Will the Fall of the Stock Market Affect Your Modeling?

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Greg@mnrr

Section Hand
This week the DOW dropped almost 4,000 points due mainly due to the Corona Virus spreading and its affect on the US and World economies. Will you curtail your budgets for model railroading spending or cut back spending to include only the most necessary items for your model railroad.

I know I have a Rapido SW1500 on order which isn't due until late this year or early next year. But, that Scale Trains locomotive I been thinking about may have to wait awhile before I order the one I want to add to my roster. I need couplers, metal wheels and some select modeling paint colors which I'll purchase tomorrow at Walthers. I have a order of Scale coat spray Grimy Black paint ordered and some other weathering paint colors that were on line orders and should arrive in the next few days.

I know I'll be a bit more cautious on our spending habits and think twice or even three times before making any medium to large purchases.

My personal opinion is that the Corona Virus is nothing more than a unknown virus similar to the flu bug, but perhaps more deadly. The media again maybe over reacting, but the concerns are real, but extreme measures may not be necessary.

Hey, on the bright side I could live for two weeks staying in my house working on the railroad.

What are your thoughts and opinions....?

Greg

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Red Oak & Western

Active Member
Nope. Some broker sneezes twice and the market falls. Then "somebody" decides N95 masks will be in great demand and the market shoots up. I only pay attention to the long term trends. I have several model railroad products on order from AliExpress. I did get a notice that shipment may take longer due to some flight restrictions, but so far everything has arrived on time. And no, I'm not worried that the virus might be hitchhiking on the packages.
 

trailrider

Well-Known Member
I guess I'll have to forget about adding another room on my house to my train room. Oh, wait a minute...I wasn't going to do that anyway! As to buying any more rolling stock, if I wanted to run it all, I would have to add another room to the house! As to Red Oak's statement, that is very similar to what my grandfather said about the market back in the 1950's: "The stock market is run on emotion. The president sneezed, get me my broker!" Some financial pundits have been saying, "It doesn't hurt to take some profit." That's fine, but you better figure out how much of that profit will be eaten up by capital gains tactics! ABOVE ALL, DO NOT PANIC! Either about the economy or about the virus itself. Panic has killed more people than all the diseases in the world! Remember, when in danger, when in doubt, run in circles, scream and shout, RELIEVE THE WATCH!
Green board all the way!
 

TLOC

Well-Known Member
What goes up must come down, the stock market is famous for that. My 401 is basically a savings account that I have no plans for at least 2 more years when I have to start pulling money from it. Does it affect my hobby, nope.

TomO
 

santafewillie

Same Ol' Buzzard
No it won't affect my modeling purchases. I moved all of my retirement accounts into safe, non-market securities a couple of days ago, so I only lost what I had gained since January 1. I usually ride it out but since I am already retired, I don't need to invest aggressively.
 

trailrider

Well-Known Member
WHAT? Can that happen! I ordered wire connectors from China :eek:
A week ago, I bought an office chair at an office supply store. Because of the total weight, I had the employee take it out of the box and put the separate pieces in my car. Each piece was encased in a plastic bag. It wasn't until I had unwrapped the seat part that I noticed the label said, "Made in CHINA" and the date of manufacture, November 19, 2019! IF the virus could be active on the parts, I'm stuck! Well, I emailed the CDC. Their answer was that the corona virus is transmitted by person-to-person contact, from sneezing or direct contact. While someone who was infected and sneezed on his/her hand could leave the virus on a door knob or railing, or other smooth surface, it would not last very long. So, I don't need to worry. I'll still self-check for another week or so: if I were to start coughing and have a fever, then I would get myself checked. Otherwise, don't worry about it. (Of course, I can't take responsibility if CDC is wrong!) The main point is, WASH YOU HANDS FREQUENTLY, avoid sick people, get you flu shot if you haven't already (takes about 2 weeks for the shot to take full effect). If you had any plans to travel to the Far East or Italy, I'd cancel it.
 

