Stormy financial weather. So what?

[swissie]

Wow! Wordwide the "Markets" have erased the gains of the last 3 years within a month. Let's face it: We were overbought to begin with. As always, after a market crash, the question arises "what caused it"? What was the "trigger"?
This time , it is a microscopic "party-pooper" with no brain at all. Frustrating, as "the crown of creation" with a lot of brain must observe that a microscopic organism is in the process of unhinging the wold economy.

  In a situation like this, everything is being sold. Stocks, Gold, Diamonds, Bitcoin and the kitchen sink.

At random, as long as it can be turned into CASH! As I gather, next to everything else, kitchen-sinks are already selling at a discount.

 

I myself have been a "Market-Participiant" for the last 45 years. Must confess, the only time I have made some truly "serious money" was when I bought some "kitchen-sinks" after a crash with a discount. Currently I am looking for some discounted "kitchen-sinks" once more.

Among others, should "the kitchen-sink" called "Brent Crude Oil" sell for $20, I know, I would have found the ultimate discounted "kitchen-sink". Too good to be true.
- 2 years from now, nobody will talk about the "Virus" anymore. The survivors having bought the discounted  kitchen-sinks will have reason to throw the party of their lives.
 
If your live expectancy should reach beyond the next 2 to 3 years, be prepared to sell your low-cost "kitchen-sink" of today at a higher price down the line. Scary, isen't it?
Cheers.  

[brokenbone]

14 minutes ago, pdtokyo said:

Perhaps someone on TV (other than swissie, who has already given it a red-hot go) can explain what this post is about?

 

i'd love to take part in the conversation ... i've had an abiding passion for kitchen sinks since i was a child and yes, my life expectancy 'should reach beyond the next 2 or 3 years' ???? ... but i really don't know where to start with this one ...

what it really boils down to is: can we expect happy hour prices and barfine discount to entice us to depart with our money ?

[UbonThani]

Prices are cheap now. Mkts panic cause people panic.

[mshs]

 

47 minutes ago, swissie said:

"Markets" have erased the gains of the last 3 years within a month.

The S&P 500 is higher today than it was on the 3rd January 2019.

[daveAustin]

39 minutes ago, pdtokyo said:

Perhaps someone on TV (other than swissie, who has already given it a red-hot go) can explain what this post is about?

Sell when all is rosy; buy when folk are terrified. ESP crypto/Bitcoin... 

[shdmn]

47 minutes ago, UbonThani said:

Prices are cheap now. Mkts panic cause people panic.

Cheaper

ftfy.  They are still overpriced imo and could (should) drop a lot more.

[Airalee]

1 hour ago, pdtokyo said:

Perhaps someone on TV (other than swissie, who has already given it a red-hot go) can explain what this post is about?

Just ignore anybody who uses Buffetisms or any other mainstream investing buzzwords in their investment advice....which is just about everybody.

[UbonThani]

51 minutes ago, shdmn said:

Cheaper

ftfy.  They are still overpriced imo and could (should) drop a lot more.

Cause you say so? Swine flu killed 100x more and no panic.

 

The mkts are super cheap compared to 5 years time.

[Roadkillaf]

It's been a good week, in regards to entries and shorts. ????

[Guderian]

I think the OP must be a friend of Health Minister Anutin as he's evidently caught the same virus that addles your brains and makes you unable to communicate sensibly.

[mike787]

This is a buying opportunity of quality stocks, ie,  BRKB, AMZN, etc.   Go long and buy lots.  You will not regret it.  When there is fear in the markets,  be greedy; when there is greed,  be fearful...

[Logosone]

I've said before, and I'll say it again: Swiss people are strange.

[allanos]

The OP has confused many of us with his use of the wrong metaphor. Nonetheless, his post was probably more entertaining than it would have been, because of it!

 

Of course, the novel corona virus was not the cause of the market crash; not even the trigger.  The fact is, the market was looking for an excuse. Stocks were incredibly frothy and, at some stage, could not be pushed any higher, even with the Fed printing dollars for all it is worth.  Something had to give, and, serendipitously, Covid-19 came along.  If it wasn't the virus, some other "manufactured" excuse to pause the markets would have been used.

 

The OP's wet dream of a kitchen sink in the form of Brent Crude at $20.00 may yet come to pass.  It's still early days!

 

[Logosone]

Proper Villeroy & Boch kitchen sinks are very expensive. I doub't you'd get one for 20USD, even it's shaped in the form of Brent Crude, whoever that may be.

[rwill]

Or he could have just posted.  Buy low, sell high.

[URMySunshine]

 

22 hours ago, UbonThani said:

Cause you say so? Swine flu killed 100x more and no panic.

