Anyone notice that the DOW was down dam near 200 points today

[ThomWV]

I believe it dropped over 100 yesterday.

NASDAQ -45

S&P 500 -26

[Virginia Dare]

1. Yep, looks like inflation is here to stay now...

it started on Monday, and just got worse.

[leftofthedial]

2. who gives a shit?

I ain't rich. That matters to me about as much as today's relative humidity in Botswana.

I just wish the whole damned capitalist house of cards would melt down quick and get it over with.

[sabbat hunter]

5. let me ask you this

what do you do for a living?

you dont think that whatever you do for a living wont be severerly affected negatively if our economy (Based on capitalism) fails?

i believe in a well regulated capital economy.

[leftofthedial]

6. I'm unemployed

chronically now

[smitty]

8. I'm not surprised, sounds like you resent having to work.

[leftofthedial]

15. yeah, right

you might find life works out better for you if you don't spout crap you don't know anything about

[sabbat hunter]

27. i know someone who is

chronically unemployed too. yet he is about as right wing as they come. he is among those 30% that thinks bush is doing a fine job, sings his praises and the praises of the neo-cons all the time.

wonder when he will realize that he has been chronically unemployed for about 6 years, the same amount of time that * has been in office screwing us all over.

[Digital]

9. Shocker!!

nt

[leftofthedial]

16. Sucker!!

nt

[Selatius]

12. Our economy is not well regulated, and it's not capitalism; it's monopolism.

Markets are not healthy if you simply allow many major sectors of the economy to become dominated by a small number of competitors who possess vast resources to crush would-be competitors.

[sabbat hunter]

26. more like

unregulated capitalism. there is some competition, just not a lot of it. but that is what happens when you have a lazzie faire attitude like the * regime has had.

[gravity]

21. We're all interdependent

What happens in the stock market will affect almost everyone in this country for better or worst.

[quiet.american]

3. Did I notice?! I took a bath on a certain stock - bought calls and should have bought puts.

Yes -- I noticed! (Someone had mentioned to me this week that the market was due for a dramatic fall, but they'd set June 11th as the date for it to happen.)

[Warpy]

13. Should have been watching the Shanghai market

You had a 24 hour lead time. When Shanghai hiccups, the Dow takes a dump.

This is the same pattern that happened last February.

[quiet.american]

24. Okay -- I'm still learning! n/t

[Warpy]

25. I still consider myself on the steep end of that curve, too

because I only inherited about 17 months ago.

I've already figured out that being in for the long haul beats jumping in and out depending what the markets are doing. I tried an intellectual exercise in day trading (gave myself $100,000 in play money) and found out I wasn't very good at it before I risked any real money.

I just know the same thing happened last February, that the Shanghai market rebounded and became even MORE overvalued, and that a correction there was inevitable. Since so many investors are lemmings, it is also inevitable that our own market will dive for a few days or even weeks, too.

However, our market is slightly undervalued, indexed to inflation. Theirs is not and may not rebound to the extent that the Dow will.

[Lone_Star_Dem]

4. It's been a rough three days for the market

However, oil's up almost a buck last time I looked.

[smitty]

7. Nothing new, the market can go up and it can go down.

I've followed it for over thirty years and learned not to panic over every bump.

[Captain Angry]

10. Indicator after indicator has shown inflation to be a problem, but all were ignored.

Suddenly central banks around the world are talking about or actually increasing interest rates.

They cite high employment world wide, high resource utilization worldwide, competition over resources, etc. Indian and Chinese labor markets are seeing wage increases, and supposedly we are too.

Based on this, the old graphs say that supply will stick, demand will continue to rise, increasing prices (inflation).


So, there is a concern that the Fed will raise rates. Rates rise, cost of borrowing rises, companies reinvesting in themselves through debt decrease, spending decreases, employment decreases, etc.

[Cruzan]

11. Yep, and getting ready to short the fuck out of it.

I loves me a bear party!

[A HERETIC I AM]

14. Big fuckin deal.

It was down 600 points over the course of a week back in late Feb. Since then it climbed right back up and set an all time high last week. This is nothing more than profit taking and folks rushing for ten-year treasuries yielding 5%. Soon as it goes down far enough, the buyers will start back in. P/E ratio's are historically low. Stocks are cheap right now and therefore a good buy. Use this as an opportunity to buy. Hope your Mutual Funds pay a dividend this week and you reinvest.

Shit-fire, what with the "A civil war is coming to the US" and "All Corporations are evil" and "Everyone i know is eating cat food" and "The rich are out to take all your money and cook your dog for fun" type threads, you would think we were on the brink of a meltdown. Interesting you never see threads on DU that say "WOW! The Dow has had 12 consecutive days in positive territory!" No, you never see those. Doesn't fit the doom and gloom mindset of many DU'rs



We aren't having a financial crisis or a meltdown. We just don't have 10% growth, for fucks sake.

[Cruzan]

17. For what it's worth

Mapping Out the Bear Tracks

[A HERETIC I AM]

22. What its worth is spelled out in the first paragraph

I quote;

"I believe the U.S. economy will slip into a recession over the next two years and that U.S. stocks have entered a bear market. My main reason for these predictions is stress in the banking system caused by the weak housing and real estate markets.

While fundamentals are clearly deteriorating, the technicals on the major equity averages are showing some negative divergences. However, they're not yet weak enough to confirm the bear market based on pure technical analysis." (bold emphasis mine)

Cruzan, I don't want to sound snotty or anything here but this is not news. The economy, both worldwide and domestically runs in cycles and while calling the top of the peaks and the bottom of the troughs is often anybodys guess, i don't think you will find one single economist or fund manager out there who doesn't think there will is a recession coming sooner or later. As the author states "over the next two years" - is 24 months and a lot has to happen before expansion in the US grinds to a complete halt.

All you need to do is have a properly allocated, properly diversified portfolio that fits your risk tolerance and your investment time horizon. Find a money manager you can trust or a method that is effective and go with it. The last place to get investment advice is from Kramer, Money Magazine or an internet message board.

[goddess40]

18. Pay the work force

Instead of giving all the profits to stock holders some of it should be put into workers paychecks.

[librechik]

19. They're holding off til Scooter gets a pardon

[BeHereNow]

20. Yep- I sure did. Volatile market, to say the least. N/T

bhn

[A HERETIC I AM]

23. Mondays high was 13691 or so. Todays close was 13266.73

424 points in 3 days. Like i said above. Big deal. It went UP almost 300 point in 3 trading days from the 12 through the 17th of April. The Dow broke 12,000 for the first time ever back in October. It broke 13,000 on the 27th of April.

The Dow goes up. That what it does. Over time it is going to go up. Unless they do a massive reconfiguring of the multiplier and reset it, it will go up until it starts to go down. And then it will go up again.