Stocks went down

[Neighbor]

9 hours ago, tigger398 said:

Is there a difference between stocks going down and crashing.

Yes there is a difference.

The rate of speed.

Same difference to the wallet.

The only difference is to the mind's eye. A crash means more people want out then want in at any offered price so the price must go down to find a buyer. If no one wants shares of companies at any price because they want cash instead the price plummets faster than  anyone can get out of the market place.

It is a matter of debt, if no one is in debt the price of a share of stock on any given day  is not much of an issue, but if the companies themselves have debt and their stock and especially their bonds and preferred stock is pledged as collateral then it all hits the fan so to speak. As lenders call their notes due, and the companies have no cash to pay their debts off. That's when the companies end up  folding up their tents and the workers hit the streets on the skids.

Buying stocks on margin is a severe risk! Buying calls and puts are a severe risk! Those that do so without having the cash to cover their "bets" can cause a market place to crash.

If  a person is not in the market and is  not willing to suffer great loss as the risk of making passive gain, they likely should not be in the stock market, nor in debt either. Even in a crash  a severe crash  a person with cash that jingles in their pocket is king of his own domain. In fact he is "richer than Rockerfeller".

Investors suffer their own personal crashes all the time! Even in good  times of easy investing, "investors" lose money. In fact maybe more so then for it seems so easy to make real money. Ask any "investor" about Worldcom. 

Many that held that  high flyer have more than a lifetime's worth of Capital loss to take off their taxable ordinary  income and  or their capital gains for their entire earnings lifetime.

"Stop loss" is no help when a panic occurs for when there is  no buyer the value is zero no matter what.

BUT at the end of the day  cash is always king, as the grocer, he wants cash not your stock certificate, nor even your bitcoin if he is wise. 

Much of the Bible is financial advice and it boils down to stay out of debt and be ready for the King of kings.

 

[Neighbor]

Look at the trees as well as the forest.

The market as a whole has gone up dramatically! Yet if one bet on Toys R Us, it is a major oops.

If one has held GE thinking well it must have bottomed out, it is a major oops.

 

Personal story:

A financial advisor made a presentation at my wife's place of employment, GE was terrific at $65.  My wife wanted in, I said no why it is falling I don't want in, But I got too clever and said, okay put in a buy at $42 order. If it goes that low we probably can't lose it will recover.  

I felt it would never drop to $42, so no buy and no problem. Two years later my broker called and said, hey you never cancelled that buy order from two years ago. It executed today at $42. You now have GE stock. Do you want it? I will buy it back from you even though it had dropped  to forty  by close today, since the order was so old. I said no I will live with it, it will certainly recover,  I feel good about it.

Ha! I finally got out at $28. Today individuals are thinking, well the underlying GE company parts are worth more than the price of the stock at $14 and so they are still finding buyers. 

And the tale of that stock goes on.

 The end for most is a crash a personal crash  if they invested in GE.

So even  when the market goes up some companies still lose almost all if not all value, and the holders of their stocks - crash with them.

My own thought is: Invest first in the peace and eternal security of our Lord's love for us. Then save cash for the woes of any given day. Then share with the needy of the local church, and then  and only then, invest in one's self, and it that includes learning a market place fine, but don't buy a bucket of hype at any price.

[Neighbor]

Every wave has it's undertow!

 A great wave of world prosperity is here! But wait it is easy money time, right? Then what happened to Bed Breakfast and Beyond, why are their bonds now rated as junk?

Passive investing in other people's work effort is a wall of worry for sure. Security  is not to be found without worry , except the security of eternal life for those that are called to the faith of Jesus. In Jesus alone is there security the joy of which cannot be defeated by the worries of the world the crashes of markets not withstanding.  

So as the greatest of modern gospel songs and hymns sings out;" hold on my child  joy comes in the morning".  And after the first chorus comes the punchline; 

"To invest your seeds of trust in God in mountains you can't move
You have risked your life on things you cannot prove
But to give the things you cannot keep for what you cannot lose
Now, that's the way to find the joy God has for you"

 

[tigger398]

2 hours ago, Neighbor said:

Yes there is a difference.

The rate of speed.

Same difference to the wallet.

The only difference is to the mind's eye. A crash means more people want out then want in at any offered price so the price must go down to find a buyer. If no one wants shares of companies at any price because they want cash instead the price plummets faster than  anyone can get out of the market place.

It is a matter of debt, if no one is in debt the price of a share of stock on any given day  is not much of an issue, but if the companies themselves have debt and their stock and especially their bonds and preferred stock is pledged as collateral then it all hits the fan so to speak. As lenders call their notes due, and the companies have no cash to pay their debts off. That's when the companies end up  folding up their tents and the workers hit the streets on the skids.

Buying stocks on margin is a severe risk! Buying calls and puts are a severe risk! Those that do so without having the cash to cover their "bets" can cause a market place to crash.

