Nice little dip in the market

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2/5/2018 1:41 PM

Been wondering when a good correction was going to happen. Needs to be at least 10% to really do some good. Be ready to catch the falling knife.

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2/5/2018 1:49 PM

borg wrote:

Been wondering when a good correction was going to happen. Needs to be at least 10% to really do some good. Be ready to catch the falling knife.

the drop today is not in the top 25 of all time, be interesting to see what happens tomorrow,

with low interest rates still seemingly here for a while, not sure what will happen,

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2/5/2018 2:20 PM

Borg, what's your take on the housing market? I'm expecting another (smaller) correction sometime soon. All my real estate friends are saying this is the year to sell, sell, sell, so it makes me think they know something I don't.

I want to buy something soon but I'm going to time the market this time around and be smarter than I was in 2004.

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Braaapin' aint easy.

2/5/2018 3:57 PM

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2/5/2018 6:13 PM

Falcon wrote:

Borg, what's your take on the housing market? I'm expecting another (smaller) correction sometime soon. All my real estate friends are saying this is the year to sell, sell, sell, so it makes me think they know something I don't.

I want to buy something soon but I'm going to time the market this time around and be smarter than I was in 2004.

Prices are stupid high here in the Long Beach area. Just like before the crash. The difference is that mortgage qualification since then has been really tough. So I don't see a bunch of defaults coming. It's such a local thing though. I would be careful about taking advice from anybody in real estate unless they truly are your friend and are being totally candid about what they see out there. I have one golfing buddy in the real estate business. According to him, it's always a great time to buy and a great time to sell. I wouldn't believe a word he said if he swore he was lying.
Sorry, got nothing for you on the real estate market.

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2/6/2018 4:22 AM

$4 Trillion in equity loss in 8 days is a pretty decent correction. Hopefully it stabilizes rather than being the being a full on bursting of the bubble

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2/6/2018 5:15 AM

APLMAN99 wrote:

$4 Trillion in equity loss in 8 days is a pretty decent correction. Hopefully it stabilizes rather than being the being a full on bursting of the bubble

This actually is a market bubble as compared to 2007 where S&P 500 P/E ratio was just a bit over historical averages. That was a credit bubble that pulled the market down. The S&P P/E now, as of Friday was about 25. That's about 20% over the historical average of 18 to 19. That's a market bubble. There is plenty of downside room.

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2/6/2018 6:04 AM


I pulled a good bit out of my investment account maybe a month ago.
The way the market was shooting up and up, got me thinking, this can't go on much longer.

Now, wait till it settles down, and take that trip back down to the space coast. Do some surf fishing for fish,
and some bottom fishin for a place to winter in.

Heck, bike week and the week after, kill 3 birds with one stone,
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2/6/2018 7:05 AM

Very happy to see the drop, for me it is opportunity not a threat...I'll be buying....and I'll be at bike week!!

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2/6/2018 10:52 AM

There is no reason for the market to be as high as it is. I think it's funny that Hannity is blaming Obama for this market crash.

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2/6/2018 10:59 AM

Like Nsync said... BUY, BUY, BUY....

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The message posted above is most likely my opinion and shouldn't be taken as fact....

2/6/2018 12:14 PM

#ToldYaSo

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The message posted above is most likely my opinion and shouldn't be taken as fact....

2/6/2018 1:12 PM

Why would (some of you) people be relishing in a market downturn? Is it because of Trump? Do you not have retirement accounts?

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2/6/2018 1:25 PM

Falcon wrote:

Borg, what's your take on the housing market? I'm expecting another (smaller) correction sometime soon. All my real estate friends are saying this is the year to sell, sell, sell, so it makes me think they know something I don't.

