COViD 19- economic impacts now

Status
Not open for further replies.
M

moneymaker

Recycles dryer sheets
Joined
Mar 13, 2013
Messages
106
Economy had been rocking- no secret. cOVID 19 was and is a health crisis. But as of recently and the exploitation and continued major coverage from the media, this is now definitely an economic pandemic. Our entire system, events, travel, etc is being changed in a flash, canceled, suspended, etc.

We are 37 and we moved 50% of my wife’s 401k to cash. I wasn’t in agreement and it went against everything I’ve ever thought about investing but hey, it was a compromise with her.

After watching the news and so much of what I just spoke of bejng cancelled etc., I realy believe this could go much further down and have lasting effects in the economy for the next 12 months or longer.

I know st our ages, history and my experience says just to stay tight but this is different.

Let’s hear it!
 
skipro33 said:
If this all shakes out in 12 months, then what's the worry? Any one of us, I'm sure, has means of financial funding for a year surely. I have 30% of my financial worth in guaranteed savings in my IRA. It's my 'emergency' money, but I'm seriously considering getting it back into the game when this 'crisis' begins to ease. I know it's timing, but with markets down 30% and still falling, there's a huge opportunity looming on the horizon.
Click to expand...

Basically my point. Im still 100% equities in my 401k and now 50% in my wife’s. But this def hasn’t seen the bottom after today. I am glad I’ll have some money to put to work.
 
You'll notice some posts are gone. Knock off the politics or be prepared for involuntary quarantine.
 
Gumby said:
No, Connecticut. On the shore of Long Island Sound.
Click to expand...
On the shore? I was expecting 100' down.[emoji23]

OP, you know what you think you know; stay the course.

As far as how long it lasts? Your guess is as good as mine. I'm glad to see areas taking the precautions. I believe, based on data from S. Korea and China, if we do everything properly the thing can die out quickly.
 
moneymaker said:
Economy had been rocking- no secret. cOVID 19 was and is a health crisis. But as of recently and the exploitation and continued major coverage from the media, this is now definitely an economic pandemic. Our entire system, events, travel, etc is being changed in a flash, canceled, suspended, etc.

We are 37 and we moved 50% of my wife’s 401k to cash. I wasn’t in agreement and it went against everything I’ve ever thought about investing but hey, it was a compromise with her.

After watching the news and so much of what I just spoke of bejng cancelled etc., I realy believe this could go much further down and have lasting effects in the economy for the next 12 months or longer.

I know st our ages, history and my experience says just to stay tight but this is different.

Let’s hear it!
Click to expand...


Everyone always says "this is different", but unless you have a crystal ball, how will you know when to use that cash to get back into the market? Were you planning on retiring in a year or two? I've probably got 4-5 years left, so I'm sticking with my AA -- rebalancing will ensure that I'm taking advantage of both the drops and the recovery.
 
All I know is that I have been declared the monetary Chubby Checker of our town......"How low can you go?"
 
Thing is - if you get back in at any point below when you sold you're ahead. The trick is choosing when to sell not when to buy back in.
 
The real economic impacts right now are being felt by those in the service economy whose jobs have been cut back drastically or eliminated for the foreseeable future. Think about the vendors, ushers, parking lot attendants, etc. for sporting and musical events. The people who set up/tear down booths at convention centers. Restaurant and bar workers facing empty tables. Musicians whose tours/festivals/shows have been cancelled. Most of those folks have very little financial cushion as it is.

We just got off the phone with DD who has several friends directly impacted. She encouraged us to patronize restaurants that are open and to tip heavily (even if getting to-go instead of dining in). I think those of us that can do so should consider it.

I'll also be heavily patronizing our farmers' market tomorrow morning assuming it's still a go (don't know why not - it's outdoors so safer than the grocery store IMHO).
 
