The Market votes....Dow loses 345 points as mixed retail sales reports, weak job market news and an oil price slide magnify fears about a global slowdown.

  • Posted by a hidden member.
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    Sep 04, 2008 9:39 PM GMT
    http://money.cnn.com/2008/09/04/markets/markets_newyork/index.htm?cnn=yes
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    Sep 04, 2008 9:43 PM GMT
    The stock markets are finally starting to build in ALL the bad news. Before it was the credit crisis that was causing the banks to go down, but commodities were going up so energy companies were increasing. Now everything is going down so the stock market is reflecting that. A buying opportunity may not be far away though. When everyone is glooming and starting to panic that is when the really smart investors with money start going into the market.
  • styrgan

    Posts: 2017

    Sep 05, 2008 12:38 AM GMT
    My first thought upon coming home was, "Ouch! My 401k!"

    There's a big difference though between a correction and a recession. We're lucky in that what we've seen so far is really a slowdown as opposed to a dead stop.

    Knock on wood...
  • HndsmKansan

    Posts: 16311

    Sep 05, 2008 12:43 AM GMT
    OUCH MY CLIENTS!!!!!

    I heard all about it, fortunately I was out seeing them, but knew it was a bad day!

    Maybe it was the speech given by the "Palin woman"....
    LOL jk


    icon_mad.gif
  • styrgan

    Posts: 2017

    Sep 05, 2008 12:52 AM GMT
    HndsmKansan saidOUCH MY CLIENTS!!!!!

    I heard all about it, fortunately I was out seeing them, but knew it was a bad day!

    Maybe it was the speech given by the "Palin woman"....
    LOL jk


    icon_mad.gif




    Funny someone on Larry Kudlow just suggested the same thing!!!

    Maybe they were scouring RJ forums..
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    Sep 05, 2008 12:53 AM GMT
    SurrealLife saidThe stock markets are finally starting to build in ALL the bad news. Before it was the credit crisis that was causing the banks to go down, but commodities were going up so energy companies were increasing. Now everything is going down so the stock market is reflecting that. A buying opportunity may not be far away though. When everyone is glooming and starting to panic that is when the really smart investors with money start going into the market.


    That's the kind of thing the money shows on TV always say but the US stock market didn't recover to its pre-1929 levels until 1953. Twenty-four years. A long time to wait for returns.
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    Sep 05, 2008 12:58 AM GMT
    It's just one day. These will all bounce way up (not as high as they were, but not nearly as low as they are now) tomorrow if not Monday.
  • styrgan

    Posts: 2017

    Sep 05, 2008 1:39 AM GMT
    [quote][cite]jprichva said[/cite

    That's the kind of thing the money shows on TV always say but the US stock market didn't recover to its pre-1929 levels until 1953. Twenty-four years. A long time to wait for returns.[/quote]

    The Great Depression was an outlying event, and its hard to imagine such an event occurring in the current global environment.

    Also, in something like five of the last nine recessions, the S&P actually went up.
  • SkyMiles

    Posts: 963

    Sep 05, 2008 1:50 AM GMT
    I can't tell how bad this all is. Is this just a ripple or the beginning of something major. On the one hand, the world economy and the US economy is pretty vast and diverse. On the other hand we're freakin' drowning in debt because of the wars and the tax cuts, and too many people in our goverment and financial industries have been treating our economy like its unsinkable.

    I do think we'll get through this ultimately, but I also know that nothing's unsinkable if you keep f*cking with it ;(
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    Sep 05, 2008 6:50 AM GMT
    styrgan said[quote] The Great Depression was an outlying event, and its hard to imagine such an event occurring in the current global environment..


    That's not historically accurate. Markets can take a long time to recover from other events. The Southern California housing market took ten years (1991-2001) to recapture peak prices from the housing crash of 1990; the Japanese economy spent 15 years (1989-2004) in recession.

    The people who tell you that "markets always bounce back quickly" or that these events are "outliers" are nearly always people with a financial stake in getting other people to believe that. It's not true, though.
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    Sep 05, 2008 10:28 AM GMT
    jprichva said
    styrgan said[quote] The Great Depression was an outlying event, and its hard to imagine such an event occurring in the current global environment..


    That's not historically accurate. Markets can take a long time to recover from other events. The Southern California housing market took ten years (1991-2001) to recapture peak prices from the housing crash of 1990; the Japanese economy spent 15 years (1989-2004) in recession.

    The people who tell you that "markets always bounce back quickly" or that these events are "outliers" are nearly always people with a financial stake in getting other people to believe that. It's not true, though.


    Yes, I did think of the Great Depression as well as the bear markets from the late 60's to 1982, when making my statement. However, the world economy is very different from those times. Mind you I am not saying the US stock market will necessarily bounce back that vigorously, but overall the world economy should. The big elephant in the room going forward is energy prices. Oil becoming increasingly expensive and hard to find/refine while demand continues to increase could become a serious problem next decade. I listen to T. Boone Pickens when it comes to these things and he is worried.
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    Sep 05, 2008 11:16 AM GMT
    jprichva said
    The people who tell you that "markets always bounce back quickly" or that these events are "outliers" are nearly always people with a financial stake in getting other people to believe that. It's not true, though.


    In light of this, I should have pointed out that I was referring to the short cycle (a few days).
    This significant a drop is generally a bad market sign, and indicative of the continuation of a bad economy that will continue as it has since last fall.
  • CAtoFL

    Posts: 834

    Sep 09, 2008 12:02 AM GMT
    bgcat57 saidIt's just one day. These will all bounce way up (not as high as they were, but not nearly as low as they are now) tomorrow if not Monday.


    It's Monday and sure enough, the market bounced back 290. I'm hiring bgcat as my broker.

    But if it goes down tomorrow, I'm hoping you all will engage us with another round of "the sky is falling!".