I want to buy something soon but I'm going to time the market this time around and be smarter than I was in 2004.

borg wrote:

Prices are stupid high here in the Long Beach area. Just like before the crash. The difference is that mortgage qualification since then has been really tough. So I don't see a bunch of defaults coming. It's such a local thing though. I would be careful about taking advice from anybody in real estate unless they truly are your friend and are being totally candid about what they see out there. I have one golfing buddy in the real estate business. According to him, it's always a great time to buy and a great time to sell. I wouldn't believe a word he said if he swore he was lying.
Sorry, got nothing for you on the real estate market.

The agent in question is my best friend's mom and I don't have anything to sell, so I believe her when she says now is a seller's market. Another agent my buddy knows echoes the sentiment. They feel like that have to make hay while the sun shines, indicating that they don't think this market will continue.

I keep hearing ads on the radio urging people to cash out their equity, which really reminds me of the years leading up to the big crash. Guess we'll wait and see.

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Braaapin' aint easy.

2/6/2018 1:53 PM

Falcon wrote:

The agent in question is my best friend's mom and I don't have anything to sell, so I believe her when she says now is a seller's market. Another agent my buddy knows echoes the sentiment. They feel like that have to make hay while the sun shines, indicating that they don't think this market will continue.

I keep hearing ads on the radio urging people to cash out their equity, which really reminds me of the years leading up to the big crash. Guess we'll wait and see.

I believe it. I'm in southern California so prices are already insane, but houses are not lasting on the market at all and are going for above asking price. One agent laughed at us when we put in an offer for asking price on a house that had been on the market last year for a year and didn't sell, but it lasted about three days when it was just relisted.

We're stashing our money away for now waiting for the next crash.

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Instagram: vanillaice782
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2/6/2018 6:24 PM

71Fish wrote:

Why would (some of you) people be relishing in a market downturn? Is it because of Trump? Do you not have retirement accounts?

Market corrections are actually healthy in the long term. Weak hands sell and strong hands buy. It's sets a support point that's fairly reliable if you happen to be a market timer. If you're not a player and you have a 401k just keep feeding it as usual. Nothing here to see really.

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2/6/2018 6:47 PM

borg wrote:

This actually is a market bubble as compared to 2007 where S&P 500 P/E ratio was just a bit over historical averages. That was a credit bubble that pulled the market down. The S&P P/E now, as of Friday was about 25. That's about 20% over the historical average of 18 to 19. That's a market bubble. There is plenty of downside room.

So it's safe to say if one was about to pump some money into an index fund, to wait and let things settle?

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2/6/2018 7:15 PM

71Fish wrote:

Why would (some of you) people be relishing in a market downturn? Is it because of Trump? Do you not have retirement accounts?

For those of us with retirement accounts and 15 or so years til retirement, a rising market isn't really all that great. It just reduces the number of income producing vehicles that we can afford to buy!

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2/6/2018 7:16 PM

APLMAN99 wrote:

$4 Trillion in equity loss in 8 days is a pretty decent correction. Hopefully it stabilizes rather than being the being a full on bursting of the bubble

borg wrote:

This actually is a market bubble as compared to 2007 where S&P 500 P/E ratio was just a bit over historical averages. That was a credit bubble that pulled the market down. The S&P P/E now, as of Friday was about 25. That's about 20% over the historical average of 18 to 19. That's a market bubble. There is plenty of downside room.

Ebs wrote:

So it's safe to say if one was about to pump some money into an index fund, to wait and let things settle?

It's an impossible question to answer. The truth is, nobody knows where and when the bottom is. The last correction in 2015 lasted 6 months before the bull resumed. The one before that in 2011 lasted about an hour and the market went right back up.

Look up "dollar cost averaging". It's a good plan for us mortals. Especially if you are still in your earning years and not retired.

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2/6/2018 8:16 PM

Thank God the stock market is turning down. We almost had too much winning folks

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2/6/2018 10:21 PM

What stocks are you guys looking at? I just set up my IRA around New year's so I don't have a lot to play with, but found some cheaper ones to get in on. I bought some of Aveo pharmaceutical recently. I love my pharm stocks.

