After the brutal action the last two days the NASDAQ is now down 21% for the quarter. It's amazing that the government is going to shut down with everything else happening.
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NASDAQ down over 20% in Q4; seventh worst all time
- Thread starter RolandGunner
- Start date
Can anyone explain why the stock market is crashing like this now when in the summer it was going gangbusters?
Is because the Fed decided to raise interest rates?
Should I be worried that a recession might follow soon because of the poor performance of the stock market recently?
Is because the Fed decided to raise interest rates?
Should I be worried that a recession might follow soon because of the poor performance of the stock market recently?
The issue is mostly uncertainty and tariffs from the Trump admin. So long as Congress puts a leash on him until he's put down any recession would be short lived. PMI is in the mid 50s as of 2 weeks ago which means growth.
OP
OP
Its a combination of higher interest rates, the fucking stupid tariffs, the government shutdown, and even fears about how Brexit is going to impact Europe. A lot of reasons to get out of stocks right now.
Eliminate debt, make a safety fund in low risk investments, dollar-cost-average your other investments if you want to keep that money in the markets
If you've got investments:
STAY CALM.
Now is not the time to sell. It may be scary, it may feel like you've lost a shit ton of money, but just remember, like all storms: this too shall pass.
It might take another two years, but long term gains will outweigh any of these short term dips.
Keep your head level, don't panic.
STAY CALM.
Now is not the time to sell. It may be scary, it may feel like you've lost a shit ton of money, but just remember, like all storms: this too shall pass.
It might take another two years, but long term gains will outweigh any of these short term dips.
Keep your head level, don't panic.
OP
OP
I was in college when the dot com bust happened and it's super-tough competing with people who lost their jobs after you graduate. Its even more important to get internships or build some kind of relationship with an employer before you graduate. Or look at grad schools that don't require huge loans if that interest you.
God, it's so hard to not panic or have anxiety, but just remember to not do anything emotionally. hold tight and long-term you'll be fine.
Its pretty much the fed.
Bernanke and Yellen juiced the stock market for the better part of a decade. There are some studies out there which estimate that as much as 85% of the entire bull run over the past 8 years can be attributed to the zero rate environment they fostered.
Now that Powell is meaningfully raising rates (which is a good thing, mind you, they've been far too low for about 5 years now) the house of cards that Bernanke and Yellen built is falling apart.
The implications of this for the broader economy are pretty meaningless though. Fundamentally everything is still going strong, and Powell's rate hikes (which are actually very minor from a historical perspective, the fed fundss rate is still less than half of what is was prior to the last recession) aren't going to change that.
I laugh at the loses my stock account has faced this past year. Go ahead and drop number your continued losses can not hold in the face of growth.
No AG, no Chief of Staff, no defense secretary, a shutdown about to happen, and the stock market crashing.
We're witnessing the full collapse of the American government.
We're witnessing the full collapse of the American government.
If I were closer to retirement I might be, but at that point you'd hope your asset classes have been adjusted properly. Interesting insight.
The market has been hot for so long this was expected no matter what. Stay calm people, don't do anything hasty, remember almost all of us our long term investors.
Yup. Everything I've learned from threads here has advised me to keep my superannuation investments where they are in an indexed fund growth plan, and if a recession does happen, invest additional money on the way down. Buy the dip, as they say.
The only thing I have to worry about is staying employed during that period.
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I like how after my tech stocks tanked 40% in October, every time it now drops another 3 or 5% a day I'm like HAHA Joke's on you God. 5% of nothing is NOTHING!
its crazy to me, and this is of course 100% ancedotal, but my phone/email is getting bombarded with recruiters/companies looking for IT people. Usually the last few years between thanksgiving and christmas is dead slow. I've actually had to job hunt during this time in years past and its so hard because companies aren't looking to start anything till the new year, hiring people are all on vacation for long periods of time as well.
jfc no we're not.
I work in tech and have quite a few shares in this company via RSUs and ESPP. I can't even sell right now (no trade period), but should I be thinking about selling / diversifying? Or should I just hold onto it all since they're RSUs anyway.
Always sell your RSUs as soon as they vest. Holding stock in your employer carries additional uncompensated risk because of the correlation between your employer's success and your job security / salary growth. One of the basic rules of investing is that you should not take uncompensated risk.
Besides, if your vesting schedule is anything like mine, you are probably forced to carry high enough exposure to your employer's stock price as it is even if you sell the same day it vests.
ESPP / stock options is a more complicated story because you actually are compensated for the risk in the form of the discount and there are tax consequences to selling. So there is no one-size-fits-all answer for that.
fml for starting to invest in retirement like 2 years ago. Any gains have been wiped out. (I know its retirement Im not supposed to worry yet, but it still is disheartening to see).
on the other hand, let it all burn if it finally gets a certain sect of people to help us vote this fuckhead out.
on the other hand, let it all burn if it finally gets a certain sect of people to help us vote this fuckhead out.
But if you look at how much markets rose over the past few years, it's been the sharpest sustained increase in forever? So it's not really a big deal.
I vest monthly, and as is have a pretty size-able amount. Might look into unloading some of these when the next trading period opens.
From what I understand in this too is that 08s was built entirely on sham mortgage trading and was a far more global impact. Rates are just incredibly low and if controlled rise is done right we should have another one but not nearly on the scale of 08
Unless you're 50 there's no reason to be shifting everything around.