Supertitious? Stock Market Drops. Dow Down Six Hundred & Sixty Six Points

I think the market is too high,this was an adjustment,it will be interesting to see what the markets do on MOn. Some investors maybe worried about another gov't shutdown if Congress doesn't do something by Feb 9th. Sue
 

The sign of the beast!

I don't think that God follows the market.

We are still up for the year and we can't forget that we were up significantly in 2017. Even if this is the start of a significant correction, decline of 10% or more, we are still doing very well.

The same old rules apply.

If you need cash in the near term then those funds shouldn't be exposed to market risk.

Stick to your plan and your portfolio allocations.

Dips and corrections are buying opportunities. We call ourselves smart consumers when we haggle over the price of a car or use a coupon to purchase a can of coffee why not look for a sale or a special on the price of a stock when the market goes down.
 
The same old rules apply. If you need cash in the near term then those funds shouldn't be exposed to market risk. Stick to your plan and your portfolio allocations. Dips and corrections are buying opportunities. We call ourselves smart consumers when we haggle over the price of a car or use a coupon to purchase a can of coffee why not look for a sale or a special on the price of a stock when the market goes down.
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Correct. But, as you surely know, PE's are pretty close to historical highs which makes stocks pricey. And the markets reacted to the good jobs report. They're worried that inflation might kick in and interest rates will rise. Probably, but I'm sure the fed will raise rates very gradually should this happen.
The good news is that there are more jobs and a 'reasonable' percentage of them paying decently. Now, if we could only match skills to jobs.....................
 
The market gains in the past year have been almost unreal...it is overdue for some sort of downturn. Hopefully, it will not be a protracted event, and will only lose 3 to 5 percent before turning positive again. However, with so much nonsense and turmoil coming out of Washington, I'm sure a lot of investors are becoming increasingly concerned.
 
It was time for a sell off and profit taking. It's also tax season and some are gathering money to pay bills ie sell. Might not be a lot individuals but just of couple of mutual fund managers start selling the same stock in large amounts in a short period of time that might add to the drop.
 
The stock market typically looks ahead. Good news about higher wages and increased employment signal a change in what the federal reserve may do.


Several years of no inflation due to low pay, part time employment, stagnant GDP growth and the economy being propped up by the Fed printing money is giving way to what we are seeing now. Jobs & wages increasing.


That IMO spells the potential for inflation. I think the stock market is anticipating inflation to begin. Thus the drop.

Nothing political in pointing out that if percentage is looked at this drop is no big deal when compared to the high percent drops after previous state of the union speeches of all past presidents.
 
Goldman Sachs says there is a high percentage that the market will recover from yesterday's (2/8/18) "correction" in about 4 months. Yesterday, I lost the past 4 months worth of gains so I sure hope GS is right...I mean Goldman Sachs, not Girl Scouts :) This is the 2nd correction in the past few days. I wonder if they'll be another before it's over.
 
Lara said:
Goldman Sachs says there is a high percentage that the market will recover from yesterday's (2/8/18) "correction" in about 4 months. Yesterday, I lost the past 4 months worth of gains so I sure hope GS is right...I mean Goldman Sachs, not Girl Scouts :) This is the 2nd correction in the past few days. I wonder if they'll be another before it's over.
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Just a nit. A 'correction' is a 10% decline, by definition. What is going to happen according to the experts (for what it's worth as they're wrong so often), is that the markets will again be volatile. They have not been volatile for some time now. The major issue (which seems contradictory), is that a good economy brings the possibility of inflation and rising interest rates. Rising interest rates result in people taking money out of equities and into bonds, further weakening the stock market.
Too early to know if this will happen..........
 
Thank you Retired Traveler for that clear and concise explanation. I thought yesterday's "correction" WAS ten percent, no? We had two days of significant decline...maybe together they made 10%.
 
We were definitely due for a correction, the market has been climbing at ridiculously high rates for over a year now.

The market seems to have stabilized itself a bit today, as I type this the Dow is down 8.81 points for the day.

Edit: It's now up almost 48 points for the day.
 
rkunsaw said:
It wasn't a stock market "crash". I think the market has gone up so much lately people are selling shares to take the profits they have made.
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Welll it's a crash now rkunsaw! Yesterday had the highest point drop since the 2008 crash. But you're right about the markets having gone up so much that in some instances, people's portfolios may not have taken too much of a beating.
 

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