So what caused the big drop in stock prices?

[Skinhead]

I thought there was good economic news, and things were going really well there for a while.  401K took a big hit today.

[Rams]

I thought there was good economic news, and things were going really well there for a while.  401K took a big hit today.

Well shoot, now ya got me to thinking about it.
I promised myself long ago that I would keep investing a portion of my pay until retirement in fairly risky stock.   Then I retired and moved all of my money into much safer 401K.   I have no idea but, you've got me wondering.  

Nope, nothing I can do about it now.   The nice thing about not having much is, they can't take much away for you.     Everything I have is paid for, my debt to income ratio is so low and my credit score is so good, the bankers don't care what's in my 401K, they keep offering to loan me money that I won't take.  

Life could be better I suppose but, having no money and good looks is better than being rich and ugly (I hope).  

Rams

[Jersey mike]

On Thursday the market responded to Dr. Fauci’s comment regarding a vaccine in the near future which the market didn’t like and things went south real fast but bounced back by the end of day for not a terrible loss.

From what I heard about yesterday was it was a market correction as the analyst’s like to say. There was an underlying theme of people possibly getting restless over the new regulations/reversing Trump’s decisions and taxes Biden will impose,  as well as people trying to take profits and reposition themselves.

The jobs report came out yesterday and it exceeded expectations again adding 1.37 million jobs in August, predictions were August was going to be a terrible month. Unemployment rate droppped again down to 8.3% beating expectations there also...projections were a drop only to 9.7%.

[98valk]

I thought there was good economic news, and things were going really well there for a while.  401K took a big hit today.

the flooding of extra, extra shares of tesla and apple stocks due to them splitting the same day.

https://www.youtube.com/results?search_query=kendall+report

[Oss]

Single or 2 day drops can be due to a single institutional investor or a large company which is listed
offering a share or announcing a bad result

I don't look every day at what is the temperature of the market

If I am in then I am in unless I want to take $ out and park it.

SHMBO however looks every day and she controls most of the action in our pension and Etrade accounts

We are still up from before ccp virus (covid19) was released

[DDT (12)]

The experts have answers for us... so we can at least take some comfort in that. Just yesterday I was tuning into one of those 'Business Channels' to see what solace I might find, and... I heard 'expert' opinions ranging from "simply a long overdue market correction" to the much anticipated arrival of "the Apocalypse". Although no one actually posited this exact same view, my own opinion is that the truth lies somewhere between those two possibilities... Precisely where? Well, the 'experts' seem to lack consensus on that... Anybody feel better now?

DDT

[Rams]

The experts have answers for us... so we can at least take some comfort in that. Just yesterday I was tuning into one of those 'Business Channels' to see what solace I might find, and... I heard 'expert' opinions ranging from "simply a long overdue market correction" to the much anticipated arrival of "the Apocalypse". Although no one actually posited this exact same view, my own opinion is that the truth lies somewhere between those two possibilities... Precisely where? Well, the 'experts' seem to lack consensus on that... Anybody feel better now?

DDT

Yeah, I'm calling to see if I can still buy gold. 

Rams

[Jess from VA]

While there are many computer models, and many experts, I think the market is much like an exceedingly  menopausal and emotional human.... and just as logical and trustworthy.

I've been out for years.  I don't make nothin', but I don't lose nothin' either.  (go ahead and tell me about inflation and I won't listen) 

[DDT (12)]

When large company stocks get driven to high trading prices, other stocks will often rise too. "The big dog leads the pack".  Present high stock prices have created a fragile market.

Last week, Tesla announced that a $5 Billion offering of additional stock was coming.  That made all existing shares of Tesla less valuable to investors.  The resulting drop in the price of Tesla shares had many other stocks go down as well.  The big dog turned around and headed South.

A high-valuation market is easily upset.  A drop in value of one big stock triggers selling others, resulting in a drop of prices overall.

Don't forget those pesky algorithms! When prices start to move upward or downward, computer buy/sell programs are triggered and swiftly react... and a cascade is turned into a full-blown waterfall! Over-reaction is usually followed by another offsetting reaction, so... Is the Bull Market really over this time? Has a long-term Bear Market actually begun? Perhaps we should consult the politicians...? Those folks always have 'answers'... Of course, the only consensus there is strictly along party lines...

DDT