US stocks were sharply lower Friday as investors digested souring consumer sentiment and inflation data that showed an uptick in one of the Federal Reserve’s key gauges, underscoring the delicate state of the economy as businesses brace for President Donald Trump’s tariffs.
The Dow tumbled 750 points, or 1.77%, on Friday. The broader S&P 500 fell 2.1% and the Nasdaq Composite slid 2.8%.
. . .
Wall Street was also grappling with Trump’s announcement on Wednesday of 25% tariffs on all cars shipped into the US, set to go into effect April 3. Trump also announced tariffs on car parts like engines and transmissions, set to take effect “no later than May 3,” according to the proclamation he signed.
OMG… Trump was lying about fixing the economy? Please say it isn’t so!
Honestly, kinda surprised it is only dropping this much. Would have though the collapse of the free world as we know it to have more of an impact.
(extremely reddit voice) priced in
Damn it, who is buying the dip?
Looks like I made the right choice pulling most of my 401k out of stock/blended funds and into stable bonds.
Depends when you’re going to need that money. If it’s decades in the future, then reacting to market fluctuations like this only tend to make people lose money on the long run. There’s yet to be a stockmarket dip that we haven’t recovered from.
That was a smart decision.
That’s great, until our money is worthless and hyper inflation sets in. Nothing will keep your money safe from that.
That is a good point. I think Turkey is a good example of that happening right now. I don’t know that they are technically an example of hyperinflation, but they have had extremely high inflation.
Looks like I made the right choice by not saving money at all and working until I die.
Looks like I picked the wrong week to quit sniffing glue
These are the type of comments I came to read on Lemmy.
At least you don’t have a drinking problem
No problem!
It’s going well with the ‘Make America Great Again’ over the other side of the pond
Bro just quit buying avocado toast and pull yourself up by them bootstraps, you’re just not working hard enough bro get on the grind and then you can maybe retire in a slightly larger cardboard box
Maybe even be able to afford the ritzier corrugated cardboard boxes everyone’s talking about?
Looks like I made the right choice pulling most of my 401k out of stock/blended funds and into stable bonds.
You’ve made HALF the right choice. You “sold high”, which is great!
However, the harder part is knowing when to go back in for the “buy low” part. If you’re out of the market when that recovery occurs you’ll be missing out on those gains. I’ve look at historical recoveries and can tell there is no why I’ll know when that time is. I will guess wrong every time.
I hope you’re better at it than I am.
Most people arent playing the market daily. Especially in something like a 401k. You dont need to time the bottom. We’re already in a correction, and its still going. You can wait until the market recovers, and as long as you buy back at a price lower than what you sold, call it a win.
Dont chase, “what could have been” because youll always feel like you lost
You can wait until the market recovers, and as long as you buy back at a price lower than what you sold, call it a win.
Right, thats the magic, but its not that easy. No one knows when that will occur.
You have to accurately predict both a high enough point to profit, but also, and much harder, put the money back in when you decide its “low enough”. Look at historical recoveries. You said it yourself, most people aren’t playing the market daily. The folks that are pulling out may miss the recovery by weeks or more because they’re not watching. I know I don’t watch that closely, but I also don’t try to time the market.
Dont chase, “what could have been” because youll always feel like you lost
Isn’t that what trying to time the market is doing? The folks that are pulling out to put in later are attempting to time the market.
I’m arguing the opposite. “Time in the market beats timing the market.”
We have a lot of the same points, but what im trying to drive home is that, “buy low, sell high,” doesnt mean, “buy the lowest, sell the peak.” Markets in correction right now, its generally trending down. Potentially will turn bear market. You dont need to follow daily to know that. Now is as good a time to sell as last week, or the peak. You didnt miss it.
When it goes down more, you dont need to see the bottom. You can wait until it hits recovery or bull market even, and buy back. That point will likely be lower than where you sold even if its not the lowest. You dont need to buy the bottom, but buying lower than you sold is a win.
When it goes down more, you dont need to see the bottom.
