Dow Crash Coming To Your 401k

[loco]

My 401K has really thrived since Biden and Harris became President and Vice President-elect.  Thank you Donald for mishandling the virus and running a petty, bitter, juvenile campaign.

 

Electoral College results confirm it: Joe Biden is the next president
Mon, December 14, 2020
https://www.yahoo.com/news/electoral-college-results-confirm-it-joe-biden-is-the-next-president-222811405.html

U.S. stocks end mostly lower after an early rally evaporates
Mon, December 14, 2020
https://www.toledoblade.com/business/stock-market/2020/12/14/us-stocks-end-mostly-lower-after-early-rally-evaporates/stories/20201214149

[SOMEPARTS]

Just a note to everyone. Apparently the 2020 CARES act is still in effect to withdraw 401k without the 10% penalty.

Other taxes would apply and this is not financial advice but I found that interesting. Might be seeing a drop this month as some cash out.

[loco]

Dow and S&P 500 end 2020 at record highs

https://www.washingtonpost.com/business/2020/12/31/stock-market-record-2020/

https://www.cnn.com/2020/12/31/investing/dow-stock-market-2020/index.html

2020 is NOT over.

Hold on tight.

-NT

[Dos Equis]

Dow and S&P 500 end 2020 at record highs

https://www.washingtonpost.com/business/2020/12/31/stock-market-record-2020/

https://www.cnn.com/2020/12/31/investing/dow-stock-market-2020/index.html

 

Surely Neurotoxin/Mons Venus meant the crash was coming in 2021. 

[loco]

 

[Soul Crusher]

Well now I can see a crash on the way. 

[Humble Narcissist]

Well now I can see a crash on the way. 

Based on the election?  Nah, they'll keep it going for another year or so.

[IroNat]

Based on the election?  Nah, they'll keep it going for another year or so.

Agreed.  Still more seats left on the Titanic.

[Dos Equis]

Well now I can see a crash on the way. 

Please save the predictions for our resident stolen valor prognosticator.    

[loco]

Just a note to everyone. Apparently the 2020 CARES act is still in effect to withdraw 401k without the 10% penalty.

Other taxes would apply and this is not financial advice but I found that interesting. Might be seeing a drop this month as some cash out.

Didn't happen.  I doubt most people with a 401K knew about this, and the rest are probably smart enough not to do something this foolish.

[Soul Crusher]

https://www.cnbc.com/2021/01/26/stock-market-futures-open-to-close-news.html

Biden crash

[SOMEPARTS]

Didn't happen.  I doubt most people with a 401K knew about this, and the rest are probably smart enough not to do something this foolish.

Timing is everything until it isn't.

Wake me up when it retraces to 18k where it belongs. 

[loco]

Timing is everything until it isn't.

Wake me up when it retraces to 18k where it belongs. 

Are you predicting this will happen for sure?

[SOMEPARTS]

Are you predicting this will happen for sure?

Unlikely in the near term. The main goal is to keep the game going at this point...money printing, buybacks, companies buying bitcoin, etc. Central planning seems to be the new norm.

[loco]

Unlikely in the near term. The main goal is to keep the game going at this point...money printing, buybacks, companies buying bitcoin, etc. Central planning seems to be the new norm.

Are you predicting this will happen for sure, in the not so near term?

[SOMEPARTS]

Are you predicting this will happen for sure, in the not so near term?

If they print 5 trillion a year then all these numbers will be new "record highs". So I suppose not. 

You'll be up 18% YTD in your portfolio but a loaf of bread will be $16, haha.

Watson, the game is afoot.

[loco]

If they print 5 trillion a year then all these numbers will be new "record highs". So I suppose not. 

You'll be up 18% YTD in your portfolio but a loaf of bread will be $16, haha.

Watson, the game is afoot.

Same recycled doomsday predictions repeated decade after decade.  Same crap, different day.  But this time it's different, right?   

