Dow below 10,000, why?

[Loves Vintage]

Date: 10/6/2008 2:49:38 PM
Author: purrfectpear

Date: 10/6/2008 12:29:56 PM
Author: AGBF





If you don't mind a superficial answer, I actually think it's a response to the European and Asian markets that plummeted. You all know that the stock market is not my forte, and I know that the plunge in the European and Asian markets has its own causes, but I think that the proximate cause of today's plunge in the US market is the overnight plunge in Europe and Asia. But I could be wrong.

I am trained as an historian and a social worker and I have not discussed this with my other half, who balances the family checkbook and does the taxes .

Deb

Ding, Ding....we have a winner. I don't know what everyone else is smoking but today's issue is strictly a reaction to the global market.

PurrfectPear, Have I told you that I just adore your posts lately?

So funny!!

 

[Dancing Fire]

Date: 10/6/2008 2:41:09 PM
Author: MC

Date: 10/6/2008 12:43:43 PM
Author: Beacon
We can go lower from here. But fear is at such a high level that one has to start making a list of stocks that are of interest at such reduced prices.

Is there any possible way to make any money if a person was to invest a very small amount in stock? I''ve talked to a few friends and we''ve all been wondering the same thing. One of my friend''s husband bought some stock when it was ultra low, under .20 a share, and it went up to $4.00 or so but I''m not sure if he''s kept it or sold it before it slowly went down a bit, therefore not really making any additional ''play money.'' I know this is silly, but I thought what if I bought $500 of a really cheap stock. Could I make $5,000 or am I just dreaming?

stay away from those penny stocks !!.

you have a better chance of hitting the lotto.

 

[AGBF]

Date: 10/6/2008 2:49:38 PM
Author: purrfectpear
Ding, Ding....we have a winner. I don''t know what everyone else is smoking but today''s issue is strictly a reaction to the global market.

I won? I am going to have to have my computer bronzed! My husband will otherwise not believe that I was even close on anything related to finance. As I have confessed, I have trouble hanging onto the concept of a bond! Thank you for making me a winner today!


Deb

 

[Dancing Fire]

Date: 10/6/2008 2:42:57 PM
Author: Beacon
Poor Cramer. He gets so excited. I hope he doesn''t drop dead during this market.

It makes me want to puke on my shoes

, but I did buy some stocks today. The whole market in fact, the SPY. I could be dreadfully wrong, but I am willing to wait and collect dividends in the meanwhile. So I''ll take some more little bites into this horrid mess.

me too. bought some more UYG today.

buy when everybody throws in the towel.

 

[Kaleigh]

Could very well be a good time to buy. Last time I listened to my dad shortly before the crash, I lost my shirt. I think the consumer confidence is at an all time low, the dollar sucks. Then you have everyone talking over the weekend, doom and gloom. The bail out won''t work, so no wonder today was a mess. No wonder I hate Mondays. How''s that for a very simple answer, LOL. Although am not laughing.

 

[NewEnglandLady]

Date: 10/6/2008 7:18:01 PM
Author: Kaleigh
Could very well be a good time to buy. Last time I listened to my dad shortly before the crash, I lost my shirt. I think the consumer confidence is at an all time low, the dollar sucks. Then you have everyone talking over the weekend, doom and gloom. The bail out won''t work, so no wonder today was a mess. No wonder I hate Mondays. How''s that for a very simple answer, LOL. Although am not laughing.

Agreed, Mondays have been very bad for the stock market recently

We bought today as well, though the market is so thinly traded that filling our limit orders is a bit comical...you''ll buy a few thousand shares of something and it''s filled 500 at time.

I agree that the market is reacting to global factors and with consumers being frozen with fear (can''t say I blame them...in fact, I am, too) the market can''t make a recovery. I think the lack of recent inflation of the dollar is helping us from sinking into a depression (along with sustained empolyment and GDP), though if the dollar does start to rapidly inflate, it could be the straw that broke the camel''s back.

 

[miraclesrule]

If you want to really understand the current economic crisis and why the bailout will only scratch the surface, you need to understand credit default swaps. This link will take you to a summarized, but great primer, that was in Newsweek.

Why our economy is in the toilet

 

[shel]

Date: 10/6/2008 6:48:45 PM
Author: Dancing Fire

Date: 10/6/2008 2:42:57 PM

Author: Beacon

Poor Cramer. He gets so excited. I hope he doesn''t drop dead during this market.


