Page 1 of 1

Looking to buy with market down 30%

Posted: Tue Mar 17, 2020 1:24 pm
by Brittany
I am investing for my retirement.....RIGHT NOW IS THE TIME TO PUT MONEY TO WORK. What should I buy?
I may not get the bottom, nor will anyone get the top if/when I sell.....but I will start putting money in high quality companies RIGHT NOW...and if you focus on ones that will benefit from this....even better. Do I buy what has been hardest hit and down 30% or more?
I don't listen to Cramer, or Goldman, or Fast Money, or who ever....as they make THEIR money by giving advice...not actually investing their own money.
I'm trying to be 00% invested for the first time since early 2017. I had more cash than i wanted. Will stocks continue to drop more than 30%, probably, but in years when I retire, I am confident I'll be cashing out massive profits.

Re: Looking to buy with market down 30%

Posted: Tue Mar 17, 2020 1:26 pm
by Shantai Chambers
hi Brittany,
I would not buy any stocks at the moment. The next wave of selling will arise when the market takes a dip and margin calls are activated where investors who bought on debt are forced to sell to cover margins. It always happens when markets go down 10, 20, or 30%- even numbers. One wonders why in such bear market with 0 interest rates, the price of gold is falling. My guess is that investors who have gold in their portfolios are selling the precious metal (where they do not have losses) to cover margin calls.

Re: Looking to buy with market down 30%

Posted: Tue Mar 17, 2020 1:31 pm
by admin
Well, good dialogue. Question Shantai. Using your logic, why have not margin calls be called by the brokers? Wouldn't brokers have already made investors using margin sell assets, as stocks have been down for days/weeks and margin calls are usually made within a few days.
Shantai Chambers wrote:
Tue Mar 17, 2020 1:26 pm
hi Brittany,
I would not buy any stocks at the moment. The next wave of selling will arise when the market takes a dip and margin calls are activated where investors who bought on debt are forced to sell to cover margins. It always happens when markets go down 10, 20, or 30%- even numbers. One wonders why in such bear market with 0 interest rates, the price of gold is falling. My guess is that investors who have gold in their portfolios are selling the precious metal (where they do not have losses) to cover margin calls.