The Dow Dives 750 Points Because a Recession Signal Is Flashing Red

[Bigun]

I'd put them in that order, with the Fed as the worst, worse than the other two combined (which is significant in my book, because I think those two play off each other so powerfully).

Folks can argue about income vs consumption vs tariffs vs blahblahblah.  At some point, we need to fund the monster.  But debasing the currency, as a mandate, is just outright theft.

Like I said, it's really hard to know but you're damned right about the symbiotic relationship between them.

[Sanguine]

Something I learnt about wimmins a while ago.  If you say "Calm down," she'll calm right down....

Oh, yes, that always works.

[Bigun]

Oh, yes, that always works.

 

[corbe]

    /JS

[EdJames]

I have a good financial adviser and I have a mix of investments.  Problem is that I'm 66 and thanks to some bad advice, bad decisions, an initial period in my working life where I had no control over my pension (my employer invested in mutual funds that went nowhere) and Clinton's supposed great economy in the 1990s and that I had to leave the workforce much sooner than I anticipated (disability) -- I don't have a whole lot of money to play with.  So yes, even at my age I still have to have some growth in order to be able to afford to live a while longer. 

Well, I am glad that you do have a good financial advisor now (I hope that his fiduciary duty is solely to you).  And I have sympathy for your past plight.  (Aggressively) averaging out (the opposite of averaging in) of equities may be something for you two to discuss at this point in time.  You may decide that it is a good time to lock in the (hopefully bountiful) gains that you have accrued over the past several years, and have that capital available to re-enter when prices become more favorable (great buying opportunities).  I truly wish you the best in this endeavor.

But you and so many others are just not getting it.  I don't care how financially secure you think you are.  You aren't.  And much of that lack of security is the result of a president who is playing games with our future.  He can blame the fed chairman and a whole bunch of other people all he wants, but a collapse is coming and when it does, it will be mostly traced back to him and his whims.

OK, to be fair it would take hours to unpack all that you have here....  and I doubt that you are all that interested in my version of things... Just a few quick comments:
- no one can legitimately make statements as broad as some of what you have above.
- as mentioned above in this thread, the creation of the Fed in 1913 is the seminal event in starting the process to whatever, and whenever, "crash" may come...
- an overdue stock market correction is not a "crash"
- the creation of the Fed ushered in centralized fractional-reserve banking and a "fiat" currency, meaning that the value of the currency is no longer moored to anything of actual value (e.g., gold), but rather declared via fiat, and able to be created (out of nothing) in an unlimited fashion.  You can certainly see where this eventually leads.
- much of what is happening in the political world now is merely "noise" in the larger scheme of things.
- and whether or not you wish to give him credit (I understand that it is a firm "NO" for you!), Trump is actually trying to unwind decades of trade and monetary policy that have destroyed our "main street" economy to the favor of global interests and investment bankers...
- He may succeed against long odds, or he may fail, that is yet to be determined...
- Trump has done a lot to be critical of, but even though you won't recognize it at this point in time, he may end up succeeding to your benefit in this area over time...

[Sanguine]

    /JS

 

[Gefn]

Beware of walking under tall buildings in manhattan

[Applewood]

FWIW, the total Dow loss today is 800.49. 

And @EdJames

Thank you for your response.  I will be talking to my adviser on Friday. 

And I appreciate you not being an ass toward me.  We might not agree about Trump and where this country is headed, but there is such a thing as disagreeing without being disagreeable.  Glad you understand that.

[corbe]

    @EdJames as you @Applewood are two characters I really appreciate around here.

[Cyber Liberty]

FWIW, the total Dow loss today is 800.49. 

And @EdJames

Thank you for your response.  I will be talking to my adviser on Friday. 

And I appreciate you not being an ass toward me.  We might not agree about Trump and where this country is headed, but there is such a thing as disagreeing without being disagreeable.  Glad you understand that.

For my part, I wish you the best of luck also.  I'd hate to be facing that at 66. 

[Bigun]

FWIW, the total Dow loss today is 800.49. 

And @EdJames

Thank you for your response.  I will be talking to my adviser on Friday. 

And I appreciate you not being an ass toward me.  We might not agree about Trump and where this country is headed, but there is such a thing as disagreeing without being disagreeable.  Glad you understand that.

I sincerely hope that I am not among those who have been an a$$ toward you @Applewood but if I have, let me take this occasion to apologize.

[EdJames]

FWIW, the total Dow loss today is 800.49. 

And @EdJames

Thank you for your response.  I will be talking to my adviser on Friday. 

