Market Meltdown

[mirth]

Yikes

http://www.nytimes.com/2015/08/25/business/dealbook/daily-stock-market-activity.html

[Gusington]

Everyone is saying to just 'do nothing' and everything will be peachy.

[mirth]

Oh sure. No big whoop.

http://www.nytimes.com/2015/08/22/your-money/stocks-and-bonds/advice-after-stock-market-drop-take-some-deep-breaths-and-dont-do-a-thing.html

[LongBlade]

Everyone is saying to just 'do nothing' and everything will be peachy.

Dow fell 1000 early on but appears to have recovered about 800 of that loss.

Global economic-growth fears slammed Wall Street on Monday as U.S. equity markets plunged at the opening bell before clawing back more than 700 points.

As of 11:30 a.m. ET, the Dow Jones Industrial Average tumbled 462 points, or 2.81% to 16004. The S&P 500 dropped 57 points, or 2.92% to 1913, while the Nasdaq Composite plunged 126 points, or 2.69 % to 4579.

All ten S&P 500 sectors were deep in negative territory, with energy leading the way lower, dropping 3.78% in recent action.

source: http://www.foxbusiness.com/markets/2015/08/24/wall-street-set-to-plunge-amid-global-market-selloff/%20?intcmp=hpbt1

[Labbug]

Think of this as a buying opportunity.

[LongBlade]

Think of this as a buying opportunity.

Yeah. I'm not sure the declines are quite done, but I'm thinking soon will be an excellent time to pick up some value stocks.

[OJsDad]

I was on a flight when markets opened today.  But being on SW Airlines, I was able to stream Fox Business.  The talking heads there all seemed to agree on the following;

1.  China is in big trouble.  Leadership trying to control markets while burying all of their economic issues.  Some thing China GDP growth below 2%.
2.  Africa is in big trouble.  Too many deals made with the Chinese.  Commodity prices are way down.  This is because of China economy in big trouble.
3.  No overall economic issues in US.  Markets are reacting to China and policy stances from FED and Obama.  Best thing for FED and Obama to do for the market downturn is nothing.  It'll work itself out pretty quickly.  Obama just needs to get a clue that he and his policies of economic micromanagement don't work.

[bbmike]

Think of this as a buying opportunity.

Yeah. I'm not sure the declines are quite done, but I'm thinking soon will be an excellent time to pick up some value stocks.

If only I hadn't spent all of my money during the Steam Summer Sale.  :(

[Bison]

It'd be interesting to see how many large sellers bought a few hours later lower.  Call me a skeptic, but I think there was some manipulation going on too knowing that there would be a sell off.  But the market has been going down now for several days back to last week.

[LongBlade]

It'd be interesting to see how many large sellers bought a few hours later lower.  Call me a skeptic, but I think there was some manipulation going on too knowing that there would be a sell off.  But the market has been going down now for several days back to last week.

There is probably some manipulation. The major investment firms make money on changes of pennies. They have computer programs which make these trades essentially at the speed of light. When you hold hundreds of thousands of shares and make a couple of pennies on the transaction it all adds up. When it shifts big they can make a lot...and lose a lot. Remember that for every trade there is both a buyer and a seller.

[bayonetbrant]

STOCKS ON SALE!

[LongBlade]

STOCKS ON SALE!

Yeah, but I'm waiting for the after Christmas markdowns.

[Mr. Bigglesworth]

Modern stock markets are like a casino, the house wins over time. If you expect the big players to give you easy winnings you will soon find you have no shirt and no lunch.

[LongBlade]

Modern stock markets are like a casino, the house wins over time. If you expect the big players to give you easy winnings you will soon find you have no shirt and no lunch.

Not really. Modern stock markets over time produce wealth.

Yes, there are random ups and downs, and sometimes big crashes and big rallies. But the overall trend for the past century is quite clear:



Now, I have criticisms of the market's current position and believe this "correction" (and it may be more) is a long time in coming and well deserved, but barring a zombie apocalypse the long term trend will produce wealth and increase it.

[Mr. Bigglesworth]

Wealth for whom? The small investor will get crumbs if they are lucky.