glenng6

Member
I am not the least bit worried and will purchase what I need, when I need it. I have been investing since 1970 and been retired since 2007. During that time there have been numerous down-turns and corrections. Anybody remember 2008? As mentioned above, panic is the worst thing you can do. If you remove your shares it becomes an actual loss. Until then, it is only a paper loss. When you decide to jump back in, you will most likely pay more for the investment than what you sold it for. Double whammy, paid more for less. And that will be the case for whatever investment you chose. The markets wait for no man. Anyone "near" retirement must consider the length of time they think it will take to recover their losses. Remember though, you don't need all of what is left in your accounts, immediately and if you get out of the stock market you probably never recoup your losses. Given time the market will always recover and then some. Look at any timeline of market performance over the last 90 years. Glenn
 

Rico

BN Modeller
ACK! o_O
Trailrider I just slid My finger over your reply on my iPad, I’m going to disenfect it just to be on the safe side, I suggest you do the same to your butt if you’ve sat in that chair! LOL ;)kidding
As was mentioned yes the media does tend to blow things out of proportion don’t they?
Still this bug does have potential to spread for sure. Too bad the Chinese gov tried to deny it so long.
As to the original question, I’ve got most everything I need other than more track so my spending won’t change much.
Atlas 83 flex is ten bucks a stick right now, wonder if that’s the reason?
 
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beiland

Well-Known Member
Have any of you spent much time in Asia, and seen how the millions of Chinese run their little businesses...millions of small, often one man job-shops.?? I think you are going to see LOTS of Chinese business failures if this virus persist for very long,...and that will filter down to USA businesses....BIG downturn. Aljazeera had a report last week on a Chinese lady who owns like 10 car dealerships, that are all doing NO business for the past month,...one more month and shes likely bankrupt

I withdrew to a cash position the other day, because I do not like to ride the market down if its taking big hits...which I see as a real possibility.

I imagine there are going to be a lot of importers of our train goods, getting very little new product for quite some time,...and not placing new orders real soon.
 

Red Oak & Western

Active Member
As to the original question, I’ve got most everything I need other than more track so my spending won’t change much. Atlas 83 flex is ten bucks a stick right now, wonder if that’s the reason?

WHAT!!!!????!!!!
Thanks for half a heart attack! Then I checked MB Klein - $4 per stick with over 400 in stock. Just remember: Never trust anything you read on the internet.
 

Brakeman Hal

Well-Known Member
I've been making mandatory withdrawals from my IRA for 10 years, beginning when I turned 74.

I just re-invest the withdrawn funds in Certificates of Deposit, which are secure and earn better interest than savings accounts.

I'll be pulling one out this fall when it matures for $51,000.

Brakeman Hal
I guess I'll have to forget about adding another room on my house to my train room. Oh, wait a minute...I wasn't going to do that anyway! As to buying any more rolling stock, if I wanted to run it all, I would have to add another room to the house! As to Red Oak's statement, that is very similar to what my grandfather said about the market back in the 1950's: "The stock market is run on emotion. The president sneezed, get me my broker!" Some financial pundits have been saying, "It doesn't hurt to take some profit." That's fine, but you better figure out how much of that profit will be eaten up by capital gains tactics! ABOVE ALL, DO NOT PANIC! Either about the economy or about the virus itself. Panic has killed more people than all the diseases in the world! Remember, when in danger, when in doubt, run in circles, scream and shout, RELIEVE THE WATCH!
Green board all the way!
As for Rolling Stock, it's more reliable than the Wall Street kind, so go for it!
 

cv_acr

Active Member
Nope.

Drop in the stock market does nothing to my regular income, and it'll come back eventually. I've got a lot of years left until my retirement savings need to kick in.

I already slowed down a long time ago as right now there's not a lot of major items I need to collect. While I still have a few holes, I have a lot of the equipment I need for my layout. Plenty of projects to work on but sheet styrene is pretty cheap by comparison.
 




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