 

The mkts are super cheap compared to 5 years time.

It's a commie plot and will be over by April so says the Prez. Fill your boots !

[1FinickyOne]

On 3/14/2020 at 3:53 AM, swissie said:

be prepared to sell your low-cost "kitchen-sink" of today at a higher price down the line. Scary, isen't it?

I understand you are attempting metaphor, but why do you think/imply prices will be going up? It looks like a major contraction underway... 

[zlodnick]

When the stock market takes a nose dive, people panic and sell their stocks. 

 

If they're selling, someone must be buying. Who's doing the buying?

[KeeTua]

4 hours ago, zlodnick said:

When the stock market takes a nose dive, people panic and sell their stocks. 

 

If they're selling, someone must be buying. Who's doing the buying?

High frequency trading, HTF.

Basically a circle jerk.

[Hank Gunn]

5 hours ago, zlodnick said:

When the stock market takes a nose dive, people panic and sell their stocks. 

 

If they're selling, someone must be buying. Who's doing the buying?

The people who think long-term.

[swissie]

On 3/14/2020 at 10:50 PM, rwill said:

Or he could have just posted.  Buy low, sell high.

In a nutshell: Yes, that is basically what I meant. But I felt it makes for better reading if I include the "kitchen sink syndrome". He He!

[swissie]

On 3/14/2020 at 9:09 AM, Logosone said:

I've said before, and I'll say it again: Swiss people are strange.

I think so too. Just imagine: A miniature country, having managed to stay out of major trouble for the last 700 years. A thrifty bunch of workaholics, having achieved one of the highest living-standarts in the world. Having no natural resources that can be sold internationally. All just by hard work, innovation and discipline.

Indeed, a strange bunch of weirdoes.

[Susco]

On 3/15/2020 at 2:51 PM, Hank Gunn said:

On 3/15/2020 at 9:37 AM, zlodnick said:

When the stock market takes a nose dive, people panic and sell their stocks. 

 

If they're selling, someone must be buying. Who's doing the buying?

The people who think long-term.

Or the people who think it has reached the bottom..and are in for a cold shower

 

Buffett bought the other week 10 million shares of Delta Airlines at 47$ I think. Today they are 31.82

[topt]

19 minutes ago, swissie said:

Having no natural resources that can be sold internationally. All just by hard work, innovation and discipline.

 

Apart from their mercenary armies in the distant past.......

Quote

The young men who went off to fight, and sometimes die, in foreign service had several incentives—limited economic options in the still largely rural cantons; adventure; pride in the reputation of the Swiss as soldiers; and finally what military historian Sir Charles Oman describes as a pure love of combat and warfighting in and of itself, forged by two centuries of conflict.

https://en.wikipedia.org/wiki/Swiss_mercenaries

[Hank Gunn]

38 minutes ago, Susco said:

On 3/15/2020 at 2:51 PM, Hank Gunn said:

On 3/15/2020 at 9:37 AM, zlodnick said:

When the stock market takes a nose dive, people panic and sell their stocks. 

 

If they're selling, someone must be buying. Who's doing the buying?

The people who think long-term.

Or the people who think it has reached the bottom..and are in for a cold shower

 

Buffett bought the other week 10 million shares of Delta Airlines at 47$ I think. Today they are 31.82

I guess you missed the "long-term" part of my quote. (I know that may have been difficult seeing as it was such a verbose post at six-words long.)

 

Long-term isn't until tomorrow, next week, next month or next year. It's 5-10+ years out. Warren Buffet invests for Berkshire Hathaway and not solely for himself. He expects these investments to be worthwhile after he departs this earth. (I believe he is 89 now.) A lot of people said similar things about his investments in '08 and '09 after the sub-prime mortgage induced financial crisis. He's done pretty well since then.

[Susco]

2 minutes ago, Hank Gunn said:

I guess you missed the "long-term" part of my quote. (I know that may have been difficult seeing as it was such a verbose post at six-words long.)

 

Long-term isn't until tomorrow, next week, next month or next year. It's 5-10+ years out. Warren Buffet invests for Berkshire Hathaway and not solely for himself. He expects these investments to be worthwhile after he departs this earth. (I believe he is 89 now.) A lot of people said similar things about his investments in '08 and '09 after the sub-prime mortgage induced financial crisis. He's done pretty well since then.

I didn't miss your long term at Mr Smart Alec.

 

The point I made, and which YOU clearly missed, is that Buffett definitely didn't suspect it would be 31$ today, because if that was the case he certainly would have waited.

 

So IF the DAL stock doesn't further decline from today, It will have to gain 50% before he will get his first profit.

