Largest one day drop in U.S. stock market - in history

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Largest one day drop in U.S. stock market - in history

Post by DNS » Mon Feb 05, 2018 10:19 pm

The U.S. DJIA dropped 1,175 points today after dropping 665 last Friday. It is the largest single day drop in U.S. history, however, in terms of percentage drop, it was -4.6% which is still very far from the -22.6% on 10-19-1987.

The pundits say it is because the jobs market is looking good, the economy is doing well, so the stock investors fear interest rates will be going up several times this year. That just makes me glad not to be part of that group, that wishes ill for the common workers, so that the Fed will keep interest rates low. Of course, I am sure there are some investors who don't think like that, but that was the general consensus among the pundits.

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Re: Largest one day drop in U.S. stock market - in history

Post by Malcolm » Mon Feb 05, 2018 10:31 pm

DNS wrote:
Mon Feb 05, 2018 10:19 pm
The U.S. DJIA dropped 1,175 points today after dropping 665 last Friday. It is the largest single day drop in U.S. history, however, in terms of percentage drop, it was -4.6% which is still very far from the -22.6% on 10-19-1987.

The pundits say it is because the jobs market is looking good, the economy is doing well, so the stock investors fear interest rates will be going up several times this year. That just makes me glad not to be part of that group, that wishes ill for the common workers, so that the Fed will keep interest rates low. Of course, I am sure there are some investors who don't think like that, but that was the general consensus among the pundits.
It is a buying opportunity. The world economy is growing. Fundamentals of the economy are great.

The market dropped because if interest rates rise, money becomes more expensive, and this affects returns on investments made with borrowed money. At a micro level this is nothing, but at the macro level, mutual fund level, this gets very expensive very quickly.

This will cause some investors to move their money into bonds, since yields are going to rise. Of course, let's hope the new Fed chair keeps his head and is super cautious about raising the Fed rates.

This is not a dis on workers, but there is some risk of inflation, because we are at nearly "full" employment. If borrowing money becomes expensive, this makes commercial paper more expensive, and this can have an adverse affect on jobs and growth.
Buddhahood in This Life
འ༔ ཨ༔ ཧ༔ ཤ༔ ས༔ མ༔


[A]nything at all that is well spoken is the word of the Buddha.

-- Ārya-adhyāśaya-sañcodana-nāma-mahāyāna-sūtra

The different sūtras in accord with the emptiness
taught by the Sugata are definitive in meaning;
One can understand that all of those Dharmas in
which a sentient being, individual, or person are taught are provisional in meaning.

-- Samadhirāja Sūtra

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Re: Largest one day drop in U.S. stock market - in history

Post by Queequeg » Mon Feb 05, 2018 11:39 pm

Not been in agreement with Malcolm lately, but I agree on this.

Market has been a little overheated lately and there are some reasons for concern regarding global stability, in no small part whipped up by POTUS, but fundamentals look solid.

This is profit taking, reallocation based on interest rate and tax law forecasts, and frankly, I'm going to bet its also quite a bit of retail investors who jumped on the bandwagon in the last year catching a little vertigo.

The reality is that there is so much money sloshing around right now, its actually surprising that inflation has not kicked in. I can't spell it out completely, but part of that probably is related to inequality and money not really being in the pockets of the people who will spend it. As wages rise, depending on whether we actually start putting a dent in the inequality, we are going to need to be careful about inflation.
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And chanted but once, “Namo Buddhaya!”
Have certainly attained the path of the buddhas.

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Re: Largest one day drop in U.S. stock market - in history

Post by Quay » Mon Feb 05, 2018 11:47 pm

A great deal of the action today on Wall Street was driven by computerized trading, where when things started to drop the programs followed and caused a further drop and on and on until it was quite a spectacular drop. These same programs will soon recognize undervalued stocks and start buying them up and another rise will occur. Rinse, repeat.
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Re: Largest one day drop in U.S. stock market - in history

Post by Queequeg » Tue Feb 06, 2018 12:02 am

Quay wrote:
Mon Feb 05, 2018 11:47 pm
A great deal of the action today on Wall Street was driven by computerized trading, where when things started to drop the programs followed and caused a further drop and on and on until it was quite a spectacular drop. These same programs will soon recognize undervalued stocks and start buying them up and another rise will occur. Rinse, repeat.
Good point.

