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submitted 1 week ago by breakfastmtn@lemmy.ca to c/news@lemmy.world

US stocks were sharply lower Friday as investors digested souring consumer sentiment and inflation data that showed an uptick in one of the Federal Reserve’s key gauges, underscoring the delicate state of the economy as businesses brace for President Donald Trump’s tariffs.

The Dow tumbled 750 points, or 1.77%, on Friday. The broader S&P 500 fell 2.1% and the Nasdaq Composite slid 2.8%.

. . .

Wall Street was also grappling with Trump’s announcement on Wednesday of 25% tariffs on all cars shipped into the US, set to go into effect April 3. Trump also announced tariffs on car parts like engines and transmissions, set to take effect “no later than May 3,” according to the proclamation he signed.

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[-] Ironfist@lemmy.ca 128 points 1 week ago
[-] Maeve@kbin.earth 67 points 1 week ago

Billionaires and corporations are absolutely winning, in the foreseeable future.

[-] mindaika@lemmy.dbzer0.com 7 points 1 week ago

While yes, the stock market going down is the opposite of “corporations winning”

[-] uuldika@lemmy.ml 23 points 1 week ago

the pie is getting smaller but the oligarchs are getting bigger slices.

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[-] Asetru@feddit.org 96 points 1 week ago* (last edited 1 week ago)

We also believe the dynamic macro environment has contributed to a more cautious consumer

Am I getting this right? Is this double speak for "the government is fucking up so badly, people try to save some wealth for the inevitable fall of society"?

[-] Wilco@lemm.ee 38 points 1 week ago

I think that is what the main point is. Brace for extremely hard times.

[-] courageousstep@lemm.ee 9 points 1 week ago

I look forward to mainstream media using real words with real meaning, again.

[-] empireOfLove2@lemmy.dbzer0.com 54 points 1 week ago

Looks like I made the right choice pulling most of my 401k out of stock/blended funds and into stable bonds.

[-] Semi_Hemi_Demigod@lemmy.world 88 points 1 week ago

Looks like I made the right choice by not saving money at all and working until I die.

[-] SpaceNoodle@lemmy.world 65 points 1 week ago

Looks like I picked the wrong week to quit sniffing glue

[-] SilverCode@lemm.ee 18 points 1 week ago

At least you don't have a drinking problem

[-] Lanske@lemmy.world 8 points 1 week ago

It's going well with the 'Make America Great Again' over the other side of the pond

[-] Wilco@lemm.ee 8 points 1 week ago

These are the type of comments I came to read on Lemmy.

[-] hemmes@lemmy.world 1 points 1 week ago

Looks like I picked the wrong week to quit amphetamines

[-] empireOfLove2@lemmy.dbzer0.com 19 points 1 week ago* (last edited 1 week ago)

Bro just quit buying avocado toast and pull yourself up by them bootstraps, you're just not working hard enough bro get on the grind and then you can maybe retire in a slightly larger cardboard box

[-] wirebeads@lemmy.ca 4 points 1 week ago

Maybe even be able to afford the ritzier corrugated cardboard boxes everyone’s talking about?

[-] partial_accumen@lemmy.world 23 points 1 week ago* (last edited 1 week ago)

Looks like I made the right choice pulling most of my 401k out of stock/blended funds and into stable bonds.

You've made HALF the right choice. You "sold high", which is great!

However, the harder part is knowing when to go back in for the "buy low" part. If you're out of the market when that recovery occurs you'll be missing out on those gains. I've look at historical recoveries and can tell there is no way I'll know when that time is. I will guess wrong every time.

I hope you're better at it than I am.

[-] Sc00ter@lemm.ee 8 points 1 week ago

Most people arent playing the market daily. Especially in something like a 401k. You dont need to time the bottom. We're already in a correction, and its still going. You can wait until the market recovers, and as long as you buy back at a price lower than what you sold, call it a win.

Dont chase, "what could have been" because youll always feel like you lost

[-] partial_accumen@lemmy.world 4 points 1 week ago

You can wait until the market recovers, and as long as you buy back at a price lower than what you sold, call it a win.

Right, thats the magic, but its not that easy. No one knows when that will occur.

You have to accurately predict both a high enough point to profit, but also, and much harder, put the money back in when you decide its "low enough". Look at historical recoveries. You said it yourself, most people aren't playing the market daily. The folks that are pulling out may miss the recovery by weeks or more because they're not watching. I know I don't watch that closely, but I also don't try to time the market.

Dont chase, “what could have been” because youll always feel like you lost

Isn't that what trying to time the market is doing? The folks that are pulling out to put in later are attempting to time the market.

I'm arguing the opposite. "Time in the market beats timing the market."

[-] Sc00ter@lemm.ee 2 points 1 week ago

We have a lot of the same points, but what im trying to drive home is that, "buy low, sell high," doesnt mean, "buy the lowest, sell the peak." Markets in correction right now, its generally trending down. Potentially will turn bear market. You dont need to follow daily to know that. Now is as good a time to sell as last week, or the peak. You didnt miss it.

When it goes down more, you dont need to see the bottom. You can wait until it hits recovery or bull market even, and buy back. That point will likely be lower than where you sold even if its not the lowest. You dont need to buy the bottom, but buying lower than you sold is a win.

[-] partial_accumen@lemmy.world 2 points 1 week ago

When it goes down more, you dont need to see the bottom.

So when are you recommending buying back in with your strategy? 1 point lower than you sold for? 10? 100? 1000?

You can wait until it hits recovery or bull market even, and buy back. That point will likely be lower than where you sold even if its not the lowest. You dont need to buy the bottom, but buying lower than you sold is a win.

Unless you miss that point, and you have to buy back in higher than you sold for, and it could be years before its ever low enough for you to "buy back in low than you sold".

