Yep, a 6% off sale. I'm waiting until the mark down is 25% or more.The stock market is having a sale
*Investors Blog*
- Thread starter Warstud
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Costs will skyrocket. People will suffer.
Many have already substantial 401K losses.
Maybe. Paying the piper finally?
Really? Compared to other market drops, which did happen.
Cool down.
This is good in a way, a very few select individuals will learn that their losses never existed in real money.
Unrealized gains they lost. The only reason we are doing well is printing and spending as well as a 36 trillion dollar national debt.
Substantial 401(k) losses compared with what?
The high three months ago?
Going back any farther, they should have substantial gains, unless they have invested very poorly.
Stocks fluctuate. You know that. You own Tesla.
Will they? I'm still confused. Are tariffs a great way to fill our coffers (paraphrasing - Those beautiful tariffs will generate so much money we won't know what to do with it) or are they penalties used to force manufacturing to the US? Both of these roads lead to higher prices. The free market as already determined the most efficient and therefore cheapest places to manufacture goods and and supply services. These tariffs are a form of government regulation which leads to less efficient production of goods and services and higher prices.
BTW...I know what tariffs do..it's a rhetorical question.
The universal problem with the market - if things stop going down soon, it's just a blip. If things continue on their current coarse for weeks to months, then it's a problem. No one knows where we are in the downward trajectory of the past month.
I am talking about people who may not have time to recover.
Isn't the average 401K like $170K but the median is about $61K? I don't really know the numbers, but I fear for those in lower financial positions.
You are right; the last years have been super for many indices.
Astro, I know you are a generous person. I wish we didn't need people like you. I fear seeing things worse.
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I think its a political question.
So, based upon the median average 401k it doesn't matter if the market goes up or down. I know I'm oversimplifying, but using the 4% rule with the median you are looking at around $200 a month. 100% more or 100% less isn't going to change anyone's standard of living.
Then they should not be in the market with something they cannot accept declines with.
My son just bought a house. He has good savings for a 26 y.o. I told him a month ago to get out of the market with enough funds to make the 20% down payment he needed. He did, and it now seems like a great move. Thats how everyone should manage. If you are elderly and don't "have time to recover" then choose bonds, T-bills and money market accounts over equities.
That could happen. Or, you could be waiting for a long, long, time.
You are assuming a free market. It doesn't exist.
I kinda lied. My cash bucket isn't that large. I would have to see depression era bargains to invest it, and I'm not sure I'd do it even then.
Congrats to your son. Timing is everything, at least in the short term. If he had waited longer, and the market continues to drop, he might not have had the down. Who can say for sure?
I am not so judgemental as to say what people should or shouldn't do. Many people don't even know what their 401K consists of. I just hope people are OK.
Again, congrats to your son. When I was 26 I was in dire straits. When I got my 1st property, years later, it was the impossible dream.
We are fortunate in that we pretty much live on pension income. We spend very little from our investments, probably only enough to cover the income tax on the income they generate.
If our investments get really beaten up and never recover during our lifetimes (which could happen), our descendants will profit as they recover.
If our investments get really beaten up and never recover during our lifetimes (which could happen), our descendants will profit as they recover.