So when are you recommending buying back in with your strategy? 1 point lower than you sold for? 10? 100? 1000?
You can wait until it hits recovery or bull market even, and buy back. That point will likely be lower than where you sold even if its not the lowest. You dont need to buy the bottom, but buying lower than you sold is a win.
Unless you miss that point, and you have to buy back in higher than you sold for, and it could be years before its ever low enough for you to “buy back in low than you sold”.
If you buy back in when its higher than your arbitrary threshold, but then drops back down again the next day, do you sell again?
when we hit recovery or bull market
Those are technical terms. Thats when i recommend buying back in.
Those are only defined for a time period historically. When those time periods have those names, you’re at the point I’m talking about where you may have missed the entry point to buy in cheaply. Nobody says, with any faith or knowledge, “this is it! this is the recovery starting right now!”.
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I wish you luck. This is the fourth huge stock selloff in my lifetime, and for none of them did I accurately predict the recovery.
I agree, especially since interest rates are currently relatively high, it’s quite OK to remain liquid these days.
The right time to go back in is whenever this admin is done, there is no “low” when the floor keeps falling out.
That sounds like a rational answer. Stock markets are not rational. Also, who’s to say the next admin isn’t just a carbon copy of this one?
You can never time the lowest point. What you can do however is guarantee yourself a massive gain over the next few years when the stocks inevitably go back to pre-trump levels by buying it now, which is already much lower than it was 2 months ago
Wait 16 months.
It’s gonna go lower before it’s done, but in 18 months people will know how the midterms look, and the next chance to break this 3/3 lock on government by the aristocracy.
Then it’s either dump it back in or dump it in the Nikkei or something as you negotiate the sale of the smoking ruin you called a house and get on the boat.
You can never time the lowest point.
You’re cheating this exercise. We were talking about properly guessing when to buy back into the market, and you’ve predicated your solution with this:
What you can do however is guarantee yourself a massive gain over the next few years when the stocks inevitably go back to pre-trump levels by buying it now
This presupposes you’ve already sold to a cash position prior to the fall. So that would be accurately timing the market at the best time to sell off. If you sold even a month ago, you would have already incurred a loss from the highest peak value. You’re arguing against the parent post about selling off all stocks to a cash/bond position today. You’re both depending on a close-to-perfect timing of the market. He’s depending on buying in at the low, you’re depended on knowing when the high was to sell.
Also, I think its sound thinking to always be suspicious of anyone’s claim saying “What you can do however is guarantee yourself a massive gain” when talking about investments. There is no such thing as a guarantee in investing.
Timing the exact top and bottom is impossible, but you can always sell at an all-time high and buy at a 52 week low.
Personally, I find it more effective for myself if I frame it in terms of “owning the most shares” instead of “making the most dollars”.
If I started with 100 shares and now have 200 shares, I consider that a win, even if the 200 shares together are worth less than the 100 shares were at one time.
Timing the exact top and bottom is impossible, but you can always sell at an all-time high
An all-time high? So on point over the prior record and you sell?
and buy at a 52 week low.
I’m not understanding your strategy here. What are you accomplishing by putting your money back into the market at the dollar figure equal to the lowest value in the last year (52 weeks)?
What if the recover occurs prior to stocks ever hitting the 52 week low? You’d still be out of the market and will have missed the recovery.
Personally, I find it more effective for myself if I frame it in terms of “owning the most shares” instead of “making the most dollars”.
If I started with 100 shares and now have 200 shares, I consider that a win, even if the 200 shares together are worth less than the 100 shares were at one time.
This confuses me even more. Number of shares is completely irrelevant. Stock splits double shares (and half values), a reverse stock split would double value (but half number of shares). I mean, if you’re just interested in number of shares, you do you, but most people use stocks as an investment vehicle where the value of those stocks is primary value (voting rights being a second value but most people don’t care about that).
If you can’t even understand that I am obviously not including things like stock splits, then I don’t think my comment was intended for you.
