What the heck else would your retirement be tied to?

You can thank communist China.

The market is nothing like it was in 1929. Thousands of computer generated trades per second. A month from now it will be corona what, and the Dow will be on it’s way to 30,000.

If I’m wrong the Dems will be celebrating.

Squash, I don't doubt that the DOW will hit 30,000 despite the virus. The market is capable of functioning and gaining regardless of the flow of goods. NOT making a political statement here. NOT at all. Remember, Trump wants to lower the value of the dollar. He wants lower rates. He wants QE. He's getting the lower rates. He's getting QE through "not qe" repo injections. Rate cuts are easily seen in the money you deposit into a savings account. It gains little in interest. Wasn't true 40-50 years ago. You could then retire on your savings, and live off the interest. Many did. That was a retirement account. Now, money sitting in a bank, is money that is losing value. If you leave it there, it won't buy as much 20 years from now, because the interest won't keep pace with inflation. Who wants savings bonds, CD's, etc. Nobody who wants to make money. Nobody who needs their money to keep pace with the increase of prices so that they have something to live on later in life. Believe me, I am one happy camper to see my wife's 401K over doubled during the last few years. I invest in other areas to cover a couple extra bases in case something doesn't turn out as planned. So, while the DOW will likely hit 30,000 and above, the price we pay for goods will likewise rise. The continued lowering of interest rates will push more money out of savings into the market, thus driving the prices in the market up. The Boomer Generation's retirement is tied-up in the market. They are continuing to retire in high numbers, so more money is on it's way. I fully expect the market to rebound. I'm just not sure there's any cushion left after the next rate cut though. History is worth remembering. I think when Trump was running and he said, "it's a big ole bubble", he was right. I think he's pushing the fed, to push China, who is using it's position of having 3-4 of the world's largest banks and communist party control in it's industry to manipulate it's markets. The virus could be the greatest thing for the USA, if it's brought under control. It will have exposed the fatal flaw of dependence upon another country. It should permanently weaken China's industrial position, and thus weaken it's attempt to gain at least bi-lateral control of the world's economy. We need the Chinese currency to trade on a more even platform with the dollar. We aren't gonna get ahead by relying on someone else to do it. We, need to do what made America great to start with and that is to excel in providing for our needs and in providing those goods to other countries in need. I support Trump's idea that we need to make America great again. I think he spoke openly and truthfully in his campaign about the markets and economic position of the US. We are in an economic war, with China, with Russia, and no telling who else. Our US dollars are part of the weapon used in those wars. Those dollars are a target to our enemies. After 2008, we didn't change much other than lifting some restrictions that sort-of capped how far out in the water we could go with debt. This is the biggest internal problem I see. Debt continues to be given to those who don't pay their debts. This could be a problem down the road. And it's this that I think is the biggest danger to the market. The fed bought up a lot of bad debt in order to kick-start the economy, and the plan was to re-balance the books by raising interest rates and what happened? Oh, they tried it. Bought brought the whole house down. Why? Cause people that were paying their bills on home loans and car loans and refinance loans, suddenly had their bills increase. Fed backs off, markets recover, and have been on a pretty steady rise ever since. Although, the fed has repeatedly lowered rates, increased it's balance sheet by buying more bad debt, and even recently warned that if another recession were to hit, they likely wouldn't be able to lower rates enough for markets to recover. I been paying a little attention. I even heard the part where they were saying, we might not be able to save ya'll. I'm not so much a believer in "History Repeat Itself". I'm more a believer in, humans make the same mistakes. I'm not wishing any bad on the markets or the people invested in them. I pity those that don't have a back-up plan. Some of the same people on this site who will tell you that you can't trust or rely on your government, will be the first who expect the government to save them. Invest wisely! Good luck!

A few facts

Over a 38-day trading period during the height of the SARS virus back in 2003, the S&P 500 index fell by 12.8%. During the Zika virus, which occurred at the end of 2015 and into 2016 the market fell by 12.9%. There are other examples, but they all passed, and the market recovered and hit new highs.

How has your life changed since the virus has been exposed? When unemployment starts going up over 3-4 months then you can become a little concerned - the market just ran up a steep hill and now it slid down and is taking a breather. As soon as it catches its breath it will be moving up the hill again

They couldn't in 1929, we were still on a gold standard.

If anyone wants to know why the market has always "gone up" these two links tell it all, at least to the degree they have.

link

link

In 1930 the federal debt was 18% of GDP. This year it will end up being approximately 108%. That's not adding in the artificial money creation that was and is a product of QE 1,2,3 and the QE that is going as as we breathe although they claim it's not easing but it's the same program.

Unless you have sold holdings yesterday, you have lost nothing...……………

If we drop another 8% this week then there might be some good buys but don't sell to buy.

I am waiting for White to start yelling "BUY".

That was yesterday's program. There could be more ahead though.

Bought a bit yesterday, near the close. Us and Canadian banks. Still sitting on some dry powder for now. old243

Airlines may be a good look at this point..... be aware also, this slide may not be over, wait for Fridays sell off before you buy.

Wait for it...it ain't done dropping.

But I don't follow the market so take that as a guess that we haven't seen the worst of this virus yet.

No offence, but I'm glad I didn't adhere to this. I'm certain it's generally good advice. However we were over due for a correction this Virus is just an excuse. I dumped all profitable stocks on Tuesday. I'll look again at them on Friday afternoon / Monday morning and see what I will pick back up at a reduced price increasing my shareholdings or searching out other good buys. A week long correction should about due, if it extends into next week, we have issues. Look for the S&P to test 3070 to prove it's settled. It's currently 3040(ish).

I think there is a real good chance we will see 300 on SPY within a week. Don't forget Super Tuesday is March 3. Also, early next week ISM will report numbers from Feb. If it's below 50... we could see more downside

cash isn't a bad position at the moment.....

I agree with your opinion.

True. Your SQ is a monster today

yeah, there is always one that doesn't comply with the plan... SQ is it... against all odds, it's going up.. I will have to wait on that one for a pull back. Dammit.... look at Mesa and CCXI.

At least MESA has earnings.

Best change the name of this thread to Dow 4000 drop and still going to go.