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Anyone else excited for the impending increase in stock market volatility?

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  • Anyone else excited for the impending increase in stock market volatility?

    Saw it somewhat yesterday and even more so today. I'm expecting the health care and financial industries to start taking a beating. Personally I've been surprised that we haven't a market correction yet but one is due soon. What do others think?

  • #2
    Why would you be excited about that?

    Will there be a correction? Sure, eventually. Do I know when? Haven't got a clue. Neither does anyone else. Am I going to invest any differently? Nope.
    Steve

    * Despite the high cost of living, it remains very popular.
    * Why should I pay for my daughter's education when she already knows everything?
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    • #3
      Originally posted by disneysteve View Post
      Why would you be excited about that?

      Will there be a correction? Sure, eventually. Do I know when? Haven't got a clue. Neither does anyone else. Am I going to invest any differently? Nope.
      I've got quite some time until retirement. It will be good to get more for my money now and have a significant period of time to grow.

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      • #4
        Originally posted by MooseBucks View Post
        I've got quite some time until retirement. It will be good to get more for my money now and have a significant period of time to grow.
        Understood. Buy low, sell high.

        Personally, I'm getting closer to retirement so the prospect of a correction isn't as appealing to me as it once was.
        Steve

        * Despite the high cost of living, it remains very popular.
        * Why should I pay for my daughter's education when she already knows everything?
        * There are no shortcuts to anywhere worth going.

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        • #5
          The dow dropped 1% today. Is that considered volatility? How much has the market been up the past 365 days?

          YOu do realize if the market keeps going up then the shares you purchase today are at a bargain. The market doesnt have to drop to "get a good deal."

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          • #6
            Originally posted by rennigade View Post
            The dow dropped 1% today. Is that considered volatility? How much has the market been up the past 365 days?

            YOu do realize if the market keeps going up then the shares you purchase today are at a bargain. The market doesnt have to drop to "get a good deal."
            You do realize you're making my point? It is cyclical and will go down. If you truely believe the market isn't headed for a significant drop at some point in the future you're lying to yourself.

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            • #7
              Statistically (not my opinion) they tend to be the longest running moves. In a low volatility move any counter trend setup has a very low chance of working, in fact what drives them up is what some commentators call a "wall of worry". The last 5 years if you read zerohedge the world was about to implode any day, from the European Union crisis De Jour, or Putin invading ****istan, or terrorist acts or nuclear meltdowns in Japan, while national debt spirals out of control and China enters full on lunacy bubble territory.

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              • #8
                Nothing to worry about. I bought a few shares on Tuesday so that is why the market "dropped". Carry on with your usual investing schedule.

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                • #9
                  Originally posted by MooseBucks View Post
                  You do realize you're making my point? It is cyclical and will go down. If you truely believe the market isn't headed for a significant drop at some point in the future you're lying to yourself.
                  Im not making your point at all. If the market only goes up from now until the next 30 years...buying today would be at a discount compared to 10 years from now. There is no reason the market has to drop to get a discount. Its a dumb thought process people like to throw around.

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                  • #10
                    I don't really care about the volatility, the day to day or month to month changes don't have much impact on a buy and hold investor.

                    When there is a correction it will be nice to pick up shares on my normal buying schedule at a reduced cost. It will be interesting watching how people react, it has been a long time and memories are short.

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                    • #11
                      Originally posted by rennigade View Post
                      Im not making your point at all. If the market only goes up from now until the next 30 years...buying today would be at a discount compared to 10 years from now. There is no reason the market has to drop to get a discount. Its a dumb thought process people like to throw around.
                      Correct it doesn't HAVE to go down in order to buy it at a discount. We have a global economy and we will experience a downturn in the market. It'd certainly be nice if we t wasn't going to happen but that is unrealistic.

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                      • #12
                        I'm young and excited too (excited could mean a mix of several emotions). It is hard to know what is going to happen though. We would have had a longer harder collapse after the real estate conflict if the government hadn't taken action, setting us up for something worse.

                        What I can't figure out though is are we slowly mitigating that "something worse" risk and returning to more sustainable levels? I don't have a clue how we'd tackle all our unfunded promises without really tightening our belts, but I think our velocity towards destruction is less than it was 10 years ago. Maybe desperate measures will catch us repeatedly?

                        If there was a huge crash, I'd jump in with greater force for discount prices. I'm not a huge fan of the market though. If you take away the crash risk, you are eaten by 5% inflation (source contrary to federal numbers). Non-crash risk bonds aren't exactly risk free either though. Just yesterday, I learned the government is borrowing from its own employee's bond fund savings (with a promise to restore) to buy some time against the debt ceiling.

                        Crazy things are happening and I don't have the filter of experience to know if it is always crazy.
                        Last edited by Milly; 03-23-2017, 12:44 PM.
                        -Milly
                        Personal Finance Blogger, Mechanical Engineer, and Mother of 3 Toddlers
                        milly.savingadvice.com

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