If you buy back in when its higher than your arbitrary threshold, but then drops back down again the next day, do you sell again?

[-] Sc00ter@lemm.ee 1 points 6 days ago

when we hit recovery or bull market

Those are technical terms. Thats when i recommend buying back in.

[-] partial_accumen@lemmy.world 1 points 6 days ago

Those are only defined for a time period historically. When those time periods have those names, you're at the point I'm talking about where you may have missed the entry point to buy in cheaply. Nobody says, with any faith or knowledge, "this is it! this is the recovery starting right now!".

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[-] alvvayson@lemmy.dbzer0.com 8 points 1 week ago

Timing the exact top and bottom is impossible, but you can always sell at an all-time high and buy at a 52 week low.

Personally, I find it more effective for myself if I frame it in terms of "owning the most shares" instead of "making the most dollars".

If I started with 100 shares and now have 200 shares, I consider that a win, even if the 200 shares together are worth less than the 100 shares were at one time.

[-] partial_accumen@lemmy.world 9 points 1 week ago* (last edited 1 week ago)

Timing the exact top and bottom is impossible, but you can always sell at an all-time high

An all-time high? So on point over the prior record and you sell?

and buy at a 52 week low.

I'm not understanding your strategy here. What are you accomplishing by putting your money back into the market at the dollar figure equal to the lowest value in the last year (52 weeks)? Especially if you sold at one point over the prior record (the all time high) you could be out of the market for years while stocks are on a rapid increase. The last 2 years of the S&P500 were both north of 23% returns back to back. Using your method you would have sold sometime in 2022 losing all those HUGE gains.

What if the recover occurs prior to stocks ever hitting the 52 week low? You'd still be out of the market and will have missed the recovery.

Personally, I find it more effective for myself if I frame it in terms of “owning the most shares” instead of “making the most dollars”.

If I started with 100 shares and now have 200 shares, I consider that a win, even if the 200 shares together are worth less than the 100 shares were at one time.

This confuses me even more. Number of shares is completely irrelevant. Stock splits double shares (and half values), a reverse stock split would double value (but half number of shares). I mean, if you're just interested in number of shares, you do you, but most people use stocks as an investment vehicle where the value of those stocks is primary value (voting rights being a second value but most people don't care about that).

[-] alvvayson@lemmy.dbzer0.com 1 points 6 days ago

If you can't even understand that I am obviously not including things like stock splits, then I don't think my comment was intended for you.

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[-] independantiste@sh.itjust.works 5 points 1 week ago

You can never time the lowest point. What you can do however is guarantee yourself a massive gain over the next few years when the stocks inevitably go back to pre-trump levels by buying it now, which is already much lower than it was 2 months ago

[-] partial_accumen@lemmy.world 2 points 1 week ago

You can never time the lowest point.

You're cheating this exercise. We were talking about properly guessing when to buy back into the market, and you've predicated your solution with this:

What you can do however is guarantee yourself a massive gain over the next few years when the stocks inevitably go back to pre-trump levels by buying it now

This presupposes you've already sold to a cash position prior to the fall. So that would be accurately timing the market at the best time to sell off. If you sold even a month ago, you would have already incurred a loss from the highest peak value. You're arguing against the parent post about selling off all stocks to a cash/bond position today. You're both depending on a close-to-perfect timing of the market. He's depending on buying in at the low, you're depended on knowing when the high was to sell.

Also, I think its sound thinking to always be suspicious of anyone's claim saying "What you can do however is guarantee yourself a massive gain" when talking about investments. There is no such thing as a guarantee in investing.

[-] CaptDust@sh.itjust.works 5 points 1 week ago

The right time to go back in is whenever this admin is done, there is no "low" when the floor keeps falling out.

[-] partial_accumen@lemmy.world 6 points 1 week ago* (last edited 1 week ago)

That sounds like a rational answer. Stock markets are not rational. Also, who's to say the next admin isn't just a carbon copy of this one?

[-] Magister@lemmy.world 4 points 1 week ago

About Jan 21st, I moved 50% to "international developed market", there is 0 stock from USA in the fund.

https://finviz.com/map.ashx?t=etf&st=ytd

[-] charade_you_are@sh.itjust.works 33 points 1 week ago

wow, pandemic numbers without a pandemic. trump rules...!

[-] match@pawb.social 16 points 1 week ago

imagine what it'll look like when the second pandemic hits

[-] griff@lemmings.world 11 points 1 week ago

Stable genius getting results!!!

[-] PattyMcB@lemmy.world 10 points 1 week ago

OMG... Trump was lying about fixing the economy? Please say it isn't so!

[-] queermunist@lemmy.ml 10 points 1 week ago

since 2023

So what's the explanation for why stocks dropped so much in 2023?

[-] crusa187@lemmy.ml 8 points 1 week ago

Inflation was part of it, also the Russian incursion into Ukraine was sparking fears of ww3.

The actions of this admin are reigniting those fears and we’re witnessing similar results in the market.

[-] DrunkEngineer@lemmy.world 2 points 1 week ago

2022 4th quarter was the big drop, 2023 was small decline. The reason was higher than expected inflation, with expectation of interest rate hikes by the Fed.

[-] HubertManne@piefed.social 7 points 1 week ago

Its a bit higher than the low it hit two weeks backish on the 13th. Its significant because the bit of recovery petered out and in the past little false recoveries like this was the stair step down that made it into a truly crashing market. It did not so far though fall below the low of the recent drop but it is pretty close to it.

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[-] Maeve@kbin.earth 2 points 1 week ago

as businesses brace for ~~President Donald Trump’s tariffs.~~ cheap stock buybacks

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this post was submitted on 28 Mar 2025
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