Dow closed below 17,000 yesterday....

[libertarian4321]

Larry Hite (started Mint with George Soros, before that he managed bands. He joked that he was the only one he knew who left music to pursue a career in finance)

Richard Dennis started with $1600 he borrowed from his family. His seat on the exchange cost $1200 leaving him $400 to trade with.

The list goes on endlessly. Its not as hard as you all think. Like anything else it just takes work and dedication. Aptitude certainly doesnt hurt.

Except that neither of these guys is listed as a billionaire by Forbes.

So the "endless" list just shrank from 2 to ZERO.

http://www.forbes.com/billionaires/list/18/#version:static

[LennStar]

Wooohaa!

I dont know about you Yankees, but here in good ol' Germany the DAX today is at currently -3.77 (correction: 5 minutes later more then 4%) and still dropping. And that after it already dropped from 11500 in the last month. If that isnt a rally, then what?

[CorpRaider]

WHY DID THE STOCK MARKET GO DOWN TODAY?

Why Trade Futures? Diversify your portfolio and maximize capital.
Wall Street Journal: Tensions in Ukraine and the Crimean peninsula
Yahoo Finance: Russians
Fox Business: Obamacare
CNBC: It didn’t sell off at all, it was actually a reverse rally
Forbes: Taxes are too high
Huffington Post: Taxes are too low
Fox News: Gay marriage
Motley Fool: Sign up here to find out!
Bloomberg TV: The opposite of whatever CNBC said.
Quartz: Chinese shadow-banks
FT Alphaville: Chinese derivatives
Washington Times: Fallout from explosive Benghazi revelations
StockTwits: Here’s a chart
USA Today: Let’s take a poll
DealBook: lack of M&A
Zero Hedge: Better question, why would it have gone up?
MSNBC: I’m not sure I’m comfortable with the term “stock market” per se…
Business Insider: Ten reasons, actually (view as single page?)
Financial Times: Please take a moment to register and accept cookies
MarketWatch: 1929
The Reformed Broker: More sellers than buyers
Buzzfeed Business: It’s like that time on Party of Five when Charlie was giving Julia the silent treatment…
Reuters: HFT
Barron’s: Valuations got ahead of themselves
Investors Business Daily: drop in momentum. And record deficits.
History Channel: Ancient Aliens

Stolen from an article back in 2013 http://thereformedbroker.com/2014/03/13/why-did-the-stock-market-sell-off-today/

LOL!

[GuitarStv]

I generally see a forward trend similar to the 1970s unfolding.

Lord, I hope not. I couldn't stand the music, and I look terrible in earth tones.

You think today's music is any better?

I don't even listen to today's music. But I don't want to go back to disco or "Afternoon Delight."

Led Zeppelin, Queen, Black Sabbath, Deep Purple, Bob Marley, James Brown, Pink Floyd, Parliament Funkadelic, Curtis Mayfield, The Isley Brothers, David Bowie, The Sex Pistols, The Clash, The Rolling Stones . . . all were in their heyday during the 70s.  You're talking about some of the best years of rock, funk, early metal, reggae, and pioneering punk.  A return to 70s style music would make GuitarStv very happy.

[fb132]

I generally see a forward trend similar to the 1970s unfolding.

Lord, I hope not. I couldn't stand the music, and I look terrible in earth tones.

You think today's music is any better?

I don't even listen to today's music. But I don't want to go back to disco or "Afternoon Delight."

Led Zeppelin, Queen, Black Sabbath, Deep Purple, Bob Marley, James Brown, Pink Floyd, Parliament Funkadelic, Curtis Mayfield, The Isley Brothers, David Bowie, The Sex Pistols, The Clash, The Rolling Stones . . . all were in their heyday during the 70s.  You're talking about some of the best years of rock, funk, early metal, reggae, and pioneering punk.  A return to 70s style music would make GuitarStv very happy.

I agree, now were stuck with Bieber, One Direction, Nicki Minaj and all that crap....Personally the last great decade in music was the 90's. After 2000, it went all downhill.

