The market

hoffse · January 2016

Has anybody else been watching this? It's crazy. We're probably going to end today with the worst 2-week run since 2008.

And crude just dropped below $30/barrel. That hasn't happened in more than a decade.

Crazy.

I'm gearing up to buy low, but timing it is giving me some heartburn.

jessica490 · January 2016

This is total craziness!

MommyLiberty5013 · January 2016

It's crazy. China is the problem. They are out of control.

vlagrl29 · January 2016

no I had no idea - now I'm depressed and don't want to look but probably will ;(

vlagrl29 · January 2016

ugh I've lost 8k ….crying over here. This is why its hard for me to imagine having enough money to retire when you see it go down so much.

als1982 · January 2016

It's been painful to watch our accounts decrease by thousands of dollars, but we certainly understand that there are going to be lots of dips in the market over our lifetimes. If anything we're glad to be increasing our contributions in the current climate!

hoffse · January 2016

als1982 said:

It's been painful to watch our accounts decrease by thousands of dollars, but we certainly understand that there are going to be lots of dips in the market over our lifetimes. If anything we're glad to be increasing our contributions in the current climate!

This is what I'm holding onto. Buy low.

We've lost about $10K the last two weeks. Oh well, it will come back!

vlagrl29 · January 2016

hoffse said:

als1982 said:

It's been painful to watch our accounts decrease by thousands of dollars, but we certainly understand that there are going to be lots of dips in the market over our lifetimes. If anything we're glad to be increasing our contributions in the current climate!

This is what I'm holding onto. Buy low.

We've lost about $10K the last two weeks. Oh well, it will come back!

I would just love to get over the 200k mark in my IRA but it keeps seeming so far away with these drops

smerka · January 2016

Look at the percentages instead of the numbers. I'm down 5.5% for 2016, but only 1% for the last 365 days

hoffse · January 2016

smerka said:

Look at the percentages instead of the numbers. I'm down 5.5% for 2016, but only 1% for the last 365 days

I hear ya. The markets haven't closed today though. It's pretty bad.

vlagrl29 · January 2016

can someone explain in a nutshell why this happened. Is it cause of china again? There won't be another 2008 recession again?

hoffse · January 2016

vlagrl29 said:

can someone explain in a nutshell why this happened. Is it cause of china again? There won't be another 2008 recession again?

It's a combination of China and oil. Oil was probably the biggest driver today. Crude has gotten so cheap that the only countries who can make money at that price are in the middle east. That hamstrings every other oil-producing country (including the US).

I don't think it will be another 2008. The market hasn't really corrected itself in many years, and it's overdue. We're about back to where we were in August. I just wish it wouldn't happen so quickly....

Xstatic3333 · January 2016

Yeah, it's crazy but I'm just staying the course. All of our investments are super long term, so buying low is happy news. I'm only worried if it hits a spot where people get laid off and have a hard time finding work.

It is crazy how low gas prices, which are desirable on the surface for many, may be an overall evil if they help tank the economy.

If I could go back in time I'd take Econ in college so I understand how all this works.

hoffse · January 2016

Xstatic3333 said:

Yeah, it's crazy but I'm just staying the course. All of our investments are super long term, so buying low is happy news. I'm only worried if it hits a spot where people get laid off and have a hard time finding work. It is crazy how low gas prices, which are desirable on the surface for many, may be an overall evil if they help tank the economy. If I could go back in time I'd take Econ in college so I understand how all this works.

You can pretty much track geopolitical swings based entirely on the price of crude. There are so many industries that rely on it, and many of the countries that produce it generally don't get along with one another. Imagine the US, Saudi Arabia, China, Venezuela, and Russia all sitting around a conference table and being BFF's. Never going to happen.

Xstatic3333 · January 2016

hoffse said:

Xstatic3333 said:

Yeah, it's crazy but I'm just staying the course. All of our investments are super long term, so buying low is happy news. I'm only worried if it hits a spot where people get laid off and have a hard time finding work.

It is crazy how low gas prices, which are desirable on the surface for many, may be an overall evil if they help tank the economy.

If I could go back in time I'd take Econ in college so I understand how all this works.

You can pretty much track geopolitical swings based entirely on the price of crude. There are so many industries that rely on it, and many of the countries that produce it generally don't get along with one another. Imagine the US, Saudi Arabia, China, Venezuela, and Russia all sitting around a conference table and being BFF's. Never going to happen.

That makes sense. What I don't get (not asking you guys to be Google, although if anyone wants to chime in feel free) is why OPEC is flooding the market right now. How does it benefit them to drive prices down?

hoffse · January 2016

Xstatic3333 said:

Xstatic3333 said:

Yeah, it's crazy but I'm just staying the course. All of our investments are super long term, so buying low is happy news. I'm only worried if it hits a spot where people get laid off and have a hard time finding work. It is crazy how low gas prices, which are desirable on the surface for many, may be an overall evil if they help tank the economy. If I could go back in time I'd take Econ in college so I understand how all this works.

