McMusing: When Stocks Plunge

Observations From the 6th floor of a Hospital

I wrote this last week while at the hospital and decided to wait and see what would happen this week. Pretty much predicted what happened—just saying. I am not alone in saying this and I wish I were wrong.

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I have had so much time to wander about in my brain while sitting and waiting in Scott’s hospital room. While definitely a business outsider, I generally have a keen eye for patterns and trends—especially when I have endless time to observe.

Someone said to me recently, "It is good when stocks go down because if they were a solid investment before the plunge, I can buy them cheap and there is little risk because they will go up again."

I mean, it could have been a Pollyanna view on this—or it could have been very savvy. Because if you are financially stable (esp. rich), the stocks dropping temporarily are a non-issue and maybe a positive thing as this person explained.

While in middle school, one of my teachers had us track stocks. I should have paid more attention, but I was too busy surviving and being a kid. But I did realize that playing this "game" doesn't always end well—but *major point here* if you are rich it doesn't matter because you probably know how to get a tax break from a loss. But for those watching meager retirement accounts dwindle because of the stock market, it is not just inconvenient, it is threatening. People are being told to wait it out. When you are old, waiting it out has an entirely different feel.

And then, in our case, someone needs a new/different liver. When you get to the point of needing a liver you really understand the need for miracles. This is literally financially impossible. Friends and family are already stepping in to help us but this is so far beyond what any of us can comprehend right now.

It is so unhelpful for the world to be chaotic.

So, I think about this stuff. I am thankful for the help of a therapist who helped me to stop going bonkers with catastrophic thinking. Scott and I remind ourselves that we have been on the edge of financial ruin many times (ministry-related jobs are prone to that), but we have never gone wanting. This is not true for everyone. But this edge feels slightly more precarious than any other edge we have experienced (understated).

So, when I looked at charts this week that showed the stocks plunging, I sighed. And then I thought, "If I were rich and powerful, this would be a great way to build wealth. Tank the stock market, get in fast to buy up the stocks that people are dumping in fear, and then heroically save the market. It would be possible to be a hero and get richer all at the same time."

Naw, that is too diabolical. I could never do that to people who are powerless even if I was smart enough to figure out how it works. But if I were both diabolical and powerful, this would be a great strategy.

If you want to dig deeper, Google "Who is buying stocks right now”. You can find websites that track politicians. They are all busy—both sides. This is not unusual. It makes sense. Stocks are currently a fantastic opportunity for savvy people who can risk losing some money.

The illegal use of information available only to insiders in order to make a profit in financial trading is called insider trading. It is insider trading—and illegal—if you have information only available to insiders that helps you dump stock that is going to plunge. This doesn't apply to something that is boldly advertised as coming. Buying low stocks right now is simply good business sense.

Making stocks plunge for that purpose would be diabolical, right????

Surely that isn't what is happening. Naw, it couldn't be. I guess we will need to see what happens and then, what causes the stock market to rebound—it will. Those that sell when it plunges will be the losers. In my thinking, it is just another game in the lives of the rich and powerful who continue to grow increasingly rich and powerful.

I could be wrong of course.