Dqotd

[frayne]

With all of the uncertainty wouldn't it be prudent to just shutdown the markets until the medical community gets its arms around the situation ?

 

[ERD50]

Don't like it. I think that just adds to the uncertainty. And might feed the doom-and-gloomers (OMG, it must be REALLY BAD if they shut the markets, this is historic! Oh-Noes!) .

And what about people who might need to sell from time-to-time to fund their living expenses? They would be hurt.

Nope. Don't like. No hows, no ways. Let it play out.

I noticed a sig on this forum the other day, a Peter Lynch quote? Something like ' more damage has been done preparing for downturns than the downturn itself has caused? Something like that?

OK, found one ref here:

https://seekingalpha.com/article/39...orrection-even-starts-advice-from-peter-lynch

"Far more money has been lost by investors preparing for corrections or trying to anticipate corrections than has been lost in corrections themselves." - Peter Lynch

-ERD50

 

[OldShooter]

Doesn't matter whether it is a good idea or not. There is too much money involved in the investment industry = lots of people would fight such an idea. Illiquidity for legitimate needs, lost salaries due to layoffs, inability to hedge by real commodity creators and consumers, ... Plus, as @ERD50 points out, certain investor psychology impacts but of what kind?

 

[latexman]

In the "Money talks, and BS walks" spectrum, me thinks this topic would be placed on the BS side of center.

 

[RetireBy90]

What would you gain by shutting markets ? CBOE has moved to all electronic for a period of time, Several markets are all electronic also. With these there is no gathering of people greater than X. I could see those with a floor trading move more or all to electronic as good in that it could reduce chance of transmission. I think closures should be carefully considered and implemented only when a clear advantage. In this case potentially limiting the virus transmission. Just me $0.02

 

[Clone]

Shutting down the markets seems to me to be similar to the 'Whip Inflation Now' approach. You can't quarantine water that is trying to reach it's appropriate level. I think that the market circuit breakers did allow things to settle a bit. Eventually, some of the emotional panic selling will settle, and a new normal will be established. It will be interesting when the quarterly reports come in- some retailers will be bonkers because of panic buying, followed by low sales because everyone has enough TP for a year. Others will be down, but counting on pent-up demand to recover.

Dumb comment that I heard yesterday- I need to stock up on toilet paper because it is all made in China!