You can pretty much track geopolitical swings based entirely on the price of crude. There are so many industries that rely on it, and many of the countries that produce it generally don't get along with one another. Imagine the US, Saudi Arabia, China, Venezuela, and Russia all sitting around a conference table and being BFF's. Never going to happen.
That makes sense. What I don't get (not asking you guys to be Google, although if anyone wants to chime in feel free) is why OPEC is flooding the market right now. How does it benefit them to drive prices down?

**SIB**

That's the political part. Some of these countries have so much in reserve that they can keep flooding the market to eat up a larger market share, even if they are currently losing money by doing it. Over time that puts oil production in other countries (even certain OPEC countries) in serious financial straits.

Xstatic3333 · January 2016

hoffse said:

Xstatic3333 said:

Xstatic3333 said:

Yeah, it's crazy but I'm just staying the course. All of our investments are super long term, so buying low is happy news. I'm only worried if it hits a spot where people get laid off and have a hard time finding work.

It is crazy how low gas prices, which are desirable on the surface for many, may be an overall evil if they help tank the economy.

If I could go back in time I'd take Econ in college so I understand how all this works.

You can pretty much track geopolitical swings based entirely on the price of crude. There are so many industries that rely on it, and many of the countries that produce it generally don't get along with one another. Imagine the US, Saudi Arabia, China, Venezuela, and Russia all sitting around a conference table and being BFF's. Never going to happen.

That makes sense. What I don't get (not asking you guys to be Google, although if anyone wants to chime in feel free) is why OPEC is flooding the market right now. How does it benefit them to drive prices down?

**SIB**

That's the political part. Some of these countries have so much in reserve that they can keep flooding the market to eat up a larger market share, even if they are currently losing money by doing it. Over time that puts oil production in other countries (even certain OPEC countries) in serious financial straits.

Gotcha. That makes sense. I know ISIS controls some wells, wonder how that's affecting all this.

CuriousKiddosMama · January 2016

I'm not even going to look. It will come back.
Also, anybody think the Walmart announcement is playing a part? That's a lot of stores to close!

MommyLiberty5013 · January 2016

I haven't lost any money. But I divested from stocks (except one) and mutual funds in July. I'm in gold ETFs for the near future - I don't think this "correction" is done. Just my accounts though, not DH's. I shudder to think of his.

cbee817 · January 2016

I'm trying not to pay too much attention to it- just keep doing what we do for now. We weren't going to do Roth contributions until July and October (we usually do $3,000 each then $2,500 each).. not sure if I should change that up or just stick with the plan since we are hoping to have our upstairs bathroom remodeled in March.

jtmh2012 · January 2016

CuriousKiddosMama said:

I'm not even going to look. It will come back. Also, anybody think the Walmart announcement is playing a part? That's a lot of stores to close!

While Wal-mart is closing 269 stores, 102 of them were smaller Wal-mart Express stores, they're also looking to open at least 350 stores. So the headlines are somewhat misleading.

jtmh2012 · January 2016

hoffse said:

Has anybody else been watching this? It's crazy. We're probably going to end today with the worst 2-week run since 2008.

I'm gearing up to buy low, but timing it is giving me some heartburn.

I'm getting ready to dump a lot in for both of our IRAs and a past year contribution. So while I'm having heartache over the drop, at least it is a good buying opportunity.

JoanE2012 · January 2016

We generally dollar cost average our investments and we rebalance on a regular basis, so we don't worry so much about wild swings. If we have extra money, we will often try to put it into the markets at lower points. But overall, we don't worry about it - we have time on our side.

CuriousKiddosMama · January 2016

jtmh2012 said:

CuriousKiddosMama said:

I'm not even going to look. It will come back.
Also, anybody think the Walmart announcement is playing a part? That's a lot of stores to close!

While Wal-mart is closing 269 stores, 102 of them were smaller Wal-mart Express stores, they're also looking to open at least 350 stores. So the headlines are somewhat misleading.

Yeah, that is definitely not something I caught from the little bit of the article I read. Interesting.

vlagrl29 · January 2016

I called fidelity today to see if I could get some advise on how to make mine more balanced. 1/2 of my retirement is managed by them and I manage the other 1/2. I have some cash in there that I want to invest when the market is low. I got 1 guy telling me its better to have them manage 100% of my funds while I "learn" - that's not why I called. I ended up making an appt for next week to talk to an investor with fidelity.

vlagrl29 · January 2016

MommyLiberty5013 said:

I haven't lost any money. But I divested from stocks (except one) and mutual funds in July. I'm in gold ETFs for the near future - I don't think this "correction" is done. Just my accounts though, not DH's. I shudder to think of his.

what's the rate of return on that? I had all of mine in a bond back in 08 before the crash and I was so scared it took me 3 years to reinvest anything.