If you’re holding the opinion that simply the number of shares of something is more important that the total value of dollars those shares represent, I’m not sure who your audience is for your comment to be intended for.
My audience is people who are literate. You’re just reading stuff into my comments that a reasonable person wouldn’t.
And that’s fine, you do your investment strategy. I’m happy with mine.
Go back and read our exchange. You wrote your position. I communicated my confusion with what I read of your position. You’ve done nothing to explain further what is wrong with how I explained how I understood your position except to say essentially “not that way”. You have yet to provide any more information for me to understand what your way actually is.
I’m not upset with you or your position, I’m genuinely confused. I’m happy to be corrected with my understanding of your position, but you’ve offered none. How else am I supposed to understand you? Just guess more and have you tell me “not that way” more? If you don’t want to talk about it more, thats fine too. I hope you have a great day.
About Jan 21st, I moved 50% to “international developed market”, there is 0 stock from USA in the fund.
We also believe the dynamic macro environment has contributed to a more cautious consumer
Am I getting this right? Is this double speak for “the government is fucking up so badly, people try to save some wealth for the inevitable fall off society”?
I think that is what the main point is. Brace for extremely hard times.
I look forward to mainstream media using real words with real meaning, again.
wow, pandemic numbers without a pandemic. trump rules…!
imagine what it’ll look like when the second pandemic hits
as businesses brace for
President Donald Trump’s tariffs.cheap stock buybacksStable genius getting results!!!
Younger generations should be itching for an entry into the market. Endless up and to the right isnt sustainable and, frankly, our economy is a lot of overvalued fluff to begin with. After decades of cheap money and speculation we are WAAAY overdue for a massive correction. I know I’m supposed to use this time to trash Trump but I swear some people just complain without ever identifying an opportunity to actually help themselves.
I forgot how a tax by Trump on Americans to line his $trumpcoin pockets is going to help Joe Busboy. #bootstraps?
I literally have no idea what you’re saying but it sounds like a weak attempt to trash talk Trump even though that’s not what I’m talking about.
Let the lemmings follow Trump off a cliff. Everyone else, buy low if/when they can.
That’d be great if anyone had money to buy with.
Buying in is perpetuating the bubble. Maybe those younger generations should be itching for a livable planet and not a few extra shares of the orphan crushing machine.
Very brave. Let’s all sing kumbaya.
The world is in this shitty situation because we’ve had decades of people taking opportunities to help themselves. I don’t think it’s a radical position to question what good a tiny bit of personal enrichment does.
“Gotta get in there & scoop up grandma’s retirement funds while they’re cheap!”
Gramma should have no guarantee that her assets go up indefinitely. That is a boomer concept. Infinite growth is unrealistic and unsustainable. Hopefully her kids and grandkids will take care of her like they are supposed to.
Why don’t those kids and grandkids invest their speculation money into something that tangibly helps grandma? Why go through the rigamarole of building a portfolio to maybe someday pay for a nursing home instead of funding a food bank or a mutual aid network?
Lol invest Grammas money in a food bank? 😆 Unless the bank is her refrigerator and the investment is groceries you’re just wasting money. You win for most unrealistic solution.
Gramma should live with you when she’s old not go to a nursing home. This is the way it’s meant to be done.
In 2022 nearly 1/10 households with an adult aged 65+ were food insecure.
Speaking of grandma living with you, multigenrational households are more than twice as likely to experience food insecurity.
Is feeding those people wasting money? You’re fine with your grandparents being part of that population if something unexpected happened to you?
Just admit that your solution is “fuck you, i got mine”.
If you are experiencing food insecurity don’t give your money to someone else.
If you have enough money to significantly invest in the stock market you’re not experiencing food insecurity
11 weeks ago, ‘2023’ was last year.
This isn’t a slump yet. If Dougie shuts off the power to three states, I hope he does it during a break between the “oh no unregulated drinking water had maaaaaaaassive e.coli in it” diarrhea outbreak right when the softwood tariffs have cratered the toilet paper supply the worst.