[Rollin]

WHY DID THE STOCK MARKET GO DOWN TODAY?

Why Trade Futures? Diversify your portfolio and maximize capital.
Wall Street Journal: Tensions in Ukraine and the Crimean peninsula
Yahoo Finance: Russians
Fox Business: Obamacare
CNBC: It didn’t sell off at all, it was actually a reverse rally
Forbes: Taxes are too high
Huffington Post: Taxes are too low
Fox News: Gay marriage
Motley Fool: Sign up here to find out!
Bloomberg TV: The opposite of whatever CNBC said.
Quartz: Chinese shadow-banks
FT Alphaville: Chinese derivatives
Washington Times: Fallout from explosive Benghazi revelations
StockTwits: Here’s a chart
USA Today: Let’s take a poll
DealBook: lack of M&A
Zero Hedge: Better question, why would it have gone up?
MSNBC: I’m not sure I’m comfortable with the term “stock market” per se…
Business Insider: Ten reasons, actually (view as single page?)
Financial Times: Please take a moment to register and accept cookies
MarketWatch: 1929
The Reformed Broker: More sellers than buyers
Buzzfeed Business: It’s like that time on Party of Five when Charlie was giving Julia the silent treatment…
Reuters: HFT
Barron’s: Valuations got ahead of themselves
Investors Business Daily: drop in momentum. And record deficits.
History Channel: Ancient Aliens

Stolen from an article back in 2013 http://thereformedbroker.com/2014/03/13/why-did-the-stock-market-sell-off-today/

Well done!

[TheInsuranceMan]

Off 700 pts overnight...

[protostache]

And we're off with a bang: 15,406.

[wenchsenior]

:rubs hands together in anticipation of an entertaining few days:

I doubt this will stick long, though, since there's no signs of the U.S. market going into recession.

[Iron Mike Sharpe]

I generally see a forward trend similar to the 1970s unfolding.

Lord, I hope not. I couldn't stand the music, and I look terrible in earth tones.

You think today's music is any better?

I don't even listen to today's music. But I don't want to go back to disco or "Afternoon Delight."

Led Zeppelin, Queen, Black Sabbath, Deep Purple, Bob Marley, James Brown, Pink Floyd, Parliament Funkadelic, Curtis Mayfield, The Isley Brothers, David Bowie, The Sex Pistols, The Clash, The Rolling Stones . . . all were in their heyday during the 70s.  You're talking about some of the best years of rock, funk, early metal, reggae, and pioneering punk.  A return to 70s style music would make GuitarStv very happy.

I agree, now were stuck with Bieber, One Direction, Nicki Minaj and all that crap....Personally the last great decade in music was the 90's. After 2000, it went all downhill.

Uh, you are crazy.  There is great music being made today:

Dawes, Jason Isbell, Ryan Bingham, Sturgill Simpson to name a few...

[Bric-a-Brac]

I am experiencing significant anxiety because I pulled the trigger a month ago and today is my last day of work.

OTOH, I am elated because I pulled the trigger a month ago and today is my last day of work!

I'm not changing my plans at all.  I can live on cash that's earning 2% for a couple of years.  If the market is in the toilet at that point I'll just get job.  That two year vacation will do me good.

The parts that hurt are that a) I won't be able to buy at a discount and b) I've had a run of bad luck lately that's making me a feel a bit jinxed.  I'm about to embark on a semi-dangerous adventure in retirement, so my confidence is a bit shaken.

[3Mer]

I am experiencing significant anxiety because I pulled the trigger a month ago and today is my last day of work.

OTOH, I am elated because I pulled the trigger a month ago and today is my last day of work!

I'm not changing my plans at all.  I can live on cash that's earning 2% for a couple of years.  If the market is in the toilet at that point I'll just get job.  That two year vacation will do me good.

The parts that hurt are that a) I won't be able to buy at a discount and b) I've had a run of bad luck lately that's making me a feel a bit jinxed.  I'm about to embark on a semi-dangerous adventure in retirement, so my confidence is a bit shaken.

