Stock Market

[chloevankatie]

I am not totally financially illiterate, but I am not extremely educated about the stock market either.

Can someone please explain to me like I am 5 years old what exactly is happening to the markets and possible long term ramifications?

I am curious about the where the economy is currently going and I know we have some folks here that are well educated that can explain and/or direct me to resources.

[The1Slayer]

Let's meet....... I used to be an Investor for 2 years at Paine Webber. I can tell you all about it over wine.

[Lovinglifeinaustin]

Fear, panic, and uncertainty. The market will recover. Anyone investing in stocks must be willing and able to ride out the volatility, and stay for the long run. The market will reward you for it.

FWIW, I managed a $500 million portfolio for a national charity for 12 years, including the 2008 crash. There was panic aplenty back then, and those who acted on that panic and left the market not only bought high and sold low, but they missed the recovery.

[donghead]

Best time to buy is when prices are low!

[chloevankatie]

Best time to buy is when prices are low!

I was kinda wondering if I should buy in right now, lol. People have told me they lost thousands over night. Obviously if this trend continues, there would be ramifications in the hobby world. I know a lot of you guys are investors.

[NordicJag]

I was kinda wondering if I should buy in right now, lol. People have told me they lost thousands over night. Obviously if this trend continues, there would be ramifications in the hobby world. I know a lot of you guys are investors.

It should only effect the hobby world for the ones that are speculators. The investors, the ones in it for the long haul, shouldn't be effected much. For the investors those losses were probably just coming out of some fairly large gains in the months before. For most investors their disposable income is not really effected.

[Ben Rhimene]

I was kinda wondering if I should buy in right now, lol. People have told me they lost thousands over night.

Not yet. This is a market slump caused by 2 events...drop in demand for everything except toilet paper, sanitizer, and masks. That is the impact of coronavirus. That is short-lived and predictable (at a global level). Took China 2 months to get through before production ramped up again...we aren't as authoritarian so figure 3-4 months. This will be a 1-2 quarter recession.

Second is Russian v Saudi pissing match. Russia wants to crush Permian producers while Saudi flexes muscles to bring Russia to cooperate with OPEC. Both countries fucking over their economies cuz oil so low. Storage issues coming with more supply and decreasing demand for oil due to coronavirus lockdowns. They will both blink, but not for 1-3 months.

So market slumps on this perfect storm.

If you buy now you will get a good price. But you will also be holding onto stocks that won't move up for a few months. My suggestion is to wait for 1 or both of the above to stabilize, then buy. No sense watching stock languish for a few months when price will be similar in May.

As for losing thousands overnight, that is only if they sold their positions. Sure, my 401-k cratered, but it will bounce back and value returns. Be careful to not listen to whiney babies who are talking about paper losses only...the only losses individuals care about are realized losses when they sell a holding.

I invest hundreds of millions daily...just none of it my own. C'est la vie...

[Brooke Wilde]

Best time to buy is when prices are low!

Exactly.

It's really not that hard at all.

You can even buy fake accounts with fake money while you're learning the ins & outs.

Just take the plunge & stay committed for the long haul!

[chloevankatie]

Exactly.

It's really not that hard at all.

You can even buy fake accounts with fake money while you're learning the ins & outs.

Just take the plunge & stay committed for the long haul!

I did study Warren Buffett's investment strategy with long term investing. The valuation of stocks is the part I had trouble with. I did some practice on paper, and half the stocks I picked did well and the other half didn't. So at 50/50 I might as well be flipping a coin, lol. I feel like I need to work on understanding valuation.

[chloevankatie]

Fear, panic, and uncertainty. The market will recover. Anyone investing in stocks must be willing and able to ride out the volatility, and stay for the long run. The market will reward you for it.

FWIW, I managed a $500 million portfolio for a national charity for 12 years, including the 2008 crash. There was panic aplenty back then, and those who acted on that panic and left the market not only bought high and sold low, but they missed the recovery.

So is it just panic right now? Are they afraid of a recession or depression? How long do you think this panic is gonna hold out? I remember 2008 very well. It sucked cause I used to be able to buy property with low documentation, but not anymore. :(

[Lovinglifeinaustin]

So is it just panic right now? Are they afraid of a recession or depression? How long do you think this panic is gonna hold out? I remember 2008 very well. It sucked cause I used to be able to buy property with low documentation, but not anymore. :(

I think it’s a panic, not over a recession or depression, but over the uncertainty that the coronavirus might have on the economy. Nobody knows how long it will last, and there’s no point in trying to guess and time the market. You are only investing if you are willing to stay for the long ride - 10 or more years. If you’re trying to time the market and move in and out, you’re not investing, you’re speculating, and the odds of winning that game aren’t good.

[orbitboy]

Yeah, I'm kinda curious how the coronavirus is going to affect hobbyist & provider activities, too.

[chloevankatie]

I think it’s a panic, not over a recession or depression, but over the uncertainty that the coronavirus might have on the economy. Nobody knows how long it will last, and there’s no point in trying to guess and time the market. You are only investing if you are willing to stay for the long ride - 10 or more years. If you’re trying to time the market and move in and out, you’re not investing, you’re speculating, and the odds of winning that game aren’t good.

Couldn't the virus cause a depression?

[chloevankatie]

Let's meet....... I used to be an Investor for 2 years at Paine Webber. I can tell you all about it over wine.

Dude, I would love to find a mentor to teach me about stocks. I have taught myself about real estate investing and its part of my plan for world domination to invest in properties, but the stock market is harder to understand. I have tried reading books, listening to podcasts, etc., but it seems complicated to me.

[Dorthy Monroe]

I am not totally financially illiterate, but I am not extremely educated about the stock market either.

Can someone please explain to me like I am 5 years old what exactly is happening to the markets and possible long term ramifications?

I am curious about the where the economy is currently going and I know we have some folks here that are well educated that can explain and/or direct me to resources.

Download this app called fantasy finance it will teach you everything you need to know