The conventional wisdom among bestselling financial writers of the seventies and eighties was that unemployment and recession would get so bad that the fiscal and monetary floodgates would be thrown open to avert depression, bringing on inflation.

To fight it, the Fed would slam on the brakes and throw the country into an even greater slump requiring even more stimulus, causing even worse inflation, requiring even tougher brake slamming...and around and around it would go, inflation, recession, inflation, recession, getting ever worse.

The "malarial economy," Howard Ruff and others dubbed it, alternating chills and fever and, eventually, collapse.  Ruff wrote How to Prosper During the Coming Bad Years and (when they didn't come) Survive and Win in the Inflationary Eighties (which proved to be highly desinflamatory).

Douglas Casey cashed in with Crisis Investing.  Ravi Batra hit #1 in 1987 with The Great Depression of 1990 (unemployment was 5.6% in 1990), the same year James Dale Davison and William Rees-Mogg weighed in with The Great Reckoning: Protecting Yourself in the Coming Depression followed by Blood in the Streets: Investment Profits in a World Gone Mad.

And so it went.  "But there is another scenario which should not be dismissed out hand," I wrote in this space in 1983, "unaccustomed though we've become to improvement: That this decade, if we keep our wits about us, could become what Paul Volcker has called the mirror image of the last one: falling energy prices, falling inflation, falling interest rates, rising productivity, rising real wages, rising employment.  I make no secret of being partial to the optimistic scenario.

I think we've laid a technological base that places us, potentially at least, on the brink of unparalleled prosperity."  And indeed the decade that followed worked out much that way.  (One indicator: The Dow quadrupled.)  And the generally positive trends continued well beyond 1993.  Seven years later, in 2000, unemployment was 4%, the Dow had nearly tripled its quadruple, our National Debt had been shrinking relative to the size of the economy as a whole.

We faced challenges, certainly, and had kicked cans down the road.  But things were looking pretty good.  Then came 2001-2008.  But then came 2009-2015, so things are again looking pretty good.

Andrew Tobias, The Only Investment Guide You'll Ever Need, Publication date : April 26, 2016
https://www.amazon.com/Only-Investment-Guide-Youll-Ever/dp/0544781937/ref=sr_1_1?dchild=1&keywords=The+Only+Investment+Guide+You%27ll+Ever+Need&qid=1614272995&sr=8-1

[SOMEPARTS]

Same recycled doomsday predictions repeated decade after decade.  Same crap, different day.  But this time it's different, right?   
Andrew Tobias, The Only Investment Guide You'll Ever Need, Publication date : April 26, 2016
https://www.amazon.com/Only-Investment-Guide-Youll-Ever/dp/0544781937/ref=sr_1_1?dchild=1&keywords=The+Only+Investment+Guide+You%27ll+Ever+Need&qid=1614272995&sr=8-1

Hmmm...so, they've printed 5 trillion in one year and shut down everything previously? I must have missed that.

Your faith in central planning is commendable, comrade. That's where we are.

[loco]

Hmmm...so, they've printed 5 trillion in one year and shut down everything previously? I must have missed that.

Your faith in central planning is commendable, comrade. That's where we are.

Sure, this time it's different.  I have no faith in central planning.  I just know history and I'm not susceptible to, or allow my future plans to be influenced by fear mongering, doomsday predictions, and pessimism. 

As many panicked at our national debt at the end of the war, a 1945 article in The Wall Street Journal was prescient. “There is little likelihood that the national debt will be reduced substantially during the next generation,” it read. “This means that debt management rather than debt reduction is the important problem before the Treasury in the coming years.”

Same thing today.

When people say, “We’re leaving this debt for our kids and grandkids to repay.” Well … probably not.

This isn’t a mortgage that has to be paid in full by a specific date. Without repaying a cent of the debt, its burden could easily be less in another generation than it is today.

https://www.collaborativefund.com/blog/who-pays-for-this/