This is one of those moments when you need brass balls.

I heard a story that when Lehman and Baer Sterns were going down, John Mack was marching through the trading floors screaming, "There's blood in the water!!!!"
Those who, even with distracted minds,
Entered a stupa compound
And chanted but once, “Namo Buddhaya!”
Have certainly attained the path of the buddhas.

-Lotus Sutra, Expedient Means Chapter

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Re: Largest one day drop in U.S. stock market - in history

Post by Ricky » Tue Feb 06, 2018 12:20 am

What are some good stocks to buy right now? Might be a few bargains out there.

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Re: Largest one day drop in U.S. stock market - in history

Post by Simon E. » Tue Feb 06, 2018 1:32 am

The super- canny have made a killing today by going short and selling quickly. :thumbsup:
If you use the word 'mind' without defining your terms I will ask you politely for a definition. :smile:
This is not to be awkward. But it's really not self-explanatory.

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Re: Largest one day drop in U.S. stock market - in history

Post by DGA » Tue Feb 06, 2018 1:43 am

Ricky wrote:
Tue Feb 06, 2018 12:20 am
What are some good stocks to buy right now? Might be a few bargains out there.
Defense industry

pay attention to what defense authorizations are moving through Congress, and which bids are announced

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Re: Largest one day drop in U.S. stock market - in history

Post by SunWuKong » Tue Feb 06, 2018 2:56 am

Worker shortages could be addressed by protecting the Dreamers from deportation and crafting a viable immigration policy such as a path of citizenship for long term guest workers and immigrants in our armed forces.

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Re: Largest one day drop in U.S. stock market - in history

Post by TharpaChodron » Tue Feb 06, 2018 3:18 am

DGA wrote:
Tue Feb 06, 2018 1:43 am
Ricky wrote:
Tue Feb 06, 2018 12:20 am
What are some good stocks to buy right now? Might be a few bargains out there.
Defense industry

pay attention to what defense authorizations are moving through Congress, and which bids are announced
Always a good Buddhist choice. :)

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Re: Largest one day drop in U.S. stock market - in history

Post by Ricky » Tue Feb 06, 2018 3:29 am

DGA wrote:
Tue Feb 06, 2018 1:43 am
Ricky wrote:
Tue Feb 06, 2018 12:20 am
What are some good stocks to buy right now? Might be a few bargains out there.
Defense industry

pay attention to what defense authorizations are moving through Congress, and which bids are announced
Might not be a bad idea if war with NK is imminent but I think I'll pass.

General Electric is looking like a smokin hot deal. :thumbsup:

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Re: Largest one day drop in U.S. stock market - in history

Post by Ricky » Tue Feb 06, 2018 3:31 am

TharpaChodron wrote:
Tue Feb 06, 2018 3:18 am
DGA wrote:
Tue Feb 06, 2018 1:43 am
Ricky wrote:
Tue Feb 06, 2018 12:20 am
What are some good stocks to buy right now? Might be a few bargains out there.
Defense industry

pay attention to what defense authorizations are moving through Congress, and which bids are announced
Always a good Buddhist choice. :)
Buddha supported military defense back in his day so why not.

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Re: Largest one day drop in U.S. stock market - in history

Post by Queequeg » Tue Feb 06, 2018 5:19 am

Ricky wrote:
Tue Feb 06, 2018 3:29 am

General Electric is looking like a smokin hot deal. :thumbsup:
You mean a hot mess.
Those who, even with distracted minds,
Entered a stupa compound
And chanted but once, “Namo Buddhaya!”
Have certainly attained the path of the buddhas.

