PSA: Stock Market Down...Excellent Time To Add to Your Portfolio

[Carnos Jax]

Don’t worry about if it’ll drop further, as someone around here says, that’s like trying to catch a falling knife. Point is we’re approaching historical lows. Whether today, tomorrow or next few weeks...it’s not going to matter too much in the long run.

[Lux Interior]

Carnos Jax wrote:
Point is we’re approaching historical lows.

Your history is very short-term, then.

[Carnos Jax]

Yeah, I meant to say in the last several years. Probably a stretch for me to assume most readers would definitely the same. Point is with a generally growing stock market, you’re not going to get too many opportunities like this (they will come though).

[Speedy]

Nope, the shit has yet to really hit the fan.

[Carnos Jax]

Falling knife, you don’t when it will hit bottom.

[pdq]

Carnos Jax wrote:
Don’t worry about if it’ll drop further, as someone around here says, that’s like trying to catch a falling knife.

A “falling knife” is generally used as a caution not to jump into a stock or other asset during a drop.

Carnos Jax wrote: Point is we’re approaching historical lows.

Schiller P/E ratio for the S+P 500:



Even after the last 4 days, the Schiller index remains around twice as high as the long term average. In fact, there have only been two times before 2019 when the Schiller P/E ratio was higher than it ended Thursday afternoon - once around the end of the 90’s, before the dot-com crash, and...well...in 1929. Prior to the 2008 crash? Nope, not this high. Prior to Black Monday in ‘87, when the market lost over 22% of it’s value in a day? Not even close.

Anything can happen - perhaps we’ll go back to massively overpriced stocks. But I fear this is about more than a virus, and I’m not sure it’s done.

[davester]

Carnos Jax wrote:
Yeah, I meant to say in the last several years.

No it's not. It's down to where it was in October.

[Carnos Jax]

But that (October) was a relative low as well. I personally expect it to drop further (maybe even the expected correction or recession). But I can’t guarantee it. If you are waiting for it to hit rock bottom, Wall Street would love to talk to you. There are several stocks approaching a good value (Apple for one).

[Ombligo]

Glanced at the aftermarkets, today (Friday) looks like a repeat of yesterday.opefully the weekend will sober things up a bit.

[NewtonMP2100]

....think it will fall further......this coronavirus stuff is just beginning and will get worse before it gets better.....