Dow futures DOWN -669

[spanone]

[C_U_L8R]

1. Caught on to Trump's bogus jobs report?

Or realizing the second wave is starting to arrive and it's going to be bad.

[lapfog_1]

2. Covid-19 is back

(it actually never went away)

the money people are looking at a long term reduction of consumer spending... and therefore a longer and deeper recession... plus things with China are not improving...

last but not least, the market is now pricing in the "clean up crew" (i.e. the Democrats!) to do the difficult work of fixing the economy (again)... and no more tax cut gravy train.

[Maeve]

3. From CNN Business

The stocks mega-rally hit a roadblock: A somber economic outlook from the US Federal Reserve and the 2 millionth coronavirus case in the United States has investors questioning whether they had boosted the stock market too far, too fast.

The Dow was set to tumble 650 points, or 2%, Thursday, as US futures plummeted. S&P futures were down 1.8% and Nasdaq futures fell 1.3%. US crude oil prices dropped 4%.
The rising number of coronavirus cases in the United States has unnerved Wall Street. A second wave of infections could force many businesses to close again just after they reopened.

Federal Reserve Chairman Jerome Powell said Wednesday that the economic future was highly uncertain. Although he acknowledged that May's jobs report was a welcome surprise, he noted that many millions of Americans will never go back to their jobs and could remain unemployed for years.

https://www.cnn.com/2020/06/11/investing/global-stocks-coronavirus-fed/index.html

[spanone]

6. Thanks!

[hatrack]

4. Don't worry!! The AI Sunshine Brigade will blow all that nasty reality away!

.

[Johnny2X2X]

5. I've bet against the stock markets.

I adjusted my portfolio starting in early February and now sit in less than 20% equites and over 80% securities. So for my financial future, the stock market going down helps me. I don’t really root for it to go down, because there’s too many people hurt by that, but if it kept rising and I never found a low point to buy into it would hurt me.

This is the beginning of a severe recession. Could even be classified as a Depression when it’s all said and done. There’s simply no reason for stocks to be going up in that environment. Perhaps some of the big players inflated it to be able to take profits out.

My target to start buying back in is DOW at 16,000, that’s when I start moving money every couple weeks until I get to an 80-20 mix in favor of equities.

[onethatcares]

7. dumb question here

what are "equities" and what are "securities"?

I ask because I really don't understand the terms and how they are used financially.Was a carpenter life long and everytime I got a bit ahead, something came along to knock my finances down so I don't have a portfolio or such.

thanks in advance

[Johnny2X2X]

8. Equities stocks, securities bonds

A general rule is that when stocks go down, bonds gain.

I'm a firm believer in an 80-20 mix in favor of stocks, this mitigates a ton of the risk for you while you still realize most of the gains. That 80-20 should move towards 60-40 as you age and then when you retire it should be heavily weighted in favor of bonds, like 20-80.

In this market, I see a great opportunity in getting rid of my stocks when I did because if I can get back in at 16,000 or so I'll have missed all of those losses and went back in at a low point. Just a tremendous opportunity to "beat" the system. I'm far from an expert though, but I just thought it was a chance to make up some ground since I started late.

I started invested later in life than optimal, but it's never too late to invest. My mother in law made some dumb choices and lost most of her 401K as well as her house, but just having that extra $50K she has left has made a huge difference in her quality of life in retirement. That extra $300 or $400 she's drawing a month is the difference between her having some security and barely scraping by.