-Lotus Sutra, Expedient Means Chapter

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Re: Largest one day drop in U.S. stock market - in history

Post by Ricky » Tue Feb 06, 2018 6:26 am

Queequeg wrote:
Tue Feb 06, 2018 5:19 am
Ricky wrote:
Tue Feb 06, 2018 3:29 am

General Electric is looking like a smokin hot deal. :thumbsup:
You mean a hot mess.
Its a decent price to get in for a long term investment. But lets hear your picks Warren Buffet. :cheers:

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Re: Largest one day drop in U.S. stock market - in history

Post by MiphamFan » Tue Feb 06, 2018 7:54 am

Ethereum, NEO, and Monero

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Re: Largest one day drop in U.S. stock market - in history

Post by Wayfarer » Tue Feb 06, 2018 10:43 am

It’s worth it all, just to imagine Trump squirming about it. :smile:
Only practice with no gaining idea ~ Suzuki-roshi

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Re: Largest one day drop in U.S. stock market - in history

Post by Queequeg » Tue Feb 06, 2018 1:07 pm

Ricky wrote:
Tue Feb 06, 2018 6:26 am
Queequeg wrote:
Tue Feb 06, 2018 5:19 am
Ricky wrote:
Tue Feb 06, 2018 3:29 am

General Electric is looking like a smokin hot deal. :thumbsup:
You mean a hot mess.
Its a decent price to get in for a long term investment. But lets hear your picks Warren Buffet. :cheers:
Because everyday we are learning more and more about how this massive, sprawling conglomerate has been mismanaged for decades. It's more likely it gets broken up and sold off than returns to what it used to be. Maybe it's parts are worth more than the whole? Maybe look at the breakup of Tyco for a precedent.

What makes you think it's a buy?
Those who, even with distracted minds,
Entered a stupa compound
And chanted but once, “Namo Buddhaya!”
Have certainly attained the path of the buddhas.

-Lotus Sutra, Expedient Means Chapter

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Re: Largest one day drop in U.S. stock market - in history

Post by Malcolm » Tue Feb 06, 2018 1:32 pm

Aapl
Buddhahood in This Life
འ༔ ཨ༔ ཧ༔ ཤ༔ ས༔ མ༔


[A]nything at all that is well spoken is the word of the Buddha.

-- Ārya-adhyāśaya-sañcodana-nāma-mahāyāna-sūtra

The different sūtras in accord with the emptiness
taught by the Sugata are definitive in meaning;
One can understand that all of those Dharmas in
which a sentient being, individual, or person are taught are provisional in meaning.

-- Samadhirāja Sūtra

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Queequeg
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Re: Largest one day drop in U.S. stock market - in history

Post by Queequeg » Tue Feb 06, 2018 4:40 pm

AMZN... Its expensive, but until the regulators start trying to break it up, they'll just keep bringing their capital to the table and disrupting industries with inefficiencies... very interested to see what they are going to do to the health insurance industry...

TSLA - and not because of their cars... its really about the batteries... news out of Australia on their giant battery and plans to bring solar to 50K homes, combined with storage to basically equal the output of a powerplant... and they're going to start selling solar panels and power walls (giant batteries) at Home Depot and Lowes... Ideally, someone like Ford will buy out the car company and bring their knowledge of scale production.

Are we going to start giving each other investing tips? Given our record with dharma tips we might be bringing collective ruin.
Those who, even with distracted minds,
Entered a stupa compound
And chanted but once, “Namo Buddhaya!”
Have certainly attained the path of the buddhas.

-Lotus Sutra, Expedient Means Chapter

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Re: Largest one day drop in U.S. stock market - in history

Post by Malcolm » Tue Feb 06, 2018 4:54 pm

Queequeg wrote:
Tue Feb 06, 2018 4:40 pm
AMZN... Its expensive, but until the regulators start trying to break it up, they'll just keep bringing their capital to the table and disrupting industries with inefficiencies... very interested to see what they are going to do to the health insurance industry...
Buy a fund to take advantage of amazon. It is too volatile on the best of days for most people's comfort.

Apple has much better fundamentals. P/E ratio 16.22, Mkt. cap 811.89B

Amazon - P/E ratio 226.99, Mkt cap 675.09B

In other words, if you buy Amazon, you are paying $226.99 for every dollar of asset value. This is not a bargain. Amazon is way, way, over priced. Same with Tesla. It's a suckers bet.
Buddhahood in This Life
འ༔ ཨ༔ ཧ༔ ཤ༔ ས༔ མ༔


[A]nything at all that is well spoken is the word of the Buddha.

-- Ārya-adhyāśaya-sañcodana-nāma-mahāyāna-sūtra

The different sūtras in accord with the emptiness
taught by the Sugata are definitive in meaning;
One can understand that all of those Dharmas in
which a sentient being, individual, or person are taught are provisional in meaning.

-- Samadhirāja Sūtra

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