I have sold off all of my investments

Let me know when you find him/her?

I don't have near the credentials and education as CI, but I continue to agree with him.

The experts are saying to stay put (i.e. keep your investments as they are) until the volatility calms down, and then to rebalance.

The stock market is supposed to be part of a long-term strategy. The experts are saying that if you are going to pull your money out of the market when there is a crisis, then you shouldn't be in the market in the first place.

I can give my own decidedly non-expert opinion (which is this is a crisis that will end in a few months, at which point the economy restarts with a bunch of people who want to spend money. There will be lots of volatility, but the market will grow.).

But mostly I am saying that you should listen to the experts, and before you make a drastic decision (like selling all your stocks), you should talk to an expert.

I do understand the basis for your opinion. I disagree.

Again, I claim no financial expertise. So I am listening to the experts and staying put with my 401K to which I continue contributing monthly. I have some time before I retire and I am happy to wait this one out (as planned).

Now... putting on my speculation hat with money that I don't need, so I can play with it.

- Everyone in the market now knows what is going on. The surprise is gone. This means that the prices right now take peoples understanding of the crisis into account. Because of this, I don't expect it to tank much more. The shoe has already dropped.

- In generally, the market overshoots bad news. This means that at the bottom, the prices will be lower than the bad news warrants, and at some point there will be an upward jump as an adjustment.

- Over the long term the market will recover.

This makes me think that at some point soon, putting more money into the market (above my normal 401k contribution) would be a good idea.

My (inexpert) understanding of how to do well in the market is this: Buy when everyone else is selling. Sell when everyone else is buying. I know this runs counter to the usual human response which says "sell low, buy high"... that plan never made sense to me.

Who are these so-called "experts?" The current situation is very clear. The world's economy is in a tailspin downwards. People are losing jobs and income. What will save it from falling further? Not government financial intervention. It's the coronavirus; not money or finance. It's the world's economy in distress from health issues. People are more interested in survival, not more money in the bank.

Maybe.

Or it's possible that the bull market was just a bubble, fueled by all kinds of financial chicanery, and that the fundamentals were never that strong.

I have yet to meet a person who isn't worried about how much money they have in the bank. If you weren't about how much money you had in the bank, then you wouldn't have started this thread.

This is a virus. It is serious, and it is having a big impact on the economy. But this isn't the end of the world. It is not the end of civilization. The crisis will end, and the economy will continue to function. Factories will continue to run. You will continue to drive your car. You will continue to buy clothes, and coffee makers and books and lamps. Chickens will continue laying eggs. Cows will continue to give milk.

There is a balance here.

Yes it is serious. Yes, the virus will kill people. Yes the economic shutdown is warranted. Yes there will be an economic impact. Yes, there will likely be a serious recession.

No it is not permanent. No it is not the Apocalypse. No the economy is not going to collapse.

If you feel this way then don't buy stocks. If you do buy stocks, then you need to realize that sometimes stocks go up, and sometimes they go down.

- It make sense to choose to not buy stocks.
- It makes sense to buy stocks for the long term, and stick with a strategy through good times and bad.
- Buying stocks when they go up in value, and then selling them when they fall in value makes zero sense.

Buy high Sell Low is a ridiculous financial strategy. If you buy stocks, you should not be selling them when they fall in value.

That worry began long before the coronavirus. It was some common knowledge that the majority of American families could not come up with $400 for an emergency. From last year:

https://www.cnbc.com/2020/03/16/how-to-cope-with-coronavirus-related-financial-stress-and-anxiety.html

I agree that this is a problem. These aren't the people with large amounts of savings in the stock market (nor should they be).

I have already said that any government bailout money should be focused on low wage Americans who are facing the loss or cut back of their jobs.

CI is a veteran at handling his stocks and money. He has done very well without being told what to do.

You are correct, I can't tell CI what to do. He makes his own decisions and faces his own consequences.

However, I think it is important to make very clear to anyone reading this thread that what CI did is:

1) Financially damaging (if you sell stocks when they drop, you shouldn't be in the market in the first place)
2) Contrary to what the real financial experts are saying.

I believe that Linkat has real expertise... as in financial training. You seem to be dismissing what she is saying.

If you are reading this and thinking about selling off stock based on fear over this crisis. Talk to a real financial expert before making what could be a financially damaging decision

Don't try to set me against linkat. What's wrong with you?

I honestly don't know what you are trying to do here Edgar. You seem to be trying to start a fight, but I don't really get what your point is.

The real point I am making is that people should talk to a real financial adviser before taking drastic action with their retirement funds.

Do you at least agree with this?

What I'm saying, maxdancona, is that there may be more things broken in the economy that can be easily repaired and a recovery may be very very slow. It looks like a great time to buy low but don't expect to make money if everything stays low. Recoveries can be characterized as "V-shaped", "U-shaped", "W-shaped", and "L-shaped". I've heard several economist suggesting that we're likely to hit bottom and stay there. For a while.

I merely voiced support for CI. He has done very well in life for himself and doesn't seem to me to need to be pushed another way.

I don't see how anything but disaster can come of these things
https://www.pbs.org/newshour/economy/federal-reserve-to-lend-additional-1-trillion-a-day-to-large-banks?fbclid=IwAR0wUmMKDbzXfo150RM4xROBTEMd9Y0IeacqD53vDPRApCYkva7aMkd06bc

Edgar, I am saying that people should get sound advice from a financial expert before making drastic financial decisions. I have expressed an opinion. I haven't attacked you or anyone else. I make the same point on legal and medical issues.

You don't have to take personal affront about everything Edgar.