It makes me want to puke on my shoes

, but I did buy some stocks today. The whole market in fact, the SPY. I could be dreadfully wrong, but I am willing to wait and collect dividends in the meanwhile. So I''ll take some more little bites into this horrid mess.

me too. bought some more UYG today.

buy when everybody throws in the towel.

Consider buying XLF instead. It''s also a financial sector ETF but has a much lower expense ratio (0.23% vs. 0.95%).

 

[Beacon]

Date: 10/6/2008 8:40:03 PM
Author: shel

Date: 10/6/2008 6:48:45 PM
Author: Dancing Fire

Date: 10/6/2008 2:42:57 PM

Author: Beacon

Poor Cramer. He gets so excited. I hope he doesn't drop dead during this market.


It makes me want to puke on my shoes

, but I did buy some stocks today. The whole market in fact, the SPY. I could be dreadfully wrong, but I am willing to wait and collect dividends in the meanwhile. So I'll take some more little bites into this horrid mess.

me too. bought some more UYG today.

buy when everybody throws in the towel.

Consider buying XLF instead. It's also a financial sector ETF but has a much lower expense ratio (0.23% vs. 0.95%).

These financial stocks are a panic, huh? BAC had unpleasant news after hours. It's going to be a slog.

 

[Dancing Fire]

Date: 10/6/2008 8:40:03 PM
Author: shel

Date: 10/6/2008 6:48:45 PM
Author: Dancing Fire

Date: 10/6/2008 2:42:57 PM

Author: Beacon

Poor Cramer. He gets so excited. I hope he doesn't drop dead during this market.


It makes me want to puke on my shoes

, but I did buy some stocks today. The whole market in fact, the SPY. I could be dreadfully wrong, but I am willing to wait and collect dividends in the meanwhile. So I'll take some more little bites into this horrid mess.

me too. bought some more UYG today.

buy when everybody throws in the towel.

Consider buying XLF instead. It's also a financial sector ETF but has a much lower expense ratio (0.23% vs. 0.95%).

i know, but UYG was down a higher % today. i was also looking at KBE.

 

[stone_seeker]

XLF??? Ughh...so many better sectors than financials. Banks going to have a hard time making money in the near future. The business is going to be very slow growth with much more pain in the future. Tech should lead any recover but not for a while. Play some defense and nibble at stocks that you like but didnt want to buy at 2-3x these levels.

 

[shel]

Date: 10/6/2008 9:08:19 PM
Author: stone_seeker
XLF??? Ughh...so many better sectors than financials. Banks going to have a hard time making money in the near future. The business is going to be very slow growth with much more pain in the future. Tech should lead any recover but not for a while. Play some defense and nibble at stocks that you like but didnt want to buy at 2-3x these levels.

Didn''t buy XLF. I''m not into sector funds, so I''ll stick with the broad asset classes.

 

[shel]

Date: 10/6/2008 2:42:57 PM
Author: Beacon
Poor Cramer. He gets so excited. I hope he doesn''t drop dead during this market.


It makes me want to puke on my shoes

, but I did buy some stocks today. The whole market in fact, the SPY. I could be dreadfully wrong, but I am willing to wait and collect dividends in the meanwhile. So I''ll take some more little bites into this horrid mess.

You probably know this and not to be picky, but SPY is not the whole market. It''s a decent slice of the market, if weighted by market cap, but technically the S&P 500 is not the whole market. Just saying.

 

[Beacon]

Date: 10/6/2008 9:08:19 PM
Author: stone_seeker
XLF??? Ughh...so many better sectors than financials. Banks going to have a hard time making money in the near future. The business is going to be very slow growth with much more pain in the future. Tech should lead any recover but not for a while. Play some defense and nibble at stocks that you like but didnt want to buy at 2-3x these levels.

No kidding. I am in total awe of the prices crossing the tape. Man, low, low, low. Tech has the cleanest balance sheets. The big guys have minimal debt, they can ride this out. They will suffer though, no way around it. I like stocks that pay a dividend. We could be waiting a while.

But there are opportunities emerging.

 

[Beacon]

Date: 10/6/2008 9:37:57 PM
Author: shel

Date: 10/6/2008 2:42:57 PM
Author: Beacon
Poor Cramer. He gets so excited. I hope he doesn't drop dead during this market.


