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Markets still falling like whoa

Llano Estacado

By Llano Estacado
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TwiceHorn

TwiceHorn 31415

Posted
Posted (edited)
27 minutes ago, 52-80 said:

index fund was expected to outperform target funds last decade, because last decade was a historic bull run for the s&p.  target funds are about risk management, because the sooner youre retiring, the less you want to be exposed to a big drawdown. 

 

if you think of target date as roughly increasing bond exposure as time closes, you'll see corresponding increase in sharpe and sortino...which is what those investors expect

I've never been in a target fund except briefly when it was "the" option in a 401k.  I suppose they have high fees because it takes fairly active management to preserve their "profile."

And an index fund, while "diverse" within its "sector," is not diversified like a target fund would attempt to be.

So yeah, I would expect a target fund to have lesser returns than most broad index funds.  Also lower volatility and risk.

I have just avoided them because my risk tolerance is high enough to own index and other types of funds that are more aggressive.

 

Edited by TwiceHorn
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Eastwood
Eastwood

That's why I'm out. There is no end game, IMO. This has to be fixed outside of the market and I got too nervous about what that entails for retail investors. They will always be last on the list, if o

Rusty Shackelford
Rusty Shackelford
Eastwood
Eastwood

I'm not a financial advisor. This is not financial advise. I don't work in finance. I do not have a degree in finance. Actually, I have a BA and I'm bad at math past Cal I. I won't apologize for the l

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WBT

WBT 20553

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On 6/12/2020 at 11:24 AM, Tailgate said:

Long term....loooong term.

https://www.cnbc.com/2020/06/12/jpmorgan-says-stocks-will-climb-nearly-50percent-as-investors-flee-low-returns-in-bonds-and-cash.html

JPMorgan says stocks will climb nearly 50% as investors flee low returns in bonds and cash

It's almost as if the fed keeps interest rates near zero to discourage saving and prop up wall street.  They got some real mental giants over there at JPMorgan.

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Blotto

Blotto 23477

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26 minutes ago, NateHitch said:

What are y'all thinking about GNUS? I added some on Friday in anticipation of their Monday launch but have reservations about it, I have no idea what to expect.

Nothing like investing with conviction. Personally I stay away from companies trading at 80 times revenue,  that lost $11 million on $5 million dollars of revenue last year, and 2 months ago was trading at .28 cents. But in this market the stock could go up another 400% and it wouldn't surprise me. Just have a plan about when you get out, and if it hits that number, get out. 

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LTtxfan

LTtxfan 49136

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1 hour ago, NateHitch said:

What are y'all thinking about GNUS? I added some on Friday in anticipation of their Monday launch but have reservations about it, I have no idea what to expect.

Be sure you check out the "Surly #Stonks" thread.  Lots of discussion on GNUS there...

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LTtxfan

LTtxfan 49136

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CNBC:  Dow futures drop more than 500 points as Wall Street looks set to extend last week’s sharp losses... -592

 

Dow Jones Fut (Sep'20) (@DJ.1:Chicago Board of Trade)

Last | 1:05:04 AM EDT Volume
24,806.00 
-592 (-2.33%)

 

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Dnaguy

Dnaguy 11882

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1 hour ago, Fudge Nuggets said:

Dip buyers already out in force.  We will be green by EOD 10:30.

Why wouldn't you?

 

I mean, the market always goes up so you stupid not to make money on the dips, son!

 

But this is all masterbation until this uptick in cases shows to be painful, later this year a true second wave, or a breakthrough in therapeutics / vaccines.

 

As Charlie would say, the cake is baked ..... or as we would say, it's already priced in.

 

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Dnaguy

Dnaguy 11882

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5 hours ago, Fudge Nuggets said:

Dip buyers already out in force.  We will be green by EOD 10:30.

 

will ferrell laughing GIF

 

It was 11 Central for the NASDAQ and ~ noon for the DOW.

 

10 minutes ago, Eastwood said:

And we're back.

Because markets go up. Don't you know anything?