I can't afford it, but Wynn resorts took a huge dump over the past couple days and I don't see why they wouldn't bounce back.

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Instagram: vanillaice782
Amateur helmet painter

2/7/2018 8:51 AM

I had a retirement account from 1990 - 96. I left that job and didn't touch the 401k. It was worth about $18,000 at the time. More than once I thought about cashing it in to pay off some bills. That would net approx. $10,000 after taxes and penalties. I left it and pretty much forgot about it.
Checked 2 weeks ago and it's sitting at $83,000. So this is a good lesson for you young-uns, leave that 401k alone. You'll thank yourself when you reach retirement age.

People in their 30's excited about their 401k rocking out the past year, doesn't mean jack squat. It will go up and down many times by the time you start cashing in.

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2/7/2018 6:11 PM

Dirty Britches wrote:

I had a retirement account from 1990 - 96. I left that job and didn't touch the 401k. It was worth about $18,000 at the time. More than once I thought about cashing it in to pay off some bills. That would net approx. $10,000 after taxes and penalties. I left it and pretty much forgot about it.
Checked 2 weeks ago and it's sitting at $83,000. So this is a good lesson for you young-uns, leave that 401k alone. You'll thank yourself when you reach retirement age.

People in their 30's excited about their 401k rocking out the past year, doesn't mean jack squat. It will go up and down many times by the time you start cashing in.

I hope they are listening.

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2/7/2018 7:03 PM

Dirty Britches wrote:

I had a retirement account from 1990 - 96. I left that job and didn't touch the 401k. It was worth about $18,000 at the time. More than once I thought about cashing it in to pay off some bills. That would net approx. $10,000 after taxes and penalties. I left it and pretty much forgot about it.
Checked 2 weeks ago and it's sitting at $83,000. So this is a good lesson for you young-uns, leave that 401k alone. You'll thank yourself when you reach retirement age.

People in their 30's excited about their 401k rocking out the past year, doesn't mean jack squat. It will go up and down many times by the time you start cashing in.

The most important thing people should know is not to touch the 401k when the market dips or even if it crashes. eventually, the value will recover, but if you move investments around, they have to be sold, which realizes losses, which one almost never recovers. In fact, back in 2008 when the market was in the toilet, I maxed out my 401k contributions...was like buying stocks half or more off...a fire sale if you will. I made out like a bandit when the market recovered, but people who moved their money into guaranteed returns or other low risk strategies lost many 10's of thousands of dollars. This is why at least a basic education in finance should be mandatory in school.

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2/8/2018 11:42 AM

Yes, basic finance should be mandatory in high school.
Simple shit. My sister in law had a 5 yr loan on a car. She was down to 2 years left and got a bank to refi for 5 years again! no shit. She was so excited saying she's saving tons of money because her payments went down. uh...but you added 3 years to your loan. Now you're paying for a total of 8 years instead of the original 5.
I was met with blank stare....but...but....my payment went down, I'm saving money. smh

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2/8/2018 12:02 PM

As a dude in his early 30's, with zero college or formal financial education, I love hearing others that are wiser talk about this stuff... food for my little brain.. Thanks all for sharing some knowledge and tidbits on money topics.

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2/8/2018 12:15 PM
Edited Date/Time: 2/8/2018 12:22 PM

Still taking a crap! Time to put more money in I guess. smile

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2/8/2018 2:16 PM

XXVoid MainXX wrote:

Still taking a crap! Time to put more money in I guess. smile

That's what I thought last night... I just gave 1/3 of it (my new investments) away... lol

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The message posted above is most likely my opinion and shouldn't be taken as fact....

2/8/2018 2:31 PM

Crazy!

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2/8/2018 2:38 PM

XXVoid MainXX wrote:

Crazy!

It's only like 3 beers at a supercross... wink

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The message posted above is most likely my opinion and shouldn't be taken as fact....