Dow Futures -1041 after Fed cut to zero .. 0 rate priced in
- Thread starter cyber888
- Start date
I don't think it was meant to be calming, or that the Fed did it to help the stock market as much as the bond market. They saw the 'meh' reaction from the first rate cut and were aware this would be a big nothingburger. However, they also knew they would have to get to zero quickly, and that it would lower the cost of issuing debt while the fountains of money are flowing out. The dollar is strong and they are still in a good position to sell that debt overseas, even at zero interest. I'm more interested to see if they would dare cut to negative short-term rates.
People are still reeling from the last 10 days of the market, and there is lots more yet to come. The hard part for investors is that we haven't seen anything like this before; it is all coinciding with an oil war; and there will be big winners and losers when the 'recovery' is done.
hopeisconstant
Dryer sheet wannabe
In-kind Ira to Roth transfer time
This will pass stocks will go back up.
Now is around time for those of you wanting to transfer funds from your traditional IRAs to a Roth to do it with your stocks that have fallen dramatically in value. You just transfer say, some of your Apple stock, directly onto the Roth. You pick and choose. You will be taxed on the value of the stock at time of transfer. When the stock goes back up you will not be taxed on the gain and you will now have it in the Roth.
Of course, the market may go down some more, who knows, but this is a strategy you should start seriously thinking about right now.
I’d appreciate anyone else in the know chiming in. Am I current on my thinking? I’m pretty sure I am.
This will pass stocks will go back up.
Now is around time for those of you wanting to transfer funds from your traditional IRAs to a Roth to do it with your stocks that have fallen dramatically in value. You just transfer say, some of your Apple stock, directly onto the Roth. You pick and choose. You will be taxed on the value of the stock at time of transfer. When the stock goes back up you will not be taxed on the gain and you will now have it in the Roth.
Of course, the market may go down some more, who knows, but this is a strategy you should start seriously thinking about right now.
I’d appreciate anyone else in the know chiming in. Am I current on my thinking? I’m pretty sure I am.
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March 22 - Dow is down another -900 points to 18100+. The longer Congress argues about the stimulus package .. seems like Dow will hit 14000-15000. If they reach an agreement by tomorrow or Tuesday ... the downtrend could slow or reverse a little.
But March 15-16, we had 9,500 cases .. now 33,000 cases of Coronavirus
But March 15-16, we had 9,500 cases .. now 33,000 cases of Coronavirus
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BeachOrCity
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you literally think a congressional rescue package is what is needed to save stocks? Government owning stocks is communism by the way......
Congress can (and should) provide stimulus. But direct support of stocks
Fun fact: if the S&P 500 hits 1700 that will be a 50% decline. Yet the PE multiple based on 2019 earnings will simply be at a long term average.
you literally think a congressional rescue package is what is needed to save stocks? Government owning stocks is communism by the way......
Congress can (and should) provide stimulus. But direct support of stocks
Fun fact: if the S&P 500 hits 1700 that will be a 50% decline. Yet the PE multiple based on 2019 earnings will simply be at a long term average.
No I was referring to the stimulus in general .. like giving people cash and help to small business. .. not direct support to stocks.
you literally think a congressional rescue package is what is needed to save stocks? Government owning stocks is communism by the way......
Congress can (and should) provide stimulus. But direct support of stocks
Fun fact: if the S&P 500 hits 1700 that will be a 50% decline. Yet the PE multiple based on 2019 earnings will simply be at a long term average.
You have no idea what communism is .. the US govt. already bought equities back in 2008. It’s been done.
aja8888
Moderator Emeritus
Gov owned GM stock after the BK. And, gov refused to honor the bond holders of GM. The bad guys are already practicing.
a weekend of nothing but listening to the increasingly bad numbers vis.a vis. the coronavirus and I expect a bloodletting tomorrow...but that's all short term...sooner or later this thing is going to work itself out, the world will return to the normal ebb and flow of up markets, down markets, and things will revert to the mean. Which BTW, we are probably closer to the mean now than we've been in quite some time.
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