I'm a just going to hang onto my money. After giving it careful consideration, the risk is just more than I can stand, considering I am retired now, and living on a fixed income.

quote:

Originally posted by Warhorse:
I'm a just going to hang onto my money. After giving it careful consideration, the risk is just more than I can stand, considering I am retired now, and living on a fixed income.

that's just it

every individual has to honestly assess his own risk level -- and be able to sleep at night with the decision

can't fault your decision given the predicted near-term volatility

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Rebalancing bonds to market shares is what I'm doing.

I still like diversification. Some stocks, some bonds, some cash, some REIT, some actual RE.

Invest in the diaper and formula companies. People are off work with no recreation due to things being closed down. I foresee a surge in babies in the next 9-12 months.

The Fed just lowered interest rates to zero.

quote:

Originally posted by kkina:
The Fed just lowered interest rates to zero.

time to strap in

going to be a wild ride

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quote:

Originally posted by Sig209:

quote:

Originally posted by kkina:
The Fed just lowered interest rates to zero.

time to strap in

going to be a wild ride

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What are the implications?

^^Lowering interest rates makes loans more attractive, and encourages businesses to increase productivity (I just took a new business loan this week). The hope is to offset the depressive effects the coronavirus has on the general economy.

Secondly, an emergency move like this sends a message that the federal government is doing everything it can to deal with the economic issues that a crisis like this has. The hope there is that the stock market will begin to stabilize.

Tomorrow's trading day should be interesting (I just heard a rumor that futures are down, suggesting a down day for the market).

quote:

Originally posted by chongosuerte:

quote:

Originally posted by Sig209:

quote:

Originally posted by kkina:
The Fed just lowered interest rates to zero.

time to strap in

going to be a wild ride

---------------------------------------

What are the implications?

basically the Fed has now gone 'all in' - nothing else they can do now that the rate is zero. they have used all their ammo to slide lock...

and it COULD have a 'FEAR effect' on the market -- ie 'what does the Fed know that the rest of us DON'T know??'

but in the short / medium term it makes loans VERY affordable to shore up businesses and can 'stimulate' buying on the personal level and capital purchases on the corporate level (ie expensive equipment / capital improvement)

say you're the cruise line -- no cruises for the next 90 days -- at least now you can theoretically extend your line of credit at super low rates to keep the ships from rusting, engines running, employees paid, etc it's a credit life line basically for 1000s of businesses

absolutely kills the concept of personal saving though because interest rates on savings accounts, MMFs, CDs etc are likely to fall from the pitiful current levels...

but it could also scare the hell out of the stock market because it's considered quite a drastic measure ... iirc the last time this happened was during the epic financial crisis of 2009

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quote:

Originally posted by chongosuerte:

quote:

Originally posted by Sig209:

quote:

Originally posted by kkina:
The Fed just lowered interest rates to zero.

time to strap in

going to be a wild ride

---------------------------------------

What are the implications?

1) with 99+% of Americans uninfected, they whipped out their biggest guns, and used up the ammo, leading to implication #2....

2) they, the all-knowing, are freaked out

I really really hope this does what they are hoping for.

quote:

Originally posted by joel9507:

quote:

Originally posted by chongosuerte:

quote:

Originally posted by Sig209:

quote:

Originally posted by kkina:
The Fed just lowered interest rates to zero.

time to strap in

going to be a wild ride

---------------------------------------

What are the implications?

1) with 99+% of Americans uninfected, they whipped out their biggest guns, and used up the ammo, leading to implication #2....

2) they, the all-knowing, are freaked out

I really really hope this does what they are hoping for.

Dow futures implying an open -200. I dont think that was what they were hoping for. I can envision getting to Dow 17000 and S&P 2000 in the coming months.

And I can see dow 33000 in 2022. Don't go wobbly.

I read that the Dow futures hit "limit down" at 5% (down 1000 points) and triggered a halt about an hour ago.