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Harrison Stafford

Harrison Stafford 3335

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2 hours ago, Incredulity said:

 

Something fishy's going on and I've just about haddock with this market as my positions continue to flounder.  Everyday, I say to myself, "This scampi happening!" as I battle to avoid turtle disaster.  If anyone has a clue where the market's headed, dolphinitely let minnow.  I mean it's not all bad, but I cod do better.  Wish I was krilling it.  

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washparkhorn

washparkhorn 9939

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The Fed has a new toy and the Fiscal Ship appears on the horizon . . . 

Quote

The Fed said it will start purchasing corporate bonds on Tuesday in the secondary market, one of several emergency facilities launched in the wake of the coronavirus pandemic. 

A flood of liquidity in the form of fiscal and economic stimulus, along with uneven but steady re-openings of state and local economies, sparked a sharp rally in the stock market since its late-March trough. 

“Equities were overbought and corrected lower, but the S&P 500 has bounced off support because of the Fed,” said Shane Oliver, head of investment strategy and chief economist at AMP Capital Investors in Sydney. 

“The markets will continue to go higher as long as economies continue to reopen and as long as the number of coronavirus cases is not large enough to stop the reopening.” 

The investor sentiment was also boosted by a Bloomberg News report that the Trump administration is preparing a nearly $1 trillion infrastructure proposal as part of its push to spur the world’s largest economy back to life. 

https://www.reuters.com/article/us-global-markets/global-stocks-jump-on-fed-support-easing-second-wave-fears-idUSKBN23M38R?feedType=RSS&feedName=businessNews&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+reuters%2FbusinessNews+(Business+News)

 

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BevoSwag

BevoSwag 272

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Sen Toomey was spot on in questioning the need now for Corp Bond purchases by Fed.  He basically called Powell out.  He asked what was Powell's exit strategy.  Powell responded that this is something the Fed said at the beginning of the crisis they would do and the markets responded positively.  That's because they believed "we will do what we say we will do".

Toomey jumped in and said whoa!  It was his understanding this was a contingent plan only to be activated as needed.  He further states the markets are performing normally and this additional purchase isn't necessary.

Powell claimed this is not increasing the dollar volume of buying. It is just another shifting away to another form of ETF index.

Where I have a problem with the Fed's strategy and agree with Toomey is that this is not needed.  I'm also puzzled as to who in the Fed decides which bonds to buy?  Am I too much of a conspiracy guy think this leaves room for insider trading by officials privy to insider information?  

I was so busy typing this I missed the concise response Powell made to someone about handing off the trillions of dollars in debt to our grandkids.  I think Powell said each generation does this handoff to the next generation but we have the ability to service that debt.  

 

 

 

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Rusty Shackelford

Rusty Shackelford 414

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43 minutes ago, BevoSwag said:

Where I have a problem with the Fed's strategy and agree with Toomey is that this is not needed.  I'm also puzzled as to who in the Fed decides which bonds to buy?  Am I too much of a conspiracy guy think this leaves room for insider trading by officials privy to insider information? 

 

 

 

BlackRock decides which etfs and bonds to buy, so no worries!

https://www.pionline.com/markets/fed-chooses-blackrock-pandemic-support-programs

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WBT

WBT 20553

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18 hours ago, Incredulity said:

Just got notice that my “high interest savings” account at Ally is down to 1.1% interest.  TINA is real.

I wasn't familiar with that acronym but it is the perfect explanation for the stock market's almost uninterrupted growth since 2009.

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BevoSwag

BevoSwag 272

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Quote

 

The following is from Barrons.

The optics of the Fed’s purchases of iShares ETFs are controversial, given that BlackRock (ticker: BLK) is running the Fed’s three debt-buying programs. BlackRock has said it won’t charge management fees on the iShares ETFs it buys behalf of the Fed. A BlackRock spokesperson wasn’t immediately available to comment.

ETFGI’s Fuhr says that “given that BlackRock has many of the largest investment grade and high-yield ETFs, it’s not surprising that the investment in those ETFs accounted for the largest proportion of the asset allocation. There is a logic in the selection.”

BlackRock’s iShares has 38.1% of the exchange-traded product market; Vanguard has 26.5%, and State Street’s SPDR ETFs has 16.5%, says ETFGI.

 

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