JoanE2012 · January 2016

vlagrl29 said:

MommyLiberty5013 said:

I haven't lost any money. But I divested from stocks (except one) and mutual funds in July. I'm in gold ETFs for the near future - I don't think this "correction" is done. Just my accounts though, not DH's. I shudder to think of his.

what's the rate of return on that? I had all of mine in a bond back in 08 before the crash and I was so scared it took me 3 years to reinvest anything.

I know several people that panicked in '08, moved to bonds (and sold fairly low, not at the high!) and by the time they got back in, it was high again! They would've been better off just letting it sit. It's hard watching it go down, but I think it's best to not react to the market other than throwing a little extra if you can, especially if you're not close to retirement.

MommyLiberty5013 · January 2016

JoanE2012 said:

vlagrl29 said:

MommyLiberty5013 said:

I haven't lost any money. But I divested from stocks (except one) and mutual funds in July. I'm in gold ETFs for the near future - I don't think this "correction" is done. Just my accounts though, not DH's. I shudder to think of his.

what's the rate of return on that? I had all of mine in a bond back in 08 before the crash and I was so scared it took me 3 years to reinvest anything.

I know several people that panicked in '08, moved to bonds (and sold fairly low, not at the high!) and by the time they got back in, it was high again! They would've been better off just letting it sit. It's hard watching it go down, but I think it's best to not react to the market other than throwing a little extra if you can, especially if you're not close to retirement.

I'm not in bonds. And, I don't think the market is done falling.

JoanE2012 · January 2016

MommyLiberty5013 said:

JoanE2012 said:

vlagrl29 said:

MommyLiberty5013 said:

I haven't lost any money. But I divested from stocks (except one) and mutual funds in July. I'm in gold ETFs for the near future - I don't think this "correction" is done. Just my accounts though, not DH's. I shudder to think of his.

what's the rate of return on that? I had all of mine in a bond back in 08 before the crash and I was so scared it took me 3 years to reinvest anything.

I know several people that panicked in '08, moved to bonds (and sold fairly low, not at the high!) and by the time they got back in, it was high again! They would've been better off just letting it sit. It's hard watching it go down, but I think it's best to not react to the market other than throwing a little extra if you can, especially if you're not close to retirement.

I'm not in bonds. And, I don't think the market is done falling.

Sorry for the confusion, I wasn't responding to your post - it was vlagrl29. And even with that, it was more a general comment of other people that I saw who panicked, acted and lost. Honestly, I hope the market keeps falling - I have a bonus coming in about 6 weeks and I'd love to buy more low!

jtmh2012 · January 2016

CuriousKiddosMama said:

CuriousKiddosMama said:

I'm not even going to look. It will come back. Also, anybody think the Walmart announcement is playing a part? That's a lot of stores to close!

While Wal-mart is closing 269 stores, 102 of them were smaller Wal-mart Express stores, they're also looking to open at least 350 stores. So the headlines are somewhat misleading.
Yeah, that is definitely not something I caught from the little bit of the article I read. Interesting.

I had to piece it together from several articles, so don't feel bad.

vlagrl29 · January 2016

JoanE2012 said:

MommyLiberty5013 said:

JoanE2012 said:

vlagrl29 said:

MommyLiberty5013 said:

I haven't lost any money. But I divested from stocks (except one) and mutual funds in July. I'm in gold ETFs for the near future - I don't think this "correction" is done. Just my accounts though, not DH's. I shudder to think of his.

what's the rate of return on that? I had all of mine in a bond back in 08 before the crash and I was so scared it took me 3 years to reinvest anything.

I know several people that panicked in '08, moved to bonds (and sold fairly low, not at the high!) and by the time they got back in, it was high again! They would've been better off just letting it sit. It's hard watching it go down, but I think it's best to not react to the market other than throwing a little extra if you can, especially if you're not close to retirement.

I'm not in bonds. And, I don't think the market is done falling.

Sorry for the confusion, I wasn't responding to your post - it was vlagrl29. And even with that, it was more a general comment of other people that I saw who panicked, acted and lost. Honestly, I hope the market keeps falling - I have a bonus coming in about 6 weeks and I'd love to buy more low!

I actually made the switch to the bond the weekend before the big tank happened. I don't regret it but wish I hadn't been so scared to buy when things were much lower. All this talk of the market is making me want to get a financial planner

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