Market getting screwed (again)
Surprised nobody's talked about it yet-- DJIA down 280 points today in what looks like the beginning of a double-dip. Short story is that the market may get fucked... big time. But will the Fed let this happen? Even if Bernanke does something like a QE3, it would not help at all other than to devalue the USD. I think that a pullback involving major changes to the banking system is very possible.
But hey, even if this whole capital markets thingy collapses, we can always retreat to plain old farm life :D What are your thoughts?
The rapture is coming, thats why
Again? didn't we just survive that?
Time to find a new country...
Definitely not a double dip, just a combination of bad news and people taking profits. Its actually healthy,but if you think its going to be a double dip just buy the VIX options.
healthy? are you serious?! what planet have you been living on for the past 3 years? get a clue dude....
double post
This isn't healthy in the slightest bit-- we are getting screwed with URs at Depression highs (U-6 at around 30%(?)) and have to constantly raise the debt ceiling. Seems that not much has changed from '09...
While this may be an investing opportunity in the long long run, for now the market seems pretty damn volatile. There's evidence that the market may break out in the down direction... and I'd think the government might eventually have to reform the banking system. Which might screw up my own job prospects :o
I might be wrong, but, I think Studiofan is referring the the stock market discounting too much optimism and needing to take a breather (healthy correction). I hear you all on how fragile out economy is. Given this, I don't think there is anything unhealthy about a nice correction. We've had a nice run.
I'm with you on this one. It's the beginning of the summer, money managers were taking profits, we are going to see a big dip this summer and then the DJI might end up at 16,000 once we enter the 3rd leg of the bull market by the end of the year.
Happens when the private sector misses expectations then a bunch of banks slash public sector jobs growth estimates by a 1/3. Although, I wouldn't say its healthy when the U.S. needs to increase the debt ceiling again and Republicans are refusing pass that until they get their massive spending cuts. Closer to screwed than healthy.
I'm going with the rapture theory, the market is gearing up for Palin's victory lap.
Who cares? A down market just presents another opportunity to make money.
The recovery never made sense anyway, especially in the stock market. Put the price of gas back up to near 08 levels and forget about it, it will eat right through any improved earnings of the past few quarters. Not to mention housing.....
You guys are all living in ignorance if you think the industry is gonna get out of this alive. Face the facts. Our country is literally digging its own grave.
^^^^+1
Met tons of doods teaching english in Asia recently... not a bad QoL considering the low cost of living and the disproportionately high salary combined with minimal work effort. So there's always that option.
did this for 6 months after college, $20/hr+ private tutoring, lived on $20/day, great qol minus the pollution
.
Who knows, maybe in a few years theyll be coming here to teach us their languages haha.
Gents,
I think the term double-dip is a little over used and exceedingly pessimistic of an assumption to make right now. Just because the market has one or a few bad days, doesn't mean we are coming to an end in the equity markets…a little premature. I am not saying it is completely out of the question, but at the same time I think it’s pretty unlikely at this point. Currently I am partially investing and holding cash, to see this as more of an opportunity.
Further, we keep seeing this term "double dip" being excessively used, more so than Paris Hiltons vagina. I keep hearing many "experts" and media use this term, but in reality it should actually be referred to as a "second recession", because we are already out of the first recession, and its been 2 years since we had that first recession. Considering that this barely happens historically should be one major thing to note. Once I hear people panic like this, I see it more as an opportunity and I think a 6.5-10% correction is more likely, currently. We have seen the 10yrs yields drastically decrease (which is concerning), but fundamentally companies are holding record cash on balance sheet, stock re-purchasing has been at all time highs, and M&A activity have been pretty robust. Especially in the mega cap space, companies have had time to fix their balance sheets – and the government has made everything easier with excess liquidity and low rates of borrowing.
I would be way more concerned about a “recession” or larger correction in the markets if we saw extremely problematic issues with the debt crisis Greece or other Euro nations to continue and get significantly worse….Further, I think the catalyst for a double dip is most likely going to occur in Emerging Markets/Commodities. Especially given the recent popularity of these asset classes (investors seeking yield during QE, and large capital inflows, private equity activity, from all countries into EM). The key thing to look for will be China –and how large of a concern growth/inflation will become, and once our markets pick back up, and rates in our country increase to highs….then I would be worried.
I am a novice when it comes to financial markets, but I feel like investors are anticipating the ending of QE2 (and no QE3 after), the worsening of the European soveriegn debt crisis, and reductions in gov't spending. I dont think this is a real double-dip, maybe a mini-dip.
On one hand, I dont think any of the problems we had back in 2008 have been fixed. But then again, the economy is still emerging from its lowest low since the Great Depression, so can the economy really get any worse? I think most likely not.
Have the "beneficial" effects of QE2 even been realized yet? Many are talking about the end of the stimulus, but has that money actually been dumped into the economy yet? Even if it has, it probably hasn't had the opportunity to have a real effect yet.
I'm invested heavily in junior precious metals & other commodity explorers. I actually want QE3 because it'll make all commodities shoot thru the roof..
Goodluck!
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