If  a person is not in the market and is  not willing to suffer great loss as the risk of making passive gain, they likely should not be in the stock market, nor in debt either. Even in a crash  a severe crash  a person with cash that jingles in their pocket is king of his own domain. In fact he is "richer than Rockerfeller".

Investors suffer their own personal crashes all the time! Even in good  times of easy investing, "investors" lose money. In fact maybe more so then for it seems so easy to make real money. Ask any "investor" about Worldcom. 

Many that held that  high flyer have more than a lifetime's worth of Capital loss to take off their taxable ordinary  income and  or their capital gains for their entire earnings lifetime.

"Stop loss" is no help when a panic occurs for when there is  no buyer the value is zero no matter what.

BUT at the end of the day  cash is always king, as the grocer, he wants cash not your stock certificate, nor even your bitcoin if he is wise. 

Much of the Bible is financial advice and it boils down to stay out of debt and be ready for the King of kings.

 

Wow  and I think companies are still in debt. A lot are still closing, and were still in debt.

[Neighbor]

And a lot of companies  are prospering!

If fact many have so much cash that they are buying back their own stocks, some are going private again eliminating secondary market stockholders all together.

Companies like Lego have always been privately owned.

Ikea is owned by  a trust.

Publix is not on any stock market exchange, all it's shares are restricted to employee ownership.

The "stock market" isn't the total of world production by any stretch  of the imagination.

 

[Neighbor]

There is such an abundance of "free" cash out there that Chipotle stock is going nutso upward on it's quarterly report of high earnings, in part due to low avacado prices to them. That even though for the past 18 months the stock was in the hopper over food poisoning issues. There is so much money seeking places to go that it is scary good. Jobs are seeking workers. What workers need to seek is education and experience, or to just  start their own businesses if they have that talent.

(Just turn off FOX NEWS, CNN, and CNBC then the world looks to be a much brighter place of sunshine, lollipops, and meadows with blooming posies everywhere.)

Then sit relaxing and  reading what our creator has left for us to read, and be secure in the sacrifice made by Jesus for all  the saints given Him by His Father.

[Marilyn C]

On ‎25‎/‎04‎/‎2018 at 8:48 AM, tigger398 said:

I heard on news that the stocks went down for five days now. Is that a concern. Did anyone else hear this. Or is it fake news.

Hi tigger,

There is economic trouble ahead, and its good to read the bros, saying keep some cash ready. What is happening, I believe is the unrealistic ups of the stock market, eventually have to come to account. This will permeate through the world system, the countries, the businesses and down to the every day person functioning in the system. While cash is good it will buy us less and less, so it`s good to really know what is necessary and what is not. Too long we have lived on the `never never,` payment scheme, however reality will bite.

And that will come I believe as the IMF, after handing out its special notes (SDR`s) to countries will begin to call in the debts. All countries are in debt and who to? Yes the IMF, (the International Monetary Fund) who is fast becoming the World`s Central Bank. Once the `reset` is done, as the IMF`s president said, then all currencies will start to come even.

We will then be on the fast track to `a loaf of bread for a day`s wage.`

Marilyn.

[tigger398]

1 minute ago, Marilyn C said:

Hi tigger,

There is economic trouble ahead, and its good to read the bros, saying keep some cash ready. What is happening, I believe is the unrealistic ups of the stock market, eventually have to come to account. This will permeate through the world system, the countries, the businesses and down to the every day person functioning in the system. While cash is good it will buy us less and less, so it`s good to really know what is necessary and what is not. Too long we have lived on the `never never,` payment scheme, however reality will bite.

And that will come I believe as the IMF, after handing out its special notes (SDR`s) to countries will begin to call in the debts. All countries are in debt and who to? Yes the IMF, (the International Monetary Fund) who is fast becoming the World`s Central Bank. Once the `reset` is done, as the IMF`s president said, then all currencies will start to come even.

We will then be on the fast track to `a loaf of bread for a day`s wage.`

Marilyn.

Meaning prices are gonna go up and were gonna go into another recession. I don't think we pulled put the one we have.

[Marilyn C]

1 hour ago, tigger398 said:

Meaning prices are gonna go up and were gonna go into another recession. I don't think we pulled put the one we have.

That`s right. Now the last GFC (Global Financial Crisis) mainly involved the major nations. This next crisis will involve the third world countries as well, for they have been borrowing and are in great debt too.

I see it as a rolling financial Tsunami, with wave upon wave, coming over us all.

Time to see what really is important to us and where our security lies.

Time to help others who will be devastated.

regards, Marilyn. 

[Neighbor]

1 hour ago, tigger398 said:

Meaning prices are gonna go up and were gonna go into another recession. I don't think we pulled put the one we have.

REALLY?

The economy is booming!  Absolutely booming!