Should I stay or should I run like crazy?
Investors no doubt have plenty of questions after Wall Street’s Wednesday meltdown.
The selloff may have legs, judging by the looks of things this morning, while potential catalysts pile up—bond yields, the trade war, global growth worries, earnings jitters, your taxi driver telling you to sell.
See Also What’s Google+ and How Do I Know if I Have an Account × But maybe none of that should matter to future retirees, who may want to recall some evergreen advice from investing legend Warren Buffett: “Be fearful when others are greedy and greedy only when others are fearful.”
That leads us to our call of the day , from Reformed Broker’s Josh Brown, who says savvy U.S. investors are not for scaring.
“Americans have accumulated $28.3 trillion in retirement assets, 19% of which is in 401(k) accounts ($5.3 trillion). There are 550,000 plans and 54 million participants. These dollars are coming in every month, the lower the prices for stocks, the better,” said Brown in a wee-hours tweet-rant , as he adds: “F****ing bring it.”
Brown goes on to say that with 160 million Americans in the workforce and 80% of them under 54, “they’re in the accumulation phase of their lives. I know you want them to panic for the clicks, but they won’t. They are automated buyers of dips. It‘s the best thing for them.”
Now you will see imbeciles cite demographics as a secular negative. They’ll focus on the withdrawal of capital from retirement accounts for the 7.6 million US workers aged 65 to 74.
Well, where the hell do you think that money ends up being spent when it’s withdrawn, genius?
— Downtown Josh Brown (@ReformedBroker) October 11, 2018 Understandably, not everyone may be feeling so Buffett-brave after Wednesday’s drama. Blogging for CrackedMarket , Jani Ziedins says those losing sleep over this fresh volatility may want to trim position sizes to something that is more manageable.
Read: How much of your 401(k) retirement plan is affected by market volatility?
“The key to surviving the market is keeping your head when everyone else is losing theirs. Do whatever is necessary to reclaim your perspective. If that means dialing back your position sizes, then that is what you need to do,” says Ziedins.
So if you think a 0.25% bump in Treasury rates will clobber the economy, then sell and lock-in profits, but if you don’t think the economy is “teetering on the verge of a recession,” ignore the noise and wait for prices go up, he says.
As for Ziedins himself: “If I wasn’t already fully invested in this market, I would be buying this dip with both arms.”
Read: Why the stock market ushered in its worst start to a quarter in about 2 years
The Quote: . @POTUS on Dow drop: “The problem in my opinion is Treasuries and the Fed. The Fed is going loco, and there’s no reason for them to do it.” @foxnewsnight pic.twitter.com/ioip364rtx
— Fox News (@FoxNews) October 11, 2018 “The Fed is going wild. I don’t know what their problem is, but they’re raising interest rates and it’s ridiculous.”—That was U.S. President Trump on Fox News late Wednesday, after making similar comments at a rally in Pennsylvania earlier in the day.
Some say, he’s right, and the Fed needs to cool it , while Mohamed El-Erian says don’t count on a market rout derailing the Fed. In any case, here’s what Trump’s tirade means for the markets
The market The Dow DJIA, -1.26% and S&P SPX, -1.36% traded modestly lower in early afternoon action, while the Nasdaq COMP, -0.71% edged into positive territory.
Crude US:CLU8 is down, and the dollar DXY, -0.44% is off, with gold US:GCU8 up. The yield on the 10-year Treasury note TMUBMUSD10Y, -0.77% has eased back to 3.17%.
Check out the Market Snapshot column for the latest action.
Around the globe , bears mauled Europe SXXP, -1.98% and Asia, where the Shanghai Composite SHCOMP, -5.22% skidded over 5% and the Nikkei NIK, -3.89% dropped near 4%.
Tencent is down over 7% today, poised for its worst drop of the year and biggest decline since October 2011. pic.twitter.com/p2EAPc4BnB
— Steven Russolillo (@srussolillo) October 11, 2018 Not to be left out, bitcoin BTCUSD, -4.89% and other cryptocurrencies are getting pummeled.
Read: Dr. Doom says bitcoin represents the ‘mother of all bubbles’
The chart Here’s another look at what happened to China as that market just tanked:
And there’s been a bit of a surprise winner, as the Turkish lira USDTRY, -2.6576% is socking it to the dollar and the euro EURTRY, -2.0753% in the face of all this red flying around:
The buzz While POTUS tosses shade at the Fed, it doesn’t seem that Treasury Secretary Steven Mnuchin feels exactly the same. “Markets go up. Markets go down,” he said in a Bali interview on the sidelines of an IMF meeting.
Some big tech names are taking more heat, with Amazon AMZN, -2.60% down 1.9%, Apple AAPL, -0.39% Apple edged higher after scooping up engineers from European chip maker Dialog DLG, +25.32% in a $600 million deal .
Shares of Square Inc. SQ, -1...