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Okay? And 1.5 trillion was wiped off of the US equity market.
by mule1 5y ago
Okay? And 1.5 trillion was wiped off of the US equity market.
- fullstop 5y agoI looked at my 401k and it wasn't pretty.
- ajross 5y agoAre you making leveraged trades in a retirement account? It's off 9%. If someone told you you'd have to make do with only 91% of your planned income, you'd be OK. This is what markets do.
- fullstop 5y agoI won't touch leverage with a 10 foot pole. With that being said, 9% is a lot depending on how much you have in the account.
- iso1631 5y agoIt's annoying, but it doesn't matter too much unless you're retiring soon. I suspect it will drop another 20% though, back to mid 2020 levels. Fed will start to intervene if it goes beyond that, too many votes. Its like house prices in the UK, the government won't allow them to drop.
- fullstop 5y agoI am paying my daughter's college tuition from a 529 plan, so this affects me even though I am not retiring soon.
- ajross 5y agoTough love: if you are currently making needed payments out of an account invested primarily in volatile assets, you have invested it incorrectly. More likely you left the 529 money in stocks because it's a tax shelter, not because you were actually setting that money aside for tuition. It's the same point above: this is what markets do. Investment strategies are risk management strategies. You can't just dump money into whatever is going up right now and then complain when it goes down.
- fullstop 5y ago> Tough love: if you are currently making needed payments out of an account invested primarily in volatile assets, you have invested it incorrectly. More likely you left the 529 money in stocks because it's a tax shelter, not because you were actually setting that money aside for tuition. Not exactly, so I'm not down 9% in my 529. I set target dates and my financial institution has shifted them to more stable assets based on that. I just checked and it's only 19% stocks. As an aside, using a 529 for a tax shelter wouldn't work very well because of the penalties incurred if it is not used for education. 100% of the funds I have saved here are for tuition purposes -- I started doing this years before we had children.
- jeffwass 5y ago> I won't touch leverage with a 10 foot pole. But with a long enough pole and a firm-enough place to stand, you could move the world! <ducks>
- fullstop 5y agoArchimedes investment strategies?
- KptMarchewa 5y ago9% is a blip on the radar after years of record growth.
- moneywoes 5y agoThoughts on a TMF and UPRO portfolio? Better sharpe ratio than 60/40 stocks index
- akg_67 5y agoThis has been discussed ad nauseam on Bogleheads forum and on several subreddits /r/letf /r/hfea
- llampx 5y agoBoth of those are leveraged and unsuitable for buy and hold. Even TLT trades like a stock and not a cash equivalent. Maybe you're a better trader than me but I would not do that mix unless I was in and out of the market every day.
- ajross 5y agoThe S&P 500 is down about 9% off its high from a month or two ago. BTC just crossed under half of it's peak. It's true that's not captured in the headline, but this is a newsworthy crypto crash. It's not the first or the worst, but it's worth covering.
- mule1 5y agoIt's very standard for bitcoin and won't be going away for a while as the asset is still realizing its value across all global liquidity. It's scary and why the SEC dragging their feet on a spot ETF approval i.e. an investment vehicle that a non-crypto fanboy can use (yours truly) is criminal.
- dpark 5y agoYes, it’s truly criminal that the SEC hasn’t approved more ways for speculation in cryptocurrency. It’s not as if an Average Joe can just go out and buy cryptocurrency or something. Can you imagine what the market volatility would be if cryptocurrency proponents were allowed to convince naïve people to invest their money, too?
- obese44 5y ago
- immibis 5y agoalso, DeFi leverage is not censorable by the SEC
- inter_netuser 5y agoa SEC approved spot ETF is needed for institutional access, not retail. Several countries have already approved such vehicles, and nobody imploded. Retail is already all the way in. Institutions have mandates that restrict them to trading venues, types of instruments, jurisdictions (some can only invest domestically, and so cannot use foreign ETFs), and so on and so on. There is a reason why MSTR was able to raise mountains of debt to buy Bitcoin. It's all institutional money.
- bla3 5y agoOver the last month: VTSAX is down 9%, AMZN (hardest-hit Big 5) is down 16%, BTC is down 34%.
- SeanAnderson 5y agoNetflix is down 35%, not sure why Google would be seen as the hardest-hit FAANG.
- carabiner 5y agoWhat's the catalyst for all this? Did it start with Netflix?
- akmarinov 5y agoRates are going up, so stocks are being cashed out to be invested in better yielding bonds
- carlivar 5y agoFed rate policy
- tim333 5y agoPersonally I sold all my crypto after reading Grantham's thing on Friday. https://news.ycombinator.com/item?id=30036797 https://news.ycombinator.com/item?id=30036797
- 5y ago
- dragontamer 5y agoUS equity doesn't pretend to be a low risk investment vehicle resistant to inflation worries.
- mule1 5y agoExcept it does
- simonh 5y agoIt historically has grown reliably overall at the market level, but individual equities are not that at all. BTC specifically was supposed to be that, and it isn't.
- endisneigh 5y agoHow?
- mule1 5y agoIt's common financial advice if you invest in the US equity market index you will get a 7% return a year
- endisneigh 5y agoOver long periods, on average, historically - no one is saying you will always get that in any given year.
- mule1 5y agoSame with crypto. We have 10 years of data so far.
- obese44 5y ago[flagged]
- 5y ago
- endisneigh 5y agoIs Bitcoin a currency or an equity? I forget.
- tootie 5y agoThe US equity market is behaving predictably. Assets were overvalued per their fundamentals and Fed actions are being taken to cool them off. A correction was widely predicted as is the eventual recovery. Crypto is meant to be immune to these effects yet it had an even more dramatic reaction than traditional equities. And while it's recovery seems likely there's still no fundamentals on which you can hang your hat and say what will drive it. It could keep dropping, it could stay flat, it could hit $100k and there's nothing you can point to as evidence it will do any of those.