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It's official: Stocks are in a Bear Market


MickinMD

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As the Stock Market is getting whacked today, down 2.3%, the S&P 500 is down over 10% for 2022 and that makes it an official Correction: a Bear Market.

Personally as a net buyer of stocks (small automatic monthly purchases), I look at it this way:  the current values in the stock market are not going to affect by much what prices will be in five years, so it's an advantage to me to pay less for stocks now that I'll likely still own in 5 years.  The market is still overpriced compared to the long-term average P/E ratios because bonds still pay so little.

I've owned stock in my biggest holding since 1993.  On the 25th of the month or next business day, Abbott Labs Direct Stock Purchase Plan (DSPP or DRIP) takes $25 out of my checking account to invest in ABT stock with no fees: a small amount but it builds up over time!  Right now, the stock price is $121.59.  At the end of December, the price was $140.74 (up over 30% for 2021).  So I'll be getting a 14% sale price if the current price holds tomorrow and it will have no effect on Abbott's stock price a year or so from now!

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Getting crushed today.

And buying.

Tip:  SQ is down to about $110, caught in a firestorm of trends with little fundamental reasoning.  1 year target has been dropped to about $225 by many analysts.  Super buy point now.  I bought some last week (yeah, down a bunch since then) as a short term.  I'll get about 20%, then sell it (I'm overweight in it), using my early lots and get some of the capital gains tax done before I retire.

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It goes up and down.  The market staged an enormous reversal today.  For those that panicked and sold, well, bad timing.  For most people, if you choose to invest you are looking at long term not short term.  Just mind your tolerance levels and adjust as needed.  

During the 2020 downturn, it was gut wrenching how much our holdings fell.  I just stayed the course and told H not to look at it.   It reversed and we reaped the rewards of buying during that period.  

I am sure many of us remember 2008-2009.  If the market does drop heavily and there is no more value in stocks, then we will have much bigger fish to fry than worry about AMZN.  

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@MickinMD   not (yet?)  a Bear market. 20% down is a Bear. We are only in correction phase. It needs to go down another 10%

I gifted son of Scrapr his Roth contribution recently. Once before year end & once last week. Didn't "time" the bottom but that's life. In 40 years I'll be gone & he'll be happy with the buy

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3 hours ago, 12string said:

Getting crushed today.

And buying.

Tip:  SQ is down to about $110, caught in a firestorm of trends with little fundamental reasoning.  1 year target has been dropped to about $225 by many analysts.  Super buy point now.  I bought some last week (yeah, down a bunch since then) as a short term.  I'll get about 20%, then sell it (I'm overweight in it), using my early lots and get some of the capital gains tax done before I retire.

Am getting crushed.

The stock market is less rational, more emotional at a faster speed than even 10 yrs. ago or so .

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And I don't think the threat of Russian invasion into Ukraine won't affect much certain types of stocks for certain industries at all.  Especially for those with large customer markets in North America, most of Europe, etc.

 

Early in the afternoon, the Dow was off by more than 1,000 points, or about three per cent, and the tech-heavy Nasdaq was faring even worse as investors worried about the prospect of war in Ukraine.

"What really sparked the sell-off today is the fact that we seem to be marching inexorably towards a full-scale invasion of Ukraine by Russia," Dennis Mitchell, CEO of Toronto-based investment firm Starlight Capital, said in an interview.

 

Canadian shares were not exempt from the sell-off, as the benchmark Canadian index was on track for its worst day in months, down more than 600 points, or three per cent at one

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One thing for certain I'm glad I bought and then 9 months later sold a company stock, when company wanted to retract their IPO listing (after being publicly listed in late 2020), and in addition, charge higher transactional fees on their client services. Which then gets passed to consumer.

It made no long-term sense since it's a company providing niche services to a nearly captive narrow client base.

So I made 7K..in my decision. And I don't care if they get valued even more. Their product-service will remain narrow.  (it's a service to legal and real estate sector)

 

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