market that has held STEADY is in the US. Even with the DOW down 400, it's a trivial drop if you look at it from a year long perspective.
This is not even close to shit you dumbass. Shit would be nuclear exchanges. Unless that happens, things will recover.
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>>1025164
just dont retire anytime soon and you will be okay
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>>1025141
>it's a trivial drop if you look at it from a year long perspective.
Also, why the hell would you need another perspective? Are you 60 years old? Just park that money in an index fund and go cash in the decade before your retirement.
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>>1025001
Where did you get that screen cap
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>>1025168

Idiot- this is a biz board so global recession qualifies as markets going to shit.

Go back to /pol if you want to discuss nuclear war
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>>1025180
>Idiot- this is a biz board so global recession qualifies as markets going to shit.
Yes it's a business board, not a gambler's board. Your short term perspective is irrelevant. I'll ask again, are you 60 years old?
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>>1025001
Never fucking reply to me again unless you're contributing to the thread.
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>>1025158

Trivial drops do not lead to a recession because if the drops are truly trivial, market forces will see the dips at trivial and price out the drops.

I'll play along with your arguement that today's drop is a sign of a US recession... Can you elaborate on some systematic or sector specific causes?
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>>1025011
>yfw the Nikkei broke 20000 last year disproving this bullshit "rule"
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>>1025090
No they're bloody well not
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>>1025001
Does finviz show prices in real time?
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>>1025187

So my main concern is that all the lessons of 2008 seem to be forgotten.

The banks are getting much forgiving with how they loan to and how much.

The real estate market goes up and up and up and up- record prices everywhere.

What I see is, at some point, real estate buyers will say "you know it was 3 million last year I don't WANT to pay 10 why should I'

And that'll be a problem, because if the price of homes slips 10%, the people that own less than 10% equity in their mortgages are underwater-

Won't affect someone that bought in 2008- because down 10%, oh no, only 5 times my money in 7 years, but for the people that bought in at the top...
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>>1024998
Which site is that my nigga?
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>>1025141
And this matters at all for a guy in his twenties saying money for retirememt?
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>>1025176
Finviz com
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>>1024998
Uh, 401k can't short the market from what I can tell, so it will always rise over the long term.
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>>1025382
Yes, indirectly- if you no longer work at the company, you can roll your 401k into an IRA account at a brokerage firm of your choice and buy inverse funds. You still won't be able to do standard shorts
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>>1024998
dude

YOU KNEW THE BULL MARKET WAS ABOUT TO END
if you didn't you're blind
WHY invest in index funds now?
prepare to break even in about 3 to 4 years
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>>1025164
>he has a 401k
>401k in emerging markets
jesus kek
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So will the best time to buy into an index be in a few years?
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>>1025563
Exactly at this moment in 2.4 years time.

But seriously, you fucking nigger, we can't predict what happens to the stock market tomorrow, let alone what precisely happens in years.
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>>1025567
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>>1025494
Who cares about 3-4 years if your horizon is 30-40 years? Sure the profits would perhaps(if the market crashes inbetween) be higher but the difference wouldn't be that huge.

Shortsightedness everywhere on this fucking board. Go play roulette if you want quick money.
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>>1025212
The problem isn't going to be people not wanting to buy but people defaulting on their loans. Which will make banks shake. Which will make them give out less loans. Which will cause housing prices to drop. And suddenly all those houses the banks own are worth shit compared to what they paid for them. And then the taxpayer has to bail them out as it happens every time. People never fucking learn.
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>>1025620
dickhead, there's literally no fucking purpose in buying index funds now. he could just wait, buy them cheaper in 2 or 3 years before another bull market and get huge profits with less money.

his horizon is most certainly not 30-40 years if he says he's thinking of pulling out a week after buying index funds

you're such an idiot, you know that? the daytrading shit is memes, everybody knows that, don't act like you're the only one who knows what long-term is.
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>>1025001
>no nflx
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>>1025055
>>It's an index fund, people with years of experience get paid a lot of money to make sure the funds are allocated to perform.

People don't get paid to manage index funds.
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>>1025001
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>>1025650
>It's an index fund, people with years of experience get paid a lot of money to make sure the funds are allocated to perform.
No
>Also, markets fall and come back stronger.
maybe, after the short cycle is over. and, you know, as long as the us dollar doesn't fucking collapse which is a possibility. also markets "coming back" stronger can just be a fake bull market, basically a bubble, which in turn will make things even worse later on.
>If the stock market always went up it would be too easy for every common person to make money.
I don't know what the fuck you're trying to say with this
>Just wait it out, or cut your losses; do some research and diversify into blue chips.
great advice to invest into blue chips when the dow industrial average is down too because this is market wide. there's nothing to do except wait for the bottom
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>>1024998
>>1024998
i know that feel OP

put down $1500 a week ago, down $30
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>>1025659
I'm not sure why you linked to my post..
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>>1025661
Fucking hell anon, where did you put that down? A stripper's g-string?
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>>1024998
lmao only index funds? i bet you though to yourself that you're safer that way. Index funds don't pay dividends and don't do shit. just take alll that money and invest it in RAI. they pay like 3-4% dividends a year and it's a stock that's actively going up over hte last like 3-4 years. It sells cigarettes and vapes. man you're a fucking idiot.
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>>1025164

Are you a troll? If not, how can you be this stupid?
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>>1025620
>if your horizon is 30-40 years
if your horizon is 30-40 years

People actually wait this long? wtf
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>>1024998
"Sons of America, of China, my brothers! I see in your eyes the same fear that would take the heart of me. A day may come when the credit of men fails, when we forsake our stocks, and break all bonds of brokership; but it is not this day! An hour of selloffs, and shattered ratings, when the Age of Wall Street comes crashing down; but it is not this day! This day we buy! By all that you hold dear on this good earth, I bid you buy, Men of the West!"
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>>1026097
Lol
Thread posts: 70
Thread images: 9


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