Investing

Recession incoming! (part 2)

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  • Oct 21st, 2019 4:57 am
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Recession incoming! (part 2)

So I have asked the mods to unlock the original thread in light of the fact that the TSX just dropped over 300 points today:

https://www.msn.com/en-ca/money/topstor ... li=AAggNb9
Canada's main stock index had its worst day in more than three years on Wednesday as North American markets plummeted on a broad sell off by nervous investors.

All asset classes except gold and safe haven currencies were firmly lower as risk aversion was the underlying tone on the day, says Candice Bangsund, portfolio manager for Fiera Capital.

"I think equity markets are getting a little spooked that the rise in interest rates is going to impact valuations and erode, potentially, corporate profits and this is obviously coming at a time when equity valuations have been so lofty," she said in an interview.

The Toronto Stock Exchange was lower for a fourth-straight day.

The S&P/TSX composite index closed down 336.65 points to 15,517.40, marking the biggest daily decline since September 2015. The decrease wiped out all gains since the end of April.
The Dow just dropped over 800 points today also, the third biggest point drop ever:

https://www.cnn.com/2018/10/10/investin ... index.html
Last edited by SickBeast on Oct 24th, 2018 9:58 pm, edited 3 times in total.
1533 replies
Deal Addict
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Aug 25, 2005
1311 posts
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Kitchener
A week ago it was the strongest economy in decades. There is no real reason for the recent drop, it will recover shortly. Economy is booming. Great time to buy.
Member
Jun 28, 2018
416 posts
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Toronto
People calling for a market correction after continuous All Time Highs are hit (in the US markets) and when it comes. Boom. World is ending!!!!!!!!!
The Distracted Investor

Dividends through quality companies 😃 Though I usually lose money with trades :facepalm:
Sr. Member
Feb 4, 2017
550 posts
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Toronto
So what? Today it drops 300, next day its up 300. Real investors don't pay attention to daily price fluctuations. If you're that afraid, park your money in GICs forever... not sure why you're posting this thread again and when it got locked last time.
[OP]
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CheapMang wrote:
Oct 10th, 2018 8:28 pm
So what? Today it drops 300, next day its up 300. Real investors don't pay attention to daily price fluctuations. If you're that afraid, park your money in GICs forever... not sure why you're posting this thread again and when it got locked last time.
Five months of gains just got wiped out in the past week.

I'm not a financial guy whatsoever, but I am concerned about the following:

- Trump's 25% tariffs on China (not to mention the aluminum and other tariffs)
- rising interest rates
- the housing bubble
- massive government debt
- massive personal debt

IMO we are about to see what happened in 2009. Once the interest rates go up, people are going to start defaulting on their mortgages. It's going to be extremely messy. You'll see. What we are seeing now is not sustainable.

I will also say that the stock market gains we have seen in the USA are all funded by massive government debt. Debt that's owed to China while they slap them with 25% tariffs. Yeah sure, that is going to end well. Not.
Last edited by SickBeast on Oct 10th, 2018 9:40 pm, edited 1 time in total.
[OP]
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Hmm I didn't see this. The Dow just dropped over 800 points today, the third largest point decline ever:

https://www.cnn.com/2018/10/10/investin ... index.html

You guys can keep downvoting if you want. Do your own thing. Do your own research. I'll stick with my BIL who clearly has a great crystal ball infused with powerful knowledge. Winking Face
Last edited by SickBeast on Oct 11th, 2018 6:49 am, edited 1 time in total.
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Oh the Sick Beast is back, time to sell (and never buy again!) for sure.. :)

[OP]
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freilona wrote:
Oct 10th, 2018 8:51 pm
Oh the Sick Beast is back, time to sell (and never buy again!) for sure.. :)

You can't handle it. My knowledge. It's just too powerful.
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Oct 21, 2014
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SickBeast wrote:
Oct 10th, 2018 8:51 pm
Hmm I didn't see this. The Dow just dropped over 800 points today, the largest decline ever:

https://www.cnn.com/2018/10/10/investin ... index.html

You guys can keep downvoting if you want. Do your own thing. Do your own research. I'll stick with my BIL who clearly has a great crystal ball infused with powerful knowledge. Winking Face
You're probably getting downvotes because today was the third worst points decline in the dow, not the worst. So what's your plan, please let us know.
Deal Guru
Jun 26, 2011
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SickBeast wrote:
Oct 10th, 2018 8:51 pm
Hmm I didn't see this. The Dow just dropped over 800 points today, the largest decline ever:

https://www.cnn.com/2018/10/10/investin ... index.html

You guys can keep downvoting if you want. Do your own thing. Do your own research. I'll stick with my BIL who clearly has a great crystal ball infused with powerful knowledge. Winking Face
It isn't the largest DOW points drop ever and percentage matters more than points.
Deal Fanatic
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This is nothing. The market tanked 20% in 2011 based on news alone (not economic metrics, like 2008 or 2001). US and Canadian markets are down 5% from the highest point. You need a temperament to sustain another 2008.... or 2001.... or 1987.

Days like today should bring the same smile that Amazon Prime Day or Black Friday Deals brings to most shoppers.
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Feb 21, 2010
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Scarborough
Give me sp500 at 2600 level and I will rejoice. I am just holding to my shopping list at this moment
rodbarc wrote:
Oct 10th, 2018 9:06 pm
This is nothing. The market tanked 20% in 2011 based on news alone (not economic metrics, like 2008 or 2001). US and Canadian markets are down 5% from the highest point. You need a temperament to sustain another 2008.... or 2001.... or 1987.

Days like today should bring the same smile that Amazon Prime Day or Black Friday Deals brings to most shoppers.
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SickBeast wrote:
Oct 10th, 2018 8:52 pm
You can't handle it. My knowledge. It's just too powerful.
Oh that’s for sure - will go check if https://www.zerohedge.com says something different today.. or better yet, will watch Ancient Aliens, they knew it all along :)
Last edited by MrDisco on Oct 11th, 2018 11:33 am, edited 1 time in total.
Reason: unnecessary
[OP]
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Gungnir wrote:
Oct 10th, 2018 9:03 pm
You're probably getting downvotes because today was the third worst points decline in the dow, not the worst. So what's your plan, please let us know.
My own plan is to wait this out some more.

I will tell you that my BIL said he bought stuff today after the dip. But he said he is still quite bearish about the market overall.
Penalty Box
Dec 27, 2013
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the world is ending, the world is ending!

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