At that point in time, expect a stark realization of the state of things to cause some sadness to leak into the market too. I predict three northern states fighting for black market TP and shitting prolifically in the dark to really affect the market. But probably, still, not his numbers.
…what year do you think it is now?
It’s gotta be at least 2027 by now…
Based on their comment, 2025.
this isnt a slump yet
Technically we are in correction territory, so id say we are a slump. This isnt the bottom though. Get some puts and ride this baby all the way down. I hit 10x on tesla puts that i bought yesterday. This markets dumb and with the volatility this high, everyone should be making money if they sell when they are green and done diamond hand it
I love this idea that while 60% of the country is living paycheck to paycheck “everyone should be making money” like everyone has money to invest. We are well and truly fucked
I turned $70 into $2k in the last 2 days. It doesnt take much to get started
No offense but that sounds like casino talk. You got lucky. You definitely should not be telling to invest in things they don’t understand with money they don’t have.
Yeah gonna back you on this one, maybe I’m I’ve got a bit too much Scottish blood but the risks involved in it are too high and reliant on an inmate volatility. If ya have the extra cash to spare get a good pair of boots, tools, or equipment which are good investments the difference between a yearly replacement and a bi yearly replacement may very well be 30 bucks.
Also yes I am paraphrasing Sir Terry Pratchett.
Sure, but you see tesla going up on bad news, its not difficult to anticipate its going to come right back down. Im not telling people to throw money away, obviously you need to be educated. Last year i turned 7k into 35k. Took it all out except 700 and am already back to 6k.
Ive been doing this for about 14 years. I have experience and knowledge that someone starting out doesnt. That wasnt my point. My point is, it doesnt take much money to get started.
From a Canadian masterpiece of a videogame:
Like all of you, I was born poor, with but a meager derivatives portfolio and limited vesting options.
What game?
Warframe
Starts out with space ninja stuff, and progressively gets weirder. Currently it’s the time travel zombie boyband clone hunting story arc. Still with space ninjas though.
right when the softwood tariffs have cratered the toilet paper supply the worst
Time to invest in bidets.
Or just wipe your arse on the curtains.
So much winning.
Billionaires and corporations are absolutely winning, in the foreseeable future.
While yes, the stock market going down is the opposite of “corporations winning”
the pie is getting smaller but the oligarchs are getting bigger slices.
If you bet on falling stock prices you can still get richer. Especially if you do not give a fuck about what companies you bet on. Or workers. Or society.
Its almost like it can’t forever be going up…
Almost like someone actively causing instability with bad economic policy and stirring global political instability would cause it to go down.
But… But line. Line go up.
Youre telling me that exploiting the workers, making life horrible and expensive for the middle and lower class while giving tax breaks to the ultra wealthy makes the line not go up?
B… But line. Line go up!
With all this hysteria going around it seems like the general population has forgotten how we live in the real world and where we came from, how we got here.
Except if you follow very basic economic policy and buy low/sell high a recession/major correction is just a buying opportunity. Think new game+ mode, now you extra stonks on your new playthrough.
Investor bros always pull this line out.
The stock market is more than 30 year olds who can put a extra 100k into it and wait.
A lot of people’s 401ks are tied to this shit, jobs are tied to the market, investments are tied to the market.
It’s a lot more complex than “buy the dip bro!”
I told my partner that we needed to stop excessive spending like going out to eat while the economy is so uncertain. She was ok with that. I’m not feeling great about our (collective) future. Sigh.
I hate that going for a meal out is considered excessive, from someone who is in the same boat as you.
since 2023
So what’s the explanation for why stocks dropped so much in 2023?
2022 4th quarter was the big drop, 2023 was small decline. The reason was higher than expected inflation, with expectation of interest rate hikes by the Fed.
Inflation was part of it, also the Russian incursion into Ukraine was sparking fears of ww3.
The actions of this admin are reigniting those fears and we’re witnessing similar results in the market.
Why is Captain Kirk chilling at the Dow?
Wake me up when it’s worse than 2022.
Hope you like short naps
