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Any news that prompted the market turnaround?

hank
edited September 2020 in Other Investing
Glanced at Bloomberg minute ago with volume off. Can’t stand the wall-to-wall ... politics, conspiracy, politics, conspiracy, politics, conspiracy ... crap any longer. Not that I don’t care. I’m voting with my wallet now and will be there at 8 AM election day.

Back to investing, what caused everything to jump around noon? Oil bounced up 4%. Gold +$15. Dow +600 points. Did one of the Fed members mention another transfusion of money printing or maybe buying more sub investment grade paper? Or maybe investing in equities? (I think they will eventually.) Or maybe Nancy and Mitch has lunch together and consumed too much alcohol?

The FVP people at the various fund houses will have a good time today if this rally holds. Asia was down sharply overnight.

Peace.

Comments

  • Sven
    No significant news other than tech sector rebounded. AstroZenneca vaccine testing paused due to a side effect found in one patient. but According to Dr. Fauci that case is not unusual at this stage of human testing. Data are being reviewed at the moment. Phase III testing takes time to completed. Typically vaccines in the past took over 10 years to reach commerization. This COVID vaccines are moving at incredibly pace.
  • Baseball_Fan
    ...Had to laugh when Hank mentioned the wall to wall politics, conspiracy etc...kinda like this discussion board lately, no?

    Turning into a bunch of pseudo-intellectuals ganging up on anyone who disagrees with their political views...

    Used to enjoy reading the investment perspectives now quite the turn off when most of the posts have to do with political views.

    Me thinks that people are losing their minds...

    Take care all,

    Baseball_Fan
  • Sven
    Hope the wildfire is contained up in your area. The west coast has many wildfires due to climate changes. We have lots of forest in Pacific Northerst.
  • hank
    edited September 2020
    Baseball_Fan said:

    ...Had to laugh when Hank mentioned the wall to wall politics, conspiracy etc...kinda like this discussion board lately, no?

    Turning into a bunch of pseudo-intellectuals ganging up on anyone who disagrees with their political views...

    Used to enjoy reading the investment perspectives now quite the turn off when most of the posts have to do with political views.

    Me thinks that people are losing their minds...

    Take care all,

    Baseball_Fan

    FYI - I’d had a bad encounter before I posted. Searching for scientific information on “dark matter” I’d happened upon a website that uses a similar tittle. Looked like the whole site was devoted to some of the most bizarre and outlandish conspiracy theories about the coming election I’d ever imagined possible. Don’t know why or how people can believe such B.S.

    @Sven - Apparently a group of pharmaceutical companies issued a joint statement today saying they will refuse to be rushed into making a vaccine available to the public by political considerations and until proper testing has been completed. Just a sign of the current craziness that they even found such a statement necessary. Of course, they’ll be branded now as another band of conspirators.

    In other news, the miners (silver / gold) popped 4.4% today. Actually, they held up quite well yesterday as well.

    Thanks for the comments folks.
  • Derf
    Don't get to excited , futures down as 9:30 P.M.
    Derf
  • WABACWABAC
    Derf said:

    Don't get to excited , futures down as 9:30 P.M.
    Derf

    Your comment has me wondering how many people here are trading versus how many are buying some sort of fund for a longer time period.

  • hank
    edited September 2020
    WABAC said:

    Derf said:

    Don't get to excited , futures down as 9:30 P.M.
    Derf

    Your comment has me wondering how many people here are trading versus how many are buying some sort of fund for a longer time period
    Awe shucks. I don’t see many playing a short game. A lot of us like to watch the action. Many, self included, have a predominately long term allocation we leave alone and also enjoy playing around the edges on occasion with maybe 5 or 10%. Frankly, when invested with fund houses in their products (as I am) there’s some pretty serious constraints on frequent trading - some stricter than others. So any attempt to do some fast in and out trading would hit a dead-end pretty fast.

    In an era of practically 0 return on cash, and little more on intermediate investment grade paper, if you can pocket a bit extra now and than making some smart short term bets, I see nothing wrong with it. I mean ... a one-day gain of 3% on a stock, ETF or mutual fund is a whole lot more than what that cash would generate over several years.


    I’m sure there are some traders here. Just don’t think it’s a substantial number.
  • Sven
    Sell off on Thursday as well starting with tech sector. I am not as confident with the weekly reported unemployment number and the continuing layoff of white collar workers.
  • WABACWABAC
    Thank you for the reply Hank.
  • MikeMMikeM
    From what I read, September is the worst month of the year for stocks. Maybe it's just the cycle. Heck, tech stocks were and still are greatly over valued.

    I've reduced risk over the past few months and the recent dip doesn't surprise. Gone from 50% equity in may to 40% now. That 10% difference went mainly into my "other " category according to Schwab. This crazy world worries me to much. Maybe, hopefully, after the election we'll start to see some stability.
  • Sven
    You read my playbook. I reduced stocks, especially the growth funds by 8% over the last 8 weeks. It was going up too fast and confined to a handful stocks. Now I will sleep better with a bit of cash.

    I agree that things may settle down a bit after the election.
  • Derf
    @Sven: It seems you made a very good deal with your selling of growth !
    Good investing to all, Derf
  • StarchildStarchild
    Of course, what was the playbook in March?
  • Sven
    Rebalancing several times a year is an tried and true method. I was several months early prior to March, but that was good enough to lessen the maximum drawdown.
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