I guess that's the response to the fed running to slidelock by cutting rates to zero. The fed decided to "stimulate" the markets, and succeeded in causing another panic. It shit the bed.

quote:

Originally posted by Ken226:
I read that the Dow futures hit "limit down" at 5% (down 1000 points) and triggered a halt about an hour ago.

I guess that's the response to the fed running to slidelock by cutting rates to zero. The fed decided to "stimulate" the markets, and succeeded in causing another panic. It shit the bed.

YUP, the market doesn't care about the interest rates, in fact the 2 drops in a week or so simply freaked the market out. The speed that it's multiplying (the virus) is scaring everyone. BUT the market is seeing so many different sectors being completely shut down.....so many different sectors are either going to report very little earnings, and most will have losses.

So I can leave my retirement in the “2025” mutual fund that follows the market or I can move it to a money market fund that is basically a savings account at 0%.

Not a withdrawal, it is a transfer. Only caveat is anything I pull transfer out of, I can’t transfer back into for a minimum of thirty days.

I am already down 18% from my February balance. Let it ride or put the money in “time out” until this shit settles down?

Planning to retire in 2023, but for that happen this needs to be back where we were last month by the end of the year or so

quote:

Originally posted by Ken226:
I read that the Dow futures hit "limit down" at 5% (down 1000 points) and triggered a halt about an hour ago.

I guess that's the response to the fed running to slidelock by cutting rates to zero. The fed decided to "stimulate" the markets, and succeeded in causing another panic. It shit the bed.

Now at about 9% down on the futures. This is the problem with "index" investing - its all algorithms and momentum trading for the institutions, but Mainstreet USA has no idea what they own, so they can only see the dollar amount flying around each day.

quote:

Originally posted by 911Boss:
So I can leave my retirement in the “2025” mutual fund that follows the market or I can move it to a money market fund that is basically a savings account at 0%.

Not a withdrawal, it is a transfer. Only caveat is anything I pull transfer out of, I can’t transfer back into for a minimum of thirty days.

I am already down 18% from my February balance. Let it ride or put the money in “time out” until this shit settles down?

Planning to retire in 2023, but for that happen this needs to be back where we were last month by the end of the year or so

A 2025 target date fund probably had a significant fixed income portion, but how that piece fits into your total picture is a more complicated question. If you have an adviser, you may want to speak with them about the implications of making any moves.

Example: if you have a significant pension and Social Security to cover most or all of your monthly expenses, a drop in the market may not matter as much to your scenario.

quote:

Originally posted by 911Boss:
So I can leave my retirement in the “2025” mutual fund that follows the market or I can move it to a money market fund that is basically a savings account at 0%.

Not a withdrawal, it is a transfer. Only caveat is anything I pull transfer out of, I can’t transfer back into for a minimum of thirty days.

I am already down 18% from my February balance. Let it ride or put the money in “time out” until this shit settles down?

Planning to retire in 2023, but for that happen this needs to be back where we were last month by the end of the year or so

At this point, I would leave it alone, market should recover in 5 years. Moving it to a money market will simply solidify your losses and will never regain what you just lost, the fund will. The fund still owns the same number of shares of stock (and other investments) when the economy rebounds so will they.

quote:

Originally posted by jimmy123x:

quote:

Originally posted by 911Boss:
So I can leave my retirement in the “2025” mutual fund that follows the market or I can move it to a money market fund that is basically a savings account at 0%.

Not a withdrawal, it is a transfer. Only caveat is anything I pull transfer out of, I can’t transfer back into for a minimum of thirty days.

I am already down 18% from my February balance. Let it ride or put the money in “time out” until this shit settles down?

Planning to retire in 2023, but for that happen this needs to be back where we were last month by the end of the year or so

At this point, I would leave it alone, market should recover in 5 years. Moving it to a money market will simply solidify your losses and will never regain what you just lost, the fund will. The fund still owns the same number of shares of stock (and other investments) when the economy rebounds so will they.

I agree but it depends on what you have the stomach for. It can and may continue to go down but ultimately I believe it will rebound. The only people who lose money in the stock market are the ones that sell low. You move that money and you lock in that loss.