It makes me want to puke on my shoes

, but I did buy some stocks today. The whole market in fact, the SPY. I could be dreadfully wrong, but I am willing to wait and collect dividends in the meanwhile. So I'll take some more little bites into this horrid mess.

You probably know this and not to be picky, but SPY is not the whole market. It's a decent slice of the market, if weighted by market cap, but technically the S&P 500 is not the whole market. Just saying.

You are correct. I just look at the SPY as a whole market proxy, because it will capture the bulk of whatever direction the market heads. But technically you are right, it's a slice.

 

[MichelleCarmen]

Date: 10/6/2008 6:39:02 PM
Author: Dancing Fire

Date: 10/6/2008 2:41:09 PM
Author: MC

Date: 10/6/2008 12:43:43 PM
Author: Beacon
We can go lower from here. But fear is at such a high level that one has to start making a list of stocks that are of interest at such reduced prices.

Is there any possible way to make any money if a person was to invest a very small amount in stock? I''ve talked to a few friends and we''ve all been wondering the same thing. One of my friend''s husband bought some stock when it was ultra low, under .20 a share, and it went up to $4.00 or so but I''m not sure if he''s kept it or sold it before it slowly went down a bit, therefore not really making any additional ''play money.'' I know this is silly, but I thought what if I bought $500 of a really cheap stock. Could I make $5,000 or am I just dreaming?

stay away from those penny stocks !!.

you have a better chance of hitting the lotto.

Okay, thanks Beacon and DF. Only recently I''ve been reading up on the economic issues going on and it seems there is A LOT of info coming in and out from every media source and my brain is on overload as far as both understanding all this and trying to make the most from it. My friend''s husband said Starbucks would be a good bet. . . I think I''ll just pass on all that for now. I may need that $500 if bread goes up to $10 a loaf

 

[Dancing Fire]

forget about Dow 10,000 here comes 9000 looks the S&P will hit 950 soon.

 

[MichelleCarmen]

Can someone explain what "rally" is? I was reading that after yesterday''s rally, the dow went back up a bit. Is that correct and what all does that mean? Thanks.

Sorry for such a novice question. I have to admit that the LOWEST grade I received in college was in Economics!

 

[Dancing Fire]

Date: 10/7/2008 4:02:38 PM
Author: MC
Can someone explain what ''rally'' is? I was reading that after yesterday''s rally, the dow went back up a bit. Is that correct and what all does that mean? Thanks.

Sorry for such a novice question. I have to admit that the LOWEST grade I received in college was in Economics!

remember in high school when they had a "rally" before a football game?

 

[MichelleCarmen]

Date: 10/7/2008 4:17:52 PM
Author: Dancing Fire

Date: 10/7/2008 4:02:38 PM
Author: MC
Can someone explain what ''rally'' is? I was reading that after yesterday''s rally, the dow went back up a bit. Is that correct and what all does that mean? Thanks.

Sorry for such a novice question. I have to admit that the LOWEST grade I received in college was in Economics!

remember in high school when they had a ''rally'' before a football game?

ugh, this goes back to my husband''s theory that in amercian society we never truely "leave" high school.

 

[strmrdr]

Date: 10/7/2008 3:48:40 PM
Author: Dancing Fire
forget about Dow 10,000 here comes 9000 looks the S&P will hit 950 soon.

forget 9000 the bottom is in the 8000 range.

 

[purrfectpear]

A market rally is like someone saying Palin''s debate performance didn''t majorly suck.

When the bar is set low, any upward movement is a "rally"

 

[Allisonfaye]

Now we are just in panic and rumor mode. They spread a rumor (false) about a deal with Mitsubishi and Morgan Stanley falling through and the MS stock tanked and so did all the other financials. I really hope they nail these people who are manipulating markets but I doubt they will.

 

[Dancing Fire]

Date: 10/7/2008 7:42:06 PM
Author: Allisonfaye
Now we are just in panic and rumor mode. They spread a rumor (false) about a deal with Mitsubishi and Morgan Stanley falling through and the MS stock tanked and so did all the other financials. I really hope they nail these people who are manipulating markets but I doubt they will.

you can always short the market.

 

[Dancing Fire]

what 10,000 ???