And I appreciate you not being an ass toward me.  We might not agree about Trump and where this country is headed, but there is such a thing as disagreeing without being disagreeable.  Glad you understand that.

 

As @corbe says, we are all together on this 3rd Rock, err, Stone, from the Sun!

[EdJames]

    @EdJames as you @Applewood are two characters I really appreciate around here.

I’m sure that Apple and I are like everyone else, we can’t get enough of our @corbe !

 

[Wingnut]

As @corbe says, we are all together on this 3rd Rock, err, Stone, from the Sun!

Rock.  It is a damn rock.  corbe is stone(d)

[EdJames]

Rock.  It is a damn rock.  corbe is stone(d)

But, but, ....  he had a YouTube video and everything....

 

[Wingnut]

But, but, ....  he had a YouTube video and everything....

 

The man is an enigma. 

[Fishrrman]

The Dow dropped 3% today.
That ain't much, when you think about it.

I don't care any more.
I'm pretty much "all cash" these days, and that goes up a good bit every month.

What happens on Wall Street doesn't necessarily reflect how things are going in the heartland. As a [retired] blue-collar deplorable, I don't see much correlation between the well-being of brokers and investors vis-a-vis that of working-class and middle-class folks.

A thought, don't mean nuthin'...
If the economy "goes bad" and the democrat-communists win in 2020...
... then we'll get to see what happens when the economy REALLY goes "bad"...

[IsailedawayfromFR]

I have a good financial adviser and I have a mix of investments.  Problem is that I'm 66 and thanks to some bad advice, bad decisions, an initial period in my working life where I had no control over my pension (my employer invested in mutual funds that went nowhere) and Clinton's supposed great economy in the 1990s and that I had to leave the workforce much sooner than I anticipated (disability) -- I don't have a whole lot of money to play with.  So yes, even at my age I still have to have some growth in order to be able to afford to live a while longer. 

But you and so many others are just not getting it.  I don't care how financially secure you think you are.  You aren't.  And much of that lack of security is the result of a president who is playing games with our future.  He can blame the fed chairman and a whole bunch of other people all he wants, but a collapse is coming and when it does, it will be mostly traced back to him and his whims.

Sometimes I wish there were still more defined benefit programs out there rather than mostly defined contribution plans.  The former mostly take the risk out of your retirement financial future, but come at a price as they are rarely lucrative compared to investing successfully.  Call it peace of mind.  I decided to cash in my peace of mind and have not regretted it.  But that's me.

And I do hope things settle down for you and am sorry about the disability.  Keeping a glass half full rather than half empty and a long-term outlook is the most I can offer.

[Applewood]

    @EdJames as you @Applewood are two characters I really appreciate around here.

@corbe   Thanks.  This place wouldn't be the same without you. 

[Applewood]

I sincerely hope that I am not among those who have been an a$$ toward you @Applewood but if I have, let me take this occasion to apologize.

No need for an apology.   

[Bigun]

No need for an apology.   

 

[libertybele]

FWIW, the total Dow loss today is 800.49. 

And @EdJames

Thank you for your response.  I will be talking to my adviser on Friday. 

And I appreciate you not being an ass toward me.  We might not agree about Trump and where this country is headed, but there is such a thing as disagreeing without being disagreeable.  Glad you understand that.

Certainly talk to your advisor.  For what its worth; investment advice from a very well known investment advisor that doesn't work on commission in our area:

www.reznywealth.com/media/investment-economic-strategy-updateaugust-13-2019

And this:

https://www.marketwatch.com/story/forget-the-yield-curve-us-consumers-will-offset-a-recession-says-economist-2019-08-15?mod=mw_theo_homepage

[Applewood]

@libertybele

Thank you for your help.  My advisor (actually, I have a team) does not work on a commission.  The team provides me with daily info on the markets, keeps a close watch on what I have and provides regular updates.  The guy I'm talking to tomorrow always tells me to "stop worrying."  He will probably say that when I talk to him tomorrow.  LOL

I think the MarketWatch article is the first one I've read that says a recession could be offset.  Everything I've been reading over the last several months say we are headed for a recession.  who to believe?  I don't know.

***

FWIW:  As of a few minutes ago, the Dow was up a modest 48.95.

[dfwgator]

The Media has gotten their marching orders from the DNC - Start talking down the economy.    So predictable.

[Cyber Liberty]

The Media has gotten their marching orders from the DNC - Start talking down the economy.    So predictable.

It's predictable because it has worked in the past.  As Cora the Coffee Lady once said, "When you find something that works, you stick with it!"