Not That I Really Care but....

Davey Jones

Davey Jones

Well-known Member
Location
Florida
The Dow right now is at -450 as its been most of last week.

What the hecks going on?
 

Think of it like walking up a flight of stairs playing with a Yo-Yo... there are daily and weekly ups and downs.. but the general direction has historically always been up. One has to hang in.. not panic... and buy low..
 
Davey Jones said:
They will all say "Its a correction" whatever the hell that means.
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I believe a " correction" means the market has been overvalued for a long time and sells off because investors take profits and wait for the dust to settle before re-entering the market. The boom and bust theory is supposed to be the capitalist way controlling a country's finances.
 
The plunge is due to China's recent devaluation of their currency that just happened less than a week ago. It affects the whole world. Plus, typically the stock market goes down at this time of year every year they say…but this time is excessive and going to take longer to recover. Apparently they're not manufacturing as much and therefore suffering economically.
 
Lara said:
The plunge is due to China's recent devaluation of their currency that just happened less than a week ago. It affects the whole world. Plus, typically the stock market goes down at this time of year every year they say…but this time is excessive and going to take longer to recover. Apparently they're not manufacturing as much and therefore suffering economically.
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That was certainly a strong catalyst for the selloff. I believe they're the world's 2nd largest economy. If their citizens stop spending on goods and services from other economies, which are now made more expensive by the devaluation of China's currency, that will push the prices of stocks down around the globe. Compounding this is a market that has been at historically high valuations for some time. The US market has been on a six year rally, which is rare. It's not sustainable unless the economy is keeping pace. All the elements were there for the selloff. My financial advisor has been warning of this for months now. Scary times, but if you're properly diversified in stocks, bonds and cash/alternative investments, it will lessen the worry.
 
What's happening right now with the markets is not the same as what happened in '09 and '10. Back then. our banks put us in a bind. Today, it's China's banks that are hurting their country and effecting the world's markets. The reason why this isn't going away is because China does not see this as a major problem for them. They couldn't care less about the rest of the world. China is holding trillions of dollars of other country's debt and are aware that they could begin cashing in those bonds at any time, which would then force even the U.S. to again begin to print money to pay off those debts. I really doubt if it will go that far. China really needs to step up here and lower their interest raise and stop this madness.

As soon as China lowers their interest rates, this madness will subside.
 
I understand that Yesterday was called Black Monday.... but the European markets are calling today "Come Back Tuesday"... Guess their markets are already up.
 
The GOP would love to privatize all pension plans so big Wall Street commissions could be made on all transactions as the market gyrates. The day of the defined benefit which insured peace of mind for so many workers is rapidly coming to an end...
 
Ralphy1 said:
The GOP would love to privatize all pension plans so big Wall Street commissions could be made on all transactions as the market gyrates. The day of the defined benefit which insured peace of mind for so many workers is rapidly coming to an end...
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Absolutely... and ALL the risk is transferred from the Company to the Retiree should the market tank... Pretty slick huh? That's why I always contend that swithching over from guaranteed pensions to 401Ks really only benefitted the corporations... not the worker.
 
One of the reasons I switched over to a CFP a few years ago was that I had no time to properly manage my growing portfolio, both in my 401(k) and other retirement accounts. Gives me some peace of mind on days like yesterday. As he constantly stresses to me, his job is to make sure that I don't get seriously hurt by markets that drop in a big way now that I'm close to retiring. It's all about asset preservation along with a realistic return on investment. I may not do as well as others when markets are soaring, but I sure don't fare as badly when they tank.

As for the GOP, that's just one of MANY reasons why I can never support them.
 
Bobw235 said:
From the NY times an hour ago, talking about stocks and how expensive they are in today's market. http://www.nytimes.com/2015/08/26/u...=top-news&WT.nav=top-news&_r=0&abt=0002&abg=1
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Basically common sense and a big duh. Just like the housing bubble and mortgages. Someone has to buy what someone wants to sell. What bothers me the most is that the buy & hold crowd still has too much influence discouraging proactive management of your stocks. Several times a year I see hit pieces on proactive or aggressive mutual fund managers saying it's not necessary and/or over rated. And I question why a 5-10 year performance analysis is that relevant anymore.
 

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