Since we have a bit of a movement in crypto today and the amount of " is correction coming " threads in sub going over 9000 per week recently I decided to make a guide for average user on how usually thread goes about any price decline in anything in this sub and what to expect
If you look at any volatility period over the past couple of years ( august 2015, start of 2016, brexit etc ) you will see a pattern on how decline of any securities thread in r/investing develops , the basic framework is the same and usually follows the same pattern:
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some bullshit happens , sp500( or crypto or oil, whatever ) opens with monstrous -0.63% , people wake up with Robinhood accounts been in the red and the grief of loosing 27$ of life savings makes them start a thread asking wise people of r/investing about imminent correction and what to do in this macro environment
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sp500 crushes to -.81%, thread getting traction with people giving each other advice how shit is on discount and we should all buy the dip and prices lower then yesterday bla bla bla, cant time the market and some quote from Buffett, cb_hanson gets triggered about market timing says something about selling volatility and how its predictable and posts 60 page pdf , none has time to read this shit because everyone is thinking if they should add to NFLX or NVDA with extra 100$ they need for food but YOLO and ramen for a month will work
3.sp500 drops -1.3%, the first sign of correction thread is someone posting quote about blood in the streets and buying, people argue about historic context and brag about how awesome dividends are on their stocks, , argument starts about what's better dividend or capital appreciation and people find out that apparently dividend is not some magical fairy money from thin air, minds get blown
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someone notices that bonds are up , discussion starts what the fuck are bonds and why you even need them , MCS says something reasonable about how they reduce volatility and provide better risk adjusted return and that 80/20 is pretty much 100/0 with much lower volatility and almost same return, someone admits they are 90/10 so they can buy on the dip , gets called conservative pussy. Note: any discussion about bonds ever on the sub ends in hydrocianade telling someone to go fuck themselves after arguing about where yield and price are the same or not
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somewhere in the middle of shitstorm dvdmovie1 posts a reasonable comment about how sick and tired he is from this bullshit posts about corrections and volatility nothing new and you should own good companies but gets dragged into argument about Ford and how awesome their dividend is trying to educate people why Ford stock sucks
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after sp500 dives to -2.03% another 10 threads appear in sub because everyone has a special unique problem and they want a special attention, mods merge threads, top post is ALWAYS suicide hotline and bits of wisdom how its just money, link to scene from margin call gets posted, everybody talks how awesome that movie is
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markets close, new thread starts where people do dick measuring contest about who is down the most in terms of weekly/monthly/yearly pay, the more you are in the red the more bad ass you are, bonus points if you have diversified portfolio of FB, TSLA, NVDA and BTC
Submitted September 04, 2017 at 12:35PM by Banabak http://ift.tt/2wAGIap
