r/stocks • u/Chrissylumpy21 • 2d ago

Crystal Ball Post Is Black Monday Incoming?

So much fear in the markets and this time really feels different. All the Mag7 stocks are so hit by the tariffs our iPhones will probably cost $5,000 soon and as the world slows, people will use Amazon less, advertise less on FB/IG. No one is buying Tesla anymore. Who needs anymore AI chips, yet AI is decreasing Google searches.

I fear the world is realizing it all this weekend. Or is it just me that sky appears to be falling?

2.0k Upvotes

87% Upvoted

1.1k comments sorted by

View all comments

Show parent comments

94

u/genericusername71 2d ago

great time to increase dca’ing

113

u/Tookmyprawns 2d ago

Great time to hold onto some cash and wait it out. This feels like something that will increase inflation, lead to higher rates, and job losses for a while.

74

u/LoweringPass 2d ago

Why would you hold onto cash when you're expecting increased inflation...

70

u/Ready-Taste9538 2d ago

Because once you’ve lost half of your capital in the market, and prices explode, some people will have to sell to pay their bills. And also because the smartest, most successful, investors in the world are sitting on mountains of cash and have been since December?

3

u/UnderstandingSea4745 2d ago

I guess you could buy some gold. I dont want to exit the market pay taxes and lose money.

I did rebalance massively before this on risky stocks. I guess ill just DCA in on big red days and hopefully come out on top in 10 years :/

8

u/Ready-Taste9538 2d ago

If you lose money you don’t pay taxes. You harvest that loss and use it to reduce your tax liability. Unless you’re saying you are still up on your trades even after that sell-off.

4

u/UnderstandingSea4745 1d ago edited 1d ago

I manage my tax lots to have more control over that. I sell at cost or tax harvest and rebalance.

I was up over 30%+ and now only + 11%.

It could have been much MUCH worse but now I have lots i closed at cost and buy on the dip.

As long as you arent selling for a loss, you dont hit wash sales when you buy back in.

I am 35% in bonds. I dont want to be sitting out of the market.

Im also only 8% in gold as a hedge

I don’t want to be completely out of the market even though things look bad.

5

u/jinniu 1d ago

So buy gold at ATH? Hmmmm

2

u/UnderstandingSea4745 1d ago

If we go into a deep recession it will drop and go up. Its something you would have to research

1

u/jinniu 1d ago

Ah I thought you meant now.