Anybody buying on this downturn?

[disneysteve]

Buy low, sell high. On March 11, 2020 when the DJIA was 23,500 I sold (sell high). On March 16, 2020 when the DJIA was 21,300 I bought more (buy low).

Ah, that's very different than what you seemed to be saying earlier. It sounded like you were planning to stay out for a while. You market-timed and won, so congrats on that. Of course, market timing is a crapshoot but it worked this time.

[Singuy]

What he was trying to say earlier was BS then. Can't have it both ways. He is buying while telling others to jump off the sinking ship.

[TexasHusker]

Agreed with Singuy & DS... I still believe wholeheartedly in the American (and global) economy. That's really the bottom line here -- confidence in the overall economy &a willingness to see it through.

with everything heading toward lockdown, there is no economy. How many days can an economy be locked down? How many days can businesses, big and small, go with zero revenue? How many people can go two weeks with zero pay? Without being able to buy gas or groceries? Or their heart medicine?

Only businesses with hearty cash reserves are going to survive this. Barring some unexpected remarkably good news in the next few days, we are heading for a “new normal” in this country that will be profound. It could take decades for things like the stock market to recover. Let’s think through this and not kid ourselves.

[TexasHusker]

What he was trying to say earlier was BS then. Can't have it both ways. He is buying while telling others to jump off the sinking ship.

Bear markets wash out a whole crop of “never buy stocks again” investors. The last one did that for me and I went a different direction investment wise.

[rennigade]

with everything heading toward lockdown, there is no economy. How many days can an economy be locked down? How many days can businesses, big and small, go with zero revenue? How many people can go two weeks with zero pay? Without being able to buy gas or groceries? Or their heart medicine?

Only businesses with hearty cash reserves are going to survive this. Barring some unexpected remarkably good news in the next few days, we are heading for a “new normal” in this country that will be profound. It could take decades for things like the stock market to recover. Let’s think through this and not kid ourselves.

You mean, you should think this through and not kid yourself? I have a feeling your post will not age well. Ill be sure to remind you when that time comes

[rennigade]

Bear markets wash out a whole crop of “never buy stocks again” investors. The last one did that for me and I went a different direction investment wise.

Yet here you are talking about stocks every other post. If you're out of the game, stay out of the game. You've done well with real estate. That seems to be your bread and butter. Save the doom and gloom for somewhere else. Most of us arent drinking that kool aid. I will say though, im glad people are finally taking this serious. Even my idiot FIL finally gets it...and he's as conservative as they come.

[james.hendrickson]

I'm with Singuy here - I'm seeing some stocks are trading for less than their book value. Keep your eyes peeled guys, there are going to be some fortunes made if you can keep your head.

[Singuy]

Yeah don't forget most companies planned for any impending recession because the bull market lasted so long. Even Tesla with it's live on the edge philosophy raised capital before the stock market crash. Companies, especially those that are big names are not stupid.

[TexasHusker]

You mean, you should think this through and not kid yourself? I have a feeling your post will not age well. Ill be sure to remind you when that time comes

let's not get personal here. I am a business owner and face massive uncertainties just like folks in the stock market and possibly much more. I have a $20K payroll to meet every two weeks, plus about $12K in rents, etc., etc. And I actually purchased a few stocks on Friday.

[james.hendrickson]

let's not get personal here. I am a business owner and face massive uncertainties just like folks in the stock market and possibly much more. I have a $20K payroll to meet every two weeks, plus about $12K in rents, etc., etc. And I actually purchased a few stocks on Friday.

No seriously, there are a lot of good companies trading at less than book value. If you can lock up your holdings until all this blows over, there is money to be made.

[disneysteve]

with everything heading toward lockdown, there is no economy. How many days can an economy be locked down? How many days can businesses, big and small, go with zero revenue? How many people can go two weeks with zero pay? Without being able to buy gas or groceries? Or their heart medicine?

Only businesses with hearty cash reserves are going to survive this. Barring some unexpected remarkably good news in the next few days, we are heading for a “new normal” in this country that will be profound. It could take decades for things like the stock market to recover. Let’s think through this and not kid ourselves.

I think you're absolutely right. Businesses are going to fail, small businesses and very likely some big ones too. A lot of businesses have been built on debt so when income slows or stops, the house comes crashing down. This will be a huge Dave Ramsey "I told you so" moment. A company like Apple that has $100 billion in cash reserves will be just fine but many other companies won't survive.

However, that also creates opportunity. Sure, some individual airlines might go under, but other stronger airlines will buy up their routes and planes. People aren't going to stop flying, or eating in restaurants, or staying in hotels, or going to bars. A billion dollar cruise ship isn't going to be sold off for scrap. Somebody will buy it at a steep discount if the company goes under, rebrand it, and put it back in service.

There is going to be a lot of pain but it will end eventually and things will get back on track. I think in hindsight, we will see this period as a time when incredible investment opportunities presented themselves to those with the cahones to dive in. I would be really really careful about buying individual stocks because you don't want to buy into that company that doesn't make it through, but mutual funds and ETFs that spread your risk are probably the way to go. Yes, I did buy AAL but then I turned my attention to JETS for just that reason.

[rennigade]

My guess is, we're going to see a turnaround in the market when the news outlets start reporting that the virus is slowing, very few new cases, etc etc. At that point, people will start doing things again, traveling again, spending money again. Until then, I dont see how the market wouldnt keep going down. The feds threw some hail marys at the economy and it didnt do a single thing. Could be as long as a couple months.

Then again, im spouting bro science, so take that for what it is. I def think there is going to be a lot of buying opportunities in the next weeks.

[bjl584]

My guess is, we're going to see a turnaround in the market when the news outlets start reporting that the virus is slowing, very few new cases, etc etc. At that point, people will start doing things again, traveling again, spending money again. Until then, I dont see how the market wouldnt keep going down. The feds threw some hail marys at the economy and it didnt do a single thing. Could be as long as a couple months.

Then again, im spouting bro science, so take that for what it is. I def think there is going to be a lot of buying opportunities in the next weeks.

I read something similar.
The markets will recover once the virus peeks and new cases start to trail off.
But, not sure how much it will recover or how long it will take.
What is happening now is going to haunt us for quite a while

[safari]

I liquidated all my stock holdings today, including 401K. Normally I would never advocate selling on the dip, but this is a very unique situation, unlike anything that ever happened before. The whole world is shutting down for a few months, so the stock market is going to continue plunging, regardless of what the government tries to do. I will re-enter the market once the spread of the virus starts slowing down, but I am not willing to ride this down wave.

[Singuy]

I liquidated all my stock holdings today, including 401K. Normally I would never advocate selling on the dip, but this is a very unique situation, unlike anything that ever happened before. The whole world is shutting down for a few months, so the stock market is going to continue plunging, regardless of what the government tries to do. I will re-enter the market once the spread of the virus starts slowing down, but I am not willing to ride this down wave.

People should continue to share their liquidating story. The more of these we get, the more likely we can see when the market bottoms out.

Bought 4k worth of CCL plus some DIS.

Everyone becomes a market timer when conventional wisdom tell you not to. People really need to stop caring about $$$ so much. If you do, then just go sit on cash. In the markets, the more you care, the less you make.