Another Franklin Fund Nosedive

The stock market has taken a serious dive in the last couple of weeks. The CBOE VIX reached a value of 25 today....which is almost double what it was 2 weeks ago. This is proving the old adage of "Go away in May, come back in September" to be true. Recent market volatility, coupled with more uncertainty from the Fed, and issues with the upcoming elections, are all combining to make this Summer one of the worst times for the markets in the past decade.
 

Don M. said:
The stock market has taken a serious dive in the last couple of weeks. The CBOE VIX reached a value of 25 today....which is almost double what it was 2 weeks ago. This is proving the old adage of "Go away in May, come back in September" to be true. Recent market volatility, coupled with more uncertainty from the Fed, and issues with the upcoming elections, are all combining to make this Summer one of the worst times for the markets in the past decade.
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This is why it drives me nuts when politicians propose phasing out social security and encourage working people to build their future retirement income through investing and saving.
 

Murrmurr said:
This is why it drives me nuts when politicians propose phasing out social security and encourage working people to build their future retirement income through investing and saving.
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I grew up with the notion of the three legged stool.

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Social Security was expected to provide 40% of that income and the other 60% was to come from pensions and personal savings.

The stool continues to get more and more wobbly as Social Security is being depleted and many companies move away from traditional pensions in favor of 401k plans.

If young people don’t save and invest they may end up sitting flat on their butts when they retire.

Very similar to the way things were before Franklin Roosevelt and the New Deal came along and changed retirement for our grandparents.

Even if you don’t buy into my doom and gloom, it’s better to have money and not need it than it is to need money and not have it. 😉
 
Aunt Bea said:
I grew up with the notion of the three legged stool.

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Social Security was expected to provide 40% of that income and the other 60% was to come from pensions and personal savings.

The stool continues to get more and more wobbly as Social Security is being depleted and many companies move away from traditional pensions in favor of 401k plans.

If young people don’t save and invest they may end up sitting flat on their butts when they retire.

Very similar to the way things were before Franklin Roosevelt and the New Deal came along and changed retirement for our grandparents.

Even if you don’t buy into my doom and gloom, it’s better to have money and not need it than it is to need money and not have it. 😉
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I agree, but today's working people don't know anything about investing (wisely), and due to inflation, at least half of them don't earn enough to save.

It's imperative that those 2 things change asap. Young people need to be educated about money management and financial security in school, and the feds need to get inflation under control.
 
mathjak107 said:
Yep
Tariffs placed on foreign goods here just make those goods more expensive to US

It’s like a tax on the American people

Most of his followers are economically ignorant

Or they are just clueless
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In response to tariffs, China decided to greatly lower the price of their exports to the US. Stupid move on their part (imo), but they don't want to lose the US market...they don't want to see American consumers turn to other products.

One of the goals of imposing tariffs is to re-start and diversify manufacturing in the US; to basically force the US to become self-reliant. It would be awesome if that happens, but you're right, there's an awful lot of ignorance going around.
 
Murrmurr said:
One of the goals of imposing tariffs is to re-start and diversify manufacturing in the US; to basically force the US to become self-reliant.
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And sadly that won't happen.
Even if someone started to build the infrastructure for factories and the like.. that takes $$$$$ and YEARS to do.
And then, the general American population will balk at paying more for said items, when those manufacturers have to pay American wages.
 
debodun said:
Another big drop for Franklin in March - almost $6000!
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Do you watch YouTube videos?

There's this YouTube channel called Clear Value Tax that's run by a very savvy financial adviser named Brian Kim. He talks about what's happening with stocks and other investments, such as home buying and selling, and he's really good at predicting market trends. Like, he knows how a thing that's happening in Asia or Europe or South America will likely effect the US economy, and he posts videos about it every day.

He posted one recently that explains why that drop happened, where it's going to go, and what holders should do.
 
That Lady in PA said:
And sadly that won't happen.
Even if someone started to build the infrastructure for factories and the like.. that takes $$$$$ and YEARS to do.
And then, the general American population will balk at paying more for said items, when those manufacturers have to pay American wages.
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Yeah, well....like I said.

You know, one of the reasons it "takes YEARS to do" is red-tape/over-regulation/bloated bureaucracy...that sort of thing. That has to change first, right? And I don't see that happening within the next few years.
 
I worked for two tech startups (manufacturing) over a period of five years. First you have to build and setup the facilities. Then train the workers. Then work out the manufacturing kinks - that was my department. And when everything is new, there are many, many, kinks. And it doesn’t help when you have competitors trying to do the same thing, but cheaper. Yes, years and years to get it smoothly running. Sometimes it fails.
 
Murrmurr said:
In response to tariffs, China decided to greatly lower the price of their exports to the US. Stupid move on their part (imo), but they don't want to lose the US market...they don't want to see American consumers turn to other products.

One of the goals of imposing tariffs is to re-start and diversify manufacturing in the US; to basically force the US to become self-reliant. It would be awesome if that happens, but you're right, there's an awful lot of ignorance going around.
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I'm afraid that by the time that happens a lot more people will be living on the street or dead.
 
I'm glad I don't have any stocks or bonds. But my defined benefit pension fund does so there's that. :oops:
 
Hopefully, everybody here has set an asset allocation ratio they can live with in good times and bad. That’s the only way for we common folk to ride out what is going on in the stock market. There is a lot of complicated trading going on via computers that we cannot hope to outrun or out guess in the short run.

Today’s fake news about tariff deals that was reported on several news sites, show us why we have no business being in the water at this time. Let the sharks eat each other first. Then we can slowly wade back in.

Nobody knows for certain or even a high probability of certainty what is going to happen over the next few months.
 
Brookswood said:
Hopefully, everybody here has set an asset allocation ratio they can live with in good times and bad. That’s the only way for we common folk to ride out what is going on in the stock market. There is a lot of complicated trading going on via computers that we cannot hope to outrun or out guess in the short run.

Today’s fake news about tariff deals that was reported on several news sites, show us why we have no business being in the water at this time. Let the sharks eat each other first. Then we can slowly wade back in.

Nobody knows for certain or even a high probability of certainty what is going to happen over the next few months.
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My portfolio was down by almost $20,000 just in the last two trading days of last week. More carnage is expected today. I have what might be considered an aggressive (or maybe moderately aggressive) portfolio, but enough that's not in equities and enough monthly income that I'll be able to ride it out. I've heard experts say that the best thing to do during times like this is nothing. I just really wish I had waited for this plunge to buy more shares with the money that was in my Roth. 😟
 
OneEyedDiva said:
My portfolio was down by almost $20,000 just in the last two trading days of last week. More carnage is expected today. I have what might be considered an aggressive (or maybe moderately aggressive) portfolio, but enough that's not in equities and enough monthly income that I'll be able to ride it out. I've heard experts say that the best thing to do during times like this is nothing. I just really wish I had waited for this plunge to buy more shares with the money that was in my Roth. 😟
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i am down 100k for the week and i was down to just 20% equities going in to the last two weeks .

i was up 600k last year and i had a bad feeling about what was coming and i wasnt about to hand it back
 
I’m just bumbling along.

I checked over the weekend and I was down about 6.5%.

I’m fortunate that I rarely dip into my investments to cover my expenses.

I’m concerned that the volatility will trigger significant capital gains as some of my actively managed mutual fund managers sell to protect gains.

Having to pay additional taxes on top of a drop in value will add insult to injury.

Definitely a first world problem.
 

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