Is your last paycheck going to go toward any investments?

[Bric-a-Brac]

I am experiencing significant anxiety because I pulled the trigger a month ago and today is my last day of work.

OTOH, I am elated because I pulled the trigger a month ago and today is my last day of work!

I'm not changing my plans at all.  I can live on cash that's earning 2% for a couple of years.  If the market is in the toilet at that point I'll just get job.  That two year vacation will do me good.

The parts that hurt are that a) I won't be able to buy at a discount and b) I've had a run of bad luck lately that's making me a feel a bit jinxed.  I'm about to embark on a semi-dangerous adventure in retirement, so my confidence is a bit shaken.

Is your last paycheck going to go toward any investments?

Yeah, that was the plan.  I'll have about $8k in excess cash that I was planning on putting in. 

[mlejw6]

I am experiencing significant anxiety because I pulled the trigger a month ago and today is my last day of work.

OTOH, I am elated because I pulled the trigger a month ago and today is my last day of work!

I'm not changing my plans at all.  I can live on cash that's earning 2% for a couple of years.  If the market is in the toilet at that point I'll just get job.  That two year vacation will do me good.

The parts that hurt are that a) I won't be able to buy at a discount and b) I've had a run of bad luck lately that's making me a feel a bit jinxed.  I'm about to embark on a semi-dangerous adventure in retirement, so my confidence is a bit shaken.

I have faith that you'll pull through just fine, random stranger of the interwebs.

[Bric-a-Brac]

I am experiencing significant anxiety because I pulled the trigger a month ago and today is my last day of work.

OTOH, I am elated because I pulled the trigger a month ago and today is my last day of work!

I'm not changing my plans at all.  I can live on cash that's earning 2% for a couple of years.  If the market is in the toilet at that point I'll just get job.  That two year vacation will do me good.

The parts that hurt are that a) I won't be able to buy at a discount and b) I've had a run of bad luck lately that's making me a feel a bit jinxed.  I'm about to embark on a semi-dangerous adventure in retirement, so my confidence is a bit shaken.

I have faith that you'll pull through just fine, random stranger of the interwebs.

Aww, that's just what I needed.  Just rub my head a little and all will be well. :)

[Slee_stack]

I buy regularly throughout the year, but I also keep some 'emergency' (fun) money in an online account (which I know is foolish).

However, its fun 'investment' money and I used half of it to buy funds twice in the past week and will likely buy a third time today. 

I'm being irrational trying to time the local nadir.  Its still more fun then just buying material crap.

[Seppia]

I buy regularly throughout the year, but I also keep some 'emergency' (fun) money in an online account (which I know is foolish).

However, its fun 'investment' money and I used half of it to buy funds twice in the past week and will likely buy a third time today. 

I'm being irrational trying to time the local nadir.  Its still more fun then just buying material crap.

LOL I do exactly the same.
I know it doesn't work, I know it's suboptimal, I know if I stashed everything and absolutely everything I had as soon as I had it I would be better off but I can't help it.
There's a small part of "emergency cash" that I always keep "just in case there's a big drop".

I think psychologically it's an unconsciously self built safety belt about stupid panic moves, sort of
"Hey we just had a huge drop and my net worth has dropped 40% but I was able to throw $10k at low low prices so YAY!"

Since I have still to lose a single penny this year (I was extremely lucky and sold half of my Amazon stock and bought some P&G to rebalance so I realized a pretty big long term gain) I'm waiting still.

[AZDude]

I'm the same. The vast majority of my investing is boring index funds, but I keep a few hundred bucks to play with occasionally.

[woodnut]

I haven't recalculated, but I'm sure my FIRE date moved out compared to the last time I checked.  But it is only one data point in time, and will change again.   It doesn't matter anyway.  I'm still accumulating.  Some company RSU's vested last Monday and I immediately sold.  The transfer cleared all the banks today, so I just bought some more VTSAX today.  I will take this Friday's bonus payout and buy more.

