Poll: Who is selling today’s (March 2nd) “dead cat bounce “

[RioIndy]

I've been staying the course and just re-balancing a bit from my least-affected holdings to my most-affected holdings. Should give me some minor gains in the long run.

[wmc1000]

Bought more yesterday.

[karen1972]

I did some tax loss harvesting to offset the additional Roth conversion I also did yesterday. This freed up more cash for future opportunities. At the beginning of the year I was 70/30 tax deferred/tax free and as of this morning I'm 60/40 @ 9% fed rate which I'm good with.

[Born2Fish]

Quote:

Originally Posted by wmc1000 Bought more yesterday.

+1. Added SPY, BX to maintain my AA after drop.

[Freedom56]

I bought short term notes yesterday and have bids in for several more today. I expect my money market fund yields will plummet over the next two weeks and need to move quickly to replace my money market holdings.

[BeachOrCity]

I plan to hold off rebalancing until April. I don’t see the market surging to its previous highs any time soon and the risk of another 10-20% decline is imho quite real.
If we don’t have widespread transmission in the USA and Europe is not shut down I think it will be realistic to get back in fully and I am confident it won’t be any higher than prices in mid February.

[JustCurious]

Is the dead cat still bouncing?

[GoBugGo]

Quote:

Originally Posted by wmc1000 Bought more yesterday.

Ditto...so much value in the markets these days. Even with the "bounce" many compnaies remain very attractive.

[BeachOrCity]

I think the value “right now” is more in specific companies than the market as a whole.

[HadEnuff]

staying the course, because I don't know if it's a "dead cat bounce", or "an angry cat who was taking a nap and is now going to scratch someone's eyes out"...
Now, if I just only knew.....

[chrisaukcam]

Did some buying with some of the mad money in my 401k

[Dtail]

Quote:

Originally Posted by BeachOrCity I plan to hold off rebalancing until April. I don’t see the market surging to its previous highs any time soon and the risk of another 10-20% decline is imho quite real. If we don’t have widespread transmission in the USA and Europe is not shut down I think it will be realistic to get back in fully and I am confident it won’t be any higher than prices in mid February.

+1
Looks like just a dead cat bounce yesterday.

[audreyh1]

Quote:

Originally Posted by JustCurious Is the dead cat still bouncing?

I expect we’ll see many of those type bounces after big drop days.

[audreyh1]

Quote:

Originally Posted by BeachOrCity I think the value “right now” is more in specific companies than the market as a whole.

Agreed!

[audreyh1]

Quote:

Originally Posted by Dtail +1 Looks like just a dead cat bounce yesterday.

That to me looked like trying to promise the market candy to cheer it up. Are we now in a give me candy or I’m going to have a big tantrum mode?

[Dtail]

Quote:

Originally Posted by audreyh1 That to me looked like trying to promise the market candy to cheer it up. Are we now in a give me candy or I’m going to have a big tantrum mode?

Yeah something like that.
2 of the largest upswing % days were in the fall of 2008. This appears similar, although the situation is not as dire as 2008.

[BeachOrCity]

Quote:

Originally Posted by Dtail Yeah something like that. 2 of the largest upswing % days were in the fall of 2008. This appears similar, although the situation is not as dire as 2008.

As I try to think thru this in terms of longer term risk, I believe corporate debt levels are the biggest issue. Many companies in the US (and world I assume) are very highly leveraged given how good the economy is (cheap rates for debt to buy back stock for example).

The risk is people staying home can kind of have a cascading effect on multiple industries and can these companies service their debt if this goes on for long? Its a question I don't know the answer to, but that IMHO is the longer term risk to the economy and markets.

Its anyones guess, but if we end up like "italy" for example, I think there will be numerous corporate defaults and its wait and see if gov't comes to the rescue.

The only risk avoidance here is to check your bond allocation and move it where there is little to no BBB, and preferably gov't debt. If you haven't already.

[audreyh1]

I agree that the high level of corporate debt is a serious concern.

Quote:

Corporations around the world have begun issuing profit warnings and curbing activities, as more than 96,500 people have been infected by the coronavirus globally and over 3,300 people have died, according to a Reuters tally. The U.S. death toll stands at 11, in Washington state and in California. New York’s governor said on Thursday that 22 people in New York have the virus. Junk bonds are pricing in a higher level of default and spreads over safer Treasuries have widened to 475 basis points from 403 at the start of February, using the ICE/BofA high yield index. February’s widening was the largest the index has seen since December 2018.

https://www.reuters.com/article/us-h...-idUSKBN20S2U0

[pb4uski]

I'll probably sell some in the next day or two to fund topping off a 3.5% CD I bought last year that I found out I can add to as longs as I do so before 4/30. When I first bought it I put in an amount so at the end of the 5 year term it would be at the FDIC limit with interest... I'll now top if up to the FDIC limit and periodically skim off the interest to bring the principal back down to the FDIC limit.

[Born2Fish]

Quote:

Originally Posted by BeachOrCity I think the value “right now” is more in specific companies than the market as a whole.

That may be so. Wish I was smart enough to know which to buy though.

This latest round of volatility from CoV business impact has made me re-think the individual stock approach. Once the dust settles I'm going to gradually migrate my "hand picked" stock portfolio into low fee ETFs.

(I got kicked pretty hard by oil.)