Stocks trampled as Nikkei crashes 13%
It’s scary headlines like this: ‘trampled’, ‘crashes’, that put off less informed, risk averse individuals on lower incomes/ net worth, from investing in stocks.
It’s a shame, as ETFs, and hell, index funds if you must, outperform savings on a 3 year or even less horizon.
Yes, my portfolio dropped 7% this month. I’m still up 6% YTD and 13% in the last 12 months.
My horizon is well over 5 years. It would be an easy way to slow or even reduce my net worth if I were to put it all in a savings account.
Yet this is what a lot of folks do, frightened by scary bombastic headlines without a balanced long sighted story.
Current stock performance is very notable and newsworthy, yet lacks any narrative outside of short term performance.
This is mostly a reaction to the Bank of Japan raising interest rates to prop up the weak yen. Overall, the Nikkei is now back to where it was in October 2023, and still up almost 100% compared to its COVID lows in March 2020.
15 Circuit breaker trips in derivatives. Most in a single day ever I think, fun.
https://www.jpx.co.jp/english/markets/derivatives/scb-info/i...
Does this have anything to do with the Japanese Yen going up almost 13% relative to the USD in the last 30 days?
People saying this is nothing. Yes, it is not productive for a longterm investor to focus on individual days (and I'm not panic selling now) but 13% down is a lot. The point isn't that 13% in itself is the end of the world (I'm still up 40% this year) but rather that it signals that the market thinks things are going to get bad. And that could be bad for our portfolios (and our jobs, etc).
why do we have this sensationalist click-baity stock-market focused article on the HN front page?
1. Japanese yen became strong, hurting Japanese exports.
2. US job market and high recession probability. US is in early months of recession. according to Sahm rule recession indicator https://fred.stlouisfed.org/series/SAHMCURRENT
undefined
Why might this be affecting BTC?
https://x.com/WatcherGuru/status/1820355633008296324#m• NVIDIA $NVDA: -11% • Google $GOOGL: -11% • Apple $AAPL: -10% • Amazon $AMZN: -10% • Meta $META: -10% • Tesla $TSLA: -10% • Microsoft $MSFT: -9%Nice! Going to be looking for volatility to sell...
Lots of panicked investors gonna be rushing for insurance tomorrow. :DDD
So many ppl made a lot of money at COVID dip in Mar-2020, I wonder how many more will make $$$ in this dip.
Its only given up 10 months of gains?
In a 30-40 year investment span its a minor blip.
Call me when WW3 kicks off (maybe Wednesday?) and then we'll talk about a crisis.
Surely this'll trigger unwinding of the options dispersion trades that have been rumored to have been building up.
Why would a high amount of trades trigger circuit breakers? That is just network traffic not power load, no?
nobody yet mentioned the Shiller CAPE yet, I think this discussion could benefit from some valuation talk.
People are unwinding trades because the BoJ put up interest rates as well...!
See Also: Japan stocks plunge as much as 7% as Asia shares extend sell-off (5 hours ago) https://news.ycombinator.com/item?id=41157605
Another volatile month, only to end higher in the end
[dead]
[flagged]
