>>1050760 It's a complicated situation. The US problem is probably the easiest to grasp.
The Fed has been printing money (quantitative easing) since the mortgage crisis of 2008. It was necessary but harmful.
The Fed is in the process of raising interest rates and they are putting a hold on their policy of QE. We are starting to experience the consequences of our QE policy. As equities correct, Americans will lose their life savings and retirement.
they don't need to do anything - they didn't step in last time because the markets dropped, they stepped in because there was a big credit crisis and a massive unknown number of credit default swaps linking various different banks and threatening to cause serious damage to the financial system
>>1050671 The market objectively belongs much lower than it currently is: "fixing" the bear market would make the financialization bubble worse and hurt the US economy even more (the actual US economy where we make things and do business, not this stock market bullshit).
The Dow belongs around 6000 according to its inflation-adjusted 100 year growth trend. >inb4 someone shows up with a chart with a log scale
Stay/get out of the stock market until the correction is over. To be honest, if you have any kind of shares or market traker then you're in pretty deap already as the market has dropped 20% off its peak. If you sell everything now you run the risk of locking in a loss just before it rebounds. That said, I think everybody is expecting a bear run, and that kind of thing can be a self-fulfilling prophecy, so you're better off out. If you're keen to capitalise on it you could short the market or even buy gold, but both of those come with risks.
Very few individuals can time the market. Someone that is new to investing, wouldn't even know where to start.
>>1050793 There's not much that you can do. The smart money has already exited the market. I recommend that you establish a type of emergency cash fund for you and your family. Do everything possible to limit your expenses.
Read up on investing, there will be a lot of money to be made in the following years. However, there will also be a lot of suffering first.
>>1050833 Yes, I completely agree the market is overvalued and fundamentally weak, but the fed does whatever it takes to keep it going up. It's never going to admit that all this money printing only exacerbated the problem.
>>1051113 Shut up, idiot. Bear markets, especially secular bear markets, are complex. People like you who dispense "hurr derr" advice tend to be only one's truly harmed in a bear market because you're too stupid to know its part of the normal business cycle.
>>1051124 Oh, yes enlightened one. The Fed in no way inflated the securities markets. They found a way to create value out of thin air without ever having to pay for it.
Face it, moron. Monetary policy is a zero-sum game. They don't sell a good or service, creating value. Any positive effect the Fed creates causes a negative one somewhere else. At the bare minimum, it's amplifying the business cycle, so expect to see a bear market of a similar magnitude of the bull market.
Yep. printing money just kicks the can down the road. It does help smooth the ride but doesn't make the problems go away. It does allow things to correct though without actually crashing. That would be worse.
>>1050802 >"My best piece of advice is to time the market by selling right after a 14% drop, waiting for the situation to correct itself, then buying when everybody is jumping in the stock market agian."
So, like that dumb golden retriever, you suggest buying high and selling low?
>>1051142 Moron, the purpose of the Fed isn't to "sell a good or service" or to "create value." It's purpose is to stabilize the monetary system and provide conditions conducive to high employment, increasing GDP, liquidity and efficiency in credit markets, and low (but not zero) inflation.
The Fed has done all of the above, and NO movement of the stock market has any effect on any of that. Companies don't fire people because the Dow Jones index falls a bit. Banks don't call in loans because oil is in a slump. Prices don't skyrocket just because the S&P took a dip.
You're being stupid. You're reading headlines and parroting bullshit someone else told you about the situation. You're being manipulated for political purposes.
Last I checked, the economy was doing fine, inflation was appropriately low, and employment is stable. Sure, bear markets aren't fun, but they're historically short, small, and meaningless in the long-term.
>>1050825 Nobody has suggested going negative. When they talk about negative interest rates, they're talking about negative real interest rates. We had negative real interest rates during the 80s, when you could get 10% interest from your savings account but the inflation rate was near 20% at times.
When the average blogger/4chan nut talks about negative interest rates, they do not understand this distinction. Remember:
real interest rate = nominal (listed) interest rate - inflation
>>1051178 >You're being manipulated for political purposes This is what's really going on. The banking interests have the most to gain from having a pro-business republican in power. So, right before an important election, they will create doom and gloom so that the republican candidate can say, "Look at what 8 years of a Deomcrat president has wrought!"
>>1051178 You're missing the point. It's not just "providing market conditions". It's engaged in active market manipulation. When the Fed pushes equity prices up with easy money, who pays for that? Monetary policy is zero-sum. The money has to come from somewhere. And it could be many places. Savers receive lower interest rates and make less money on their bank accounts. The CPI increases, which lowers demand. The upturn is followed by an equally large downturn. The Fed can only stimulate at the cost of something else.
>>1051223 >When the Fed pushes equity prices The Fed doesn't manipulate the equity markets. The Fed doesn't really care about stock prices, in general, though it will occasionally comment in unusual cases (e.g., "irrational exuberance").
The Fed cares about money supply, liquidity, credit markets, and inflation. Yes, policies that affect these things inevitably affect equity prices as well, as happened when bond prices fell.
Not to mention, where is this fucking "price" you keep talking about? I made 250% gains from 2009-2015. 250%. 2. 5. 0. %. If I have to give back 20-30% back in the short term as part of the natural business cycle, who the fuck cares?
>>1051244 >The Fed doesn't really care about stock prices Completely false.
>Not to mention, where is this fucking "price" you keep talking about? I made 250% gains from 2009-2015. 250%. 2. 5. 0. %. If I have to give back 20-30% back in the short term as part of the natural business cycle, who the fuck cares? You must be fucking dense. Somebody is paying for that money that went into the stock market. We all came out ahead but that money didn't come out of nowhere. There are costs to economic intervention that are being paid or going to be paid. You just don't care because "well I got muh money."
>>1051320 Listen kid, the market's aren't a zero-sum game. Thinking they are is why you're foreverpoor. Time to grow up.
And no, the Fed doesn't care about stock prices. Stock prices are a symptom, not a condition. The Fed treats root problems, not symptoms.
And you're damn right I don't care because I got muh money. None of us should. Long-term investors shouldn't give a flying fuck about some short-term downturn, no matter how many "happening" threads you and your /pol/ and /r9k/ buddies post. Because we're making mad bank.
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