I made my first mutual fund investment of $1000 in Oct 1986.  I never added more principal, only reinvested the proceeds and I still have it today.  That initial investment saw Black Monday, the early 90's recession, the tech bubble crash, and the Great Recession.  After this past week's action, it closed right around $23K today.  It's not in a low fee Vanguard fund either.  The only reason I hold onto it, is to use it as an example for my kids.  It sucks hitting the update button in Quicken and watching $26K, $14K, etc vanish from your stash for a week straight.  But someday, today will be Oct 1986.  If I'd only invested $100K instead of $1000 in 1986.

[WGH]

Account dropped $10,000 in two days. My reaction?

WOO HOO FIRE SALE!

Time + Dollar Cost Averaging = $$$$$

[NumberJohnny5]

Was looking at buying a houseboat. Would sell current house of course. Had most of our funds in stocks. Stocks dropped. Thought about it for a bit. Stocks dropped some more. Dumped the rest of the cash we had into the Vanguard account.

[Bateaux]

I'm down $100,000 from the market high.  What was my first thought of the day?  I love my family and friends.  The sunshine is beautiful and it's going to be a wonderful day.  That's the spirit of the Mustache!  I'm down less than 10% of my wealth and I'm buying stocks at a discount.  It's going to be great day!

[Dicey]

I haven't pulled the trigger yet, because I keep wondering if this sale is going to have further markdowns...FWP for sure.

[Moostache]

Possibly but unless someone sees a squirrel the stage is set for a big rebound today. I wish there had been some extra money sitting around yesterday that I could have plugged in...

I haven't pulled the trigger yet, because I keep wondering if this sale is going to have further markdowns...FWP for sure.

[ender]

Possibly but unless someone sees a squirrel the stage is set for a big rebound today. I wish I there had been some extra money sitting around yesterday that I could have plugged in...

I haven't pulled the trigger yet, because I keep wondering if this sale is going to have further markdowns...FWP for sure.

woot predictable irrationality!

[wenchsenior]

OMG I'm such an investing genius!  I 'timed' the market correctly with an automated buy yesterday. Sweet!

[Digital Dogma]

Im very happy about the latest correction. Ive accelerated my purchases this month.

And better yet, my SO has a good chunk of cash sidelined for dollar cost averaging into VTSAX monthly and we were able to execute a trade to double her holdings, halfing the average purchase price between high 17800s and Mondays closing price.

Im pleased, now I need to get back to overtime so I can afford it :) (in my own head, Im doing just fine in reality).

[Bracken_Joy]

We increased our weekly contributions to DH's tIRA. That way I get all the fuzzy joy of "market timing", without giving up our dedication to Dollar Cost Averaging.

[nobodyspecial]

Slightly off topic but - why does anyone give the DOW any credence at all ?
It seems a totally ridiculous index, companies are added on a whim, they aren't weighted by market cap, it's not even an average - just the sum of the share prices !

[sol]

Slightly off topic but - why does anyone give the DOW any credence at all ?

[Cougar]

I haven't pulled the trigger yet, because I keep wondering if this sale is going to have further markdowns...FWP for sure.

IMO, this is a sucker's rally. The bull trend has been broken by the charts I see and august and September are typically the worst months of the market.

Now, the poster here named Sol says you can't time the market and that's true but chart trends and historic data are methods used by many. I shorted some to keep my account hedged against losses august 3rd, it's got to go up another 700 points for that to be a loss.

[Jersey Brett]

Down into November or further with 17-50% correction from the top ($18351), So 12% already.
Sharp 3-8 day rallies in between.

Just an educated guess. Don't sell the kids or nothing.

Good Luck!

[bacchi]

IMO, this is a sucker's rally. The bull trend has been broken by the charts I see and august and September are typically the worst months of the market.

Now, the poster here named Sol says you can't time the market and that's true but chart trends and historic data are methods used by many. I shorted some to keep my account hedged against losses august 3rd, it's got to go up another 700 points for that to be a loss.