MBAustin said:
The real economic impacts right now are being felt by those in the service economy whose jobs have been cut back drastically or eliminated for the foreseeable future. Think about the vendors, ushers, parking lot attendants, etc. for sporting and musical events. The people who set up/tear down booths at convention centers. Restaurant and bar workers facing empty tables. Musicians whose tours/festivals/shows have been cancelled. Most of those folks have very little financial cushion as it is.

We just got off the phone with DD who has several friends directly impacted. She encouraged us to patronize restaurants that are open and to tip heavily (even if getting to-go instead of dining in). I think those of us that can do so should consider it.

I'll also be heavily patronizing our farmers' market tomorrow morning assuming it's still a go (don't know why not - it's outdoors so safer than the grocery store IMHO).
Click to expand...
Recd a note from our farmers market that it will not open Tmrw. But they were buying all the fruit veg from the vendors planning on selling and donating to the food bank.
 
My DIL works in a casino and he is in tourism too. They are worried because 2 years ago she had brain surgery out of state and was off of work a long time so their savings was spent. If needed they can move in with us. Locally most events are being canceled.
 
Kid's spring semester moves online after Spring Break this week.

I assume he grabs his stuff from the apartment and comes home.

And he's not looking for housing in the fall yet...might really be tough for landlords in college towns starting this summer...
 
For the remainder of March, there are no public events over 100, no schools/colleges open, some government closing, no concerts, no sports, no festivals, or parades, and no sporting events to watch on TV.
 
DD's cruise she and her Hubby booked last year to celebrate their second anniversary was just cancelled. The cruise was scheduled for 3/22.
 
moneymaker said:
....

After watching the news and so much of what I just spoke of bejng cancelled etc., I really believe this could go much further down and have lasting effects in the economy for the next 12 months or longer.

I know st our ages, history and my experience says just to stay tight but this is different.

Let’s hear it!
Click to expand...

Sure, that could be. But that doesn't mean you can make market predictions about selling now and buying back later at a lower price.

Just think about it - if you think the market is going lower, are you alone? If you are alone, why? So if the consensus is that the market is going lower, then all those who believe that would get out, why hang on? So if they have all gotten out, how can it go lower? There's no one left that will sell, they already did.

IOW, the market anticipates, it doesn't follow. On average, any move you try to make is already too late to do any good.

Stay the course, rebalance if your AA gets out of whack. Enjoy life.

-ERD50
 
Teacher Terry said:
My DIL works in a casino and he is in tourism too. They are worried because 2 years ago she had brain surgery out of state and was off of work a long time so their savings was spent. If needed they can move in with us. Locally most events are being canceled.
Click to expand...

Here they just closed all schools for 2 week, and the Casino's, and all sorts of events, even the toll road booths will be empty (just drive without paying and pay online later) or have a pass.
The tollway will trip up a lot of tourists, I hope they leave the gates open or there will be many accidents of people backing up to get back on the freeway.
 
MBAustin said:
We just got off the phone with DD who has several friends directly impacted. She encouraged us to patronize restaurants that are open and to tip heavily (even if getting to-go instead of dining in). I think those of us that can do so should consider it.
Click to expand...

The young wife just expressed the same thing to me as we were driving home this evening. We are blessed to have a steady income in the face of this crash; we should tip heavily to help out those who don't.
 
I expect that my bands will lose some gigs...not a big deal to any of us as we all either have jobs or are retired and don't rely on the money.

But a lot of people will suffer in the bar, restaurant, travel, sports, and entertainment industries as attendance drops and events get cancelled.
 
pb4uski said:
Facinating interview with Barry Diller on Face the Nation this morning... no chance that economy will bounce back this summer in his opinion... and expecting widespread bankruptcies.

https://www.cbsnews.com/news/transcript-barry-diller-on-face-the-nation-april-26-2020/
Click to expand...



He’s in a position to understand what’s happening as well as anyone can be, so I tend to accept his arguments, up until the end when he speculates that this economic fallout will start to end by Labor Day. From what I hear infectious disease experts saying in the news, that’s not necessarily so.
 
Status
Not open for further replies.

Latest posts

Back
Top Bottom