 

By the way not all buyers are named Buffet today, and in the past 2 decades I have seen several super rich investors gone broke.

 

Even your super hero has underperformed the market indexes since 2009. And he lost BIG on Kraft

[Hank Gunn]

2 minutes ago, Susco said:

I didn't miss your long term at Mr Smart Alec.

 

The point I made, and which YOU clearly missed, is that Buffett definitely didn't suspect it would be 31$ today, because if that was the case he certainly would have waited.

 

So IF the DAL stock doesn't further decline from today, It will have to gain 50% before he will get his first profit.

 

By the way not all buyers are named Buffet today, and in the past 2 decades I have seen several super rich investors gone broke.

 

Even your super hero has underperformed the market indexes since 2009. And he lost BIG on Kraft

First of all, Buffet isn't my hero, although I do admire his investment strategies and have tried to model some of mine after his. Two things to understand about it: 1) He doesn't try to time the market, which is what traders do and is extremely difficult (i.e. no one has a crystal ball and can tell when the very bottom of a market will hit.); 2) He is an investor. He buys pieces of/invests in companies that he thinks are a good value.

 

He's been sitting on a lot of cash for the last couple of years because the market's been very overvalued. He saw an opportunity to buy at a price he felt represented good value. He doesn't gain or lose anything until he sells, which is what you seem to be getting confuse about. Again, he didn't buy Delta to try to sell it at a profit next month. He saw it as a good value and may even buy more to dollar-cost average down.

[Susco]

12 minutes ago, Hank Gunn said:

First of all, Buffet isn't my hero, although I do admire his investment strategies and have tried to model some of mine after his. Two things to understand about it: 1) He doesn't try to time the market, which is what traders do and is extremely difficult (i.e. no one has a crystal ball and can tell when the very bottom of a market will hit.); 2) He is an investor. He buys pieces of/invests in companies that he thinks are a good value.

 

He's been sitting on a lot of cash for the last couple of years because the market's been very overvalued. He saw an opportunity to buy at a price he felt represented good value. He doesn't gain or lose anything until he sells, which is what you seem to be getting confuse about. Again, he didn't buy Delta to try to sell it at a profit next month. He saw it as a good value and may even buy more to dollar-cost average down.

This is my last reply to you, because clearly you are doing your best to ignore the point of my first reply with your Buffett drivel.

In case you missed it here it is again.

 

1 hour ago, Susco said:

Or the people who think it has reached the bottom..and are in for a cold shower

So if you think that it are all Buffett's that are buying and everyone who is buying today will be a winner, then you are clearly trolling.

 

Yes maybe Buffett will in the long term make a profit on that Delta Airline stock, he has bought a lot more of them in the past at a higher price, that is if they don't go bankrupt.

 

Let's see by the end of the year how many airlines in the US will not exist anymore.

[Hank Gunn]

2 minutes ago, Susco said:

This is my last reply to you, because clearly you are doing your best to ignore the point of my first reply with your Buffett drivel.

In case you missed it here it is again.

 

So if you think that it are all Buffett's that are buying and everyone who is buying today will be a winner, then you are clearly trolling.

 

Yes maybe Buffett will in the long term make a profit on that Delta Airline stock, he has bought a lot more of them in the past at a higher price, that is if they don't go bankrupt.

 

Let's see by the end of the year how many airlines in the US will not exist anymore.

I'm not trolling. It is you who've tried to denigrate my original post about people who are buying now are ones who think long-term. Those who try to time the market and are thinking of selling in the short term are at risk of losing their money during any type of market.

 

Also, it is you who brought up Warren Buffet and his investment in Delta, not I. As I said previously, he's been sitting on hundreds of millions of dollars in cash waiting for an opportunity. He obviously saw Delta as an opportunity. The old adage still applies: "Time in the market is more important than timing the market."

[swissie]

2 hours ago, topt said:

Apart from their mercenary armies in the distant past.......

https://en.wikipedia.org/wiki/Swiss_mercenaries

I hear you, but:

There was a period where Swissie mercenaries were in high demand. But during this time, back home the majority of people just started to consolidate a fragile small State, surrounded by superpowers. After the Battle of Marigniano (1515), the losses were so massive, that even the few surviving mercenaries went home to lend a hand to help along this small fragile mini-state.

 

The birth of Swiss-Neutrality. = Whoever wants to beat it's others head in, we will not be part of it anymore. We defend ourselves and nobody else.

 

To stay on Topic: Too much success is Toxic. These days, the Swiss Central Bank is forced to buy up foreighn currencies to weaken the Swiss-Franc. In order to keep the swiss-export industry competitive.

Success can be a course. The "swissies" must have done something wrong.