Nah, it's a sucker's drop. The economy is still strong and numerology and neofibonacci charts indicate that there will be a rise interspersed with some drops.

[beltim]

Slightly off topic but - why does anyone give the DOW any credence at all ?
It seems a totally ridiculous index, companies are added on a whim, they aren't weighted by market cap, it's not even an average - just the sum of the share prices !

Sol hit a major point with tradition, but what I always find interesting is that despite the methodological improvements of the S&P 500, the Dow tracks the S&P 500 almost unbelievably well over the long term.  If you just want a general number for "the market" then the Dow still works just fine.  It wasn't until the advent of computers that using the S&P 500 made sense, and even now, more people are familiar with Dow benchmarks than S&P benchmarks.  So if you want really long-term price series, the Dow is still the place to go.

[gimp]

I have to confess: I'm a little excited about this.

Not because stocks are on sale. Well, that too, of course, that makes it exciting too, so I've been buying.


The really exciting thing is that I only started learning and caring about this in ~2013 (age 22-23, still in college but almost done), and only started investing once I graduated and worked full time. Only a bit over a year. Now, this is relevant because I consider myself rational and unperturbed. Now I am excited to test how much I won't be bothered by a 10%, 15%, 20% correction... or an even bigger drop. I talked the talk, now I get to see if I can walk the walk.

[scottish]

Humph, I didn't realize the Dow had gotten above 17,000 in the first place.   I'm still used to thinking of it crossing 10,000 as big news.

[Bracken_Joy]

I have to confess: I'm a little excited about this.

Not because stocks are on sale. Well, that too, of course, that makes it exciting too, so I've been buying.


The really exciting thing is that I only started learning and caring about this in ~2013 (age 22-23, still in college but almost done), and only started investing once I graduated and worked full time. Only a bit over a year. Now, this is relevant because I consider myself rational and unperturbed. Now I am excited to test how much I won't be bothered by a 10%, 15%, 20% correction... or an even bigger drop. I talked the talk, now I get to see if I can walk the walk.

+1. Voluntary discomfort on a financial front!

[rocketpj]

My dad called me yesterday to talk about the dip in the markets.  I think he was worried I might get nervous and sell, because he relaxed completely when I said it was normal and I am on a 70 year timeline so am not even paying attention.  We then talked a bit making bullshit projections, but I am not selling until I am somewhere post FIRE, and his investments are mostly just play money (he FIRED over a decade ago and they live very well just on their pensions, they use the savings to take vacations and could forever at their current withdrawal rates).

Of course seeing the graph point downwards is less happy than seeing a jump upwards, but just zoom out a few months or years and the huge dips become tiny little bumps.  Focus on enjoying your life and keep investing.

[CanuckExpat]

It took me a few days to clue in that anything was going on. I'd say I didn't react but that's not totally true: I decided to harvest about $6000 in losses, so should keep me covered for two years of tax returns.

Other then that, It's stay the course.

To OP's question, we are 0-5 years from FI/RE depending on market returns and personal choices. The latter makes a bigger difference and is more in our control.

The good thing about starting to invest around 2008 is this stuff doesn't seem to phase me, I'll pay attention when there's blood in the streets.

[markbike528CBX]

I talked the talk, now I get to see if I can walk the walk.

Be brave and/or incredibly lazy in sell mode. 
That is walking the walk.

[redbird]

:rubs hands together in anticipation of an entertaining few days:

I doubt this will stick long, though, since there's no signs of the U.S. market going into recession.

This. I'm actually FIREing in less than 2 weeks. I actually hope stocks stay a little meh through Friday so I can get my bi-weekly stock purchase "on sale". I'm not worried.

[BlueMR2]

The wife is excited about the drop, she's trying to get together enough money to buy into VTSAX now.  :-)

Me, I'm propping up the economy by installing a new HVAC system in the house.  Sigh, that'll push back my next VTSAX buy a little bit.  Maybe if I'm lucky things will still be down at that point...