Voice of Drama and whatchit love to create fear and trouble. watchit brings up the Lehman Bros like he was a member of the family! LOL! You sound like a pub, bud. dems don't like the stock market, remember?
U.S. stocks suffer worst week in a decade Dow industrials posted their worst week since 2008. The Standard & Poors 500-stock index and the Dow are on track for their worst Decembers since 1931, during the Great Depression. Technology stocks dragged the Nasdaq into bear market territory, which is a 20 percent drop from its high.
BREAKING NEWS Stocks fell sharply again. The tech-heavy Nasdaq is down over 20 percent from its peak, entering a bear market, an ominous milestone. Friday, December 21, 2018 4:04 PM EST The Nasdaq is not the only the part of the market in such distress. The Russell 2000 index, which tracks shares of smaller companies, entered a bear market earlier this week. Seven of the S&P 500s 11 industrial sectors are also at the level, led by energy stocks, which are down 28 percent from their highs earlier this year. Thats in large part because crude oil has been in a bear market since November.
No one likes the downward trends of the stock market especially those who are close enough to retiring like us. Investments are a risk. You have to roll with the punches (and the stock market punches a lot!) or this type of investing is not for you.
Fortunately for us, just before these last tumbles, we visited our financial advisor and secured and guaranteed at least 5 years worth of income. The rest well, we have to just wait for another upturn because a you may know, it usually recuperates it's losses.
The market is not about liberals. Can't blame this on them. Concerns about trade, the fed, slowing global growth are the main issues. We have been at 95% cash since Oct./2018. We have out performed the market by 19% since Oct. +2% vs -17%. Most of our cash is in BSV with little risk and 3% yield.
We have been in/out of biotech ETF IBB over the years. Currently out. Like Morgan Stanley on the banking sector. Will be sitting on the sidelines until market sentiment changes. Our 5% in equites are in mREITs. High yield/high risk. Avg. mREITs are yielding 12% +.
Not blaming Trump for the drop in the energy sector but in part for the current bear market.
So, lets look at the demand side of oil. And I agree, all commodities are priced by supply/demand. Oil, corn, sugar etc. If the forecast is for slower global growth then worldwide demand will be down. Lower demand with increased supply will only lower the price for WTI. WTI futures were trading north of $68 Nov. 1. I see WTI 4th quarter 2019 or sometime in 2020 at $35-$40 bbl. maybe lower.