It's official: We're in a stock market correction

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V

Viligant_Warrior

Guest
#1
The Dow fell an additional three percent today, to 16,459.75, -530.94 from yesterday's close. Added to the 2% drop Thursday, these two days make up half of the ten percent value loss since the end of May. The S&P 500 lost nearly 65 points, and the NASDAQ is down almost 172 points from Thursday.

All stocks opened in negative territory and kept going down, the Dow in the last 15 minutes of the session losing over 120 points. The NYSE Big Board didn't catch up with selloff activity until nine minutes after close, so volatile was the session. In this day and age of computers, that's virtually unheard of.

There's a lot of debate today about "Is this a correction?" I don't think there's any doubt about it, and due to the overall world economic retraction, bordering on collapse in some countries, it's going to get worse, in my uneducated opinion.


Stocks Slammed for Second-Straight Session on Global-Growth Worries

Wall Street plunged for a second-straight day, forcing all three major U.S. averages to give up their 2015 gains, with the Dow nearing correction territory.

All 10 S&P 500 sectors were in negative territory, with energy and technology leading the way lower for the second day in a row, dropping 2.77% and 3.78% respectively.
Correction is one thing. The question now becomes, is this a renewed global crisis -- or perhaps more accurately, is this a continuation of a crisis we thought was over, but was just hiding in the weeds for the last four year? Recovery worldwide has been lethargic at best, and in some financial markets, non-existent. The collapse of China's economy could be the biggest domino in a long string that will tumble down in order.
 
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3

3Scoreand10

Guest
#2
I am glad all my investments are in lead, brass, and non perishable food.
The value goes up every day.
 
J

jonl

Guest
#3
What's amazing is that after the 2008 crash and bailout of the banks TBTF, the US Fed has been able to journalize trillions (without collateral) to keep the economy going until now.
 
H

Hellooo

Guest
#4
Market down, and a VIX over 20...I'm a-gonna shop for beaten down stock. But that's just my appetite for risk, carry on.

 
Dec 12, 2013
46,515
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#5
I am glad all my investments are in lead, brass, and non perishable food.
The value goes up every day.
HAHAHHHA me too bro.....We will be millionaires (in goods and ammo) when the crap fully hits the fan, the dollar fails and the grocery stores are empty in three days...
 
Dec 12, 2013
46,515
20,395
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#6
The Dow fell an additional three percent today, to 16,459.75, -530.94 from yesterday's close. Added to the 2% drop Thursday, these two days make up half of the ten percent value loss since the end of May. The S&P 500 lost nearly 65 points, and the NASDAQ is down almost 172 points from Thursday.

All stocks opened in negative territory and kept going down, the Dow in the last 15 minutes of the session losing over 120 points. The NYSE Big Board didn't catch up with selloff activity until nine minutes after close, so volatile was the session. In this day and age of computers, that's virtually unheard of.

There's a lot of debate today about "Is this a correction?" I don't think there's any doubt about it, and due to the overall world economic retraction, bordering on collapse in some countries, it's going to get worse, in my uneducated opinion.


Correction is one thing. The question now becomes, is this a renewed global crisis -- or perhaps more accurately, is this a continuation of a crisis we thought was over, but was just hiding in the weeds for the last four year? Recovery worldwide has been lethargic at best, and in some financial markets, non-existent. The collapse of China's economy could be the biggest domino in a long string that will tumble down in order.
Been saying it was coming and yes...it will eventually get worse and finally collapse completely....
 
Aug 13, 2013
965
8
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#7
Washington did not fix the problem like they promised? What happened to the recovery summer? :D
 
S

Sirk

Guest
#8
It's a rigged game.
 
A

atwhatcost

Guest
#9
The Dow fell an additional three percent today, to 16,459.75, -530.94 from yesterday's close. Added to the 2% drop Thursday, these two days make up half of the ten percent value loss since the end of May. The S&P 500 lost nearly 65 points, and the NASDAQ is down almost 172 points from Thursday.

All stocks opened in negative territory and kept going down, the Dow in the last 15 minutes of the session losing over 120 points. The NYSE Big Board didn't catch up with selloff activity until nine minutes after close, so volatile was the session. In this day and age of computers, that's virtually unheard of.

There's a lot of debate today about "Is this a correction?" I don't think there's any doubt about it, and due to the overall world economic retraction, bordering on collapse in some countries, it's going to get worse, in my uneducated opinion.


Correction is one thing. The question now becomes, is this a renewed global crisis -- or perhaps more accurately, is this a continuation of a crisis we thought was over, but was just hiding in the weeds for the last four year? Recovery worldwide has been lethargic at best, and in some financial markets, non-existent. The collapse of China's economy could be the biggest domino in a long string that will tumble down in order.
Oddly different thoughts to this:
1. Politically speaking, the market starts getting better in three years according to historic observations from the last 40 years. It takes two years for the next President to fix the blunders of the previous President.

2. Personal observations and memories: When we've had stock, it was a guarantee we had to sell it when the floor fell in the market. We made a practice of not watching our portfolio too closely, but it happened to us twice with the same results. We broke even after seeing it double. The first time, we saw the stock Dad gave us as a wedding present double in the two years and three months we owned it. At two years two days into our marriage, hubby broke his back. Three months later, (and never count on the State of NJ to be fair or quick with workman's comp), we ran out of money so had the sell -- the day after it split and the same day the stock market tanked. The second time our retirement money was diversified properly with stocks and municipal bonds. We had a low six figure amount, but we also had 12-21 more years before retirement. (He's 9 years older than I am.) Three jets crashed into three buildings, the planes were grounded for three days causing many product-oriented businesses to die, I was already disabled, hubby lost his job and a year later he became disabled. When we cashed out, the amount was half what it was and then the feds took 1/3rd of what was left for taxes and 12% for "penalties," and poof. Not much left to live on after that. Just about the same as we put in of our money. The good news is the economy no longer effects us.

3. Financial advice that has worked for anyone we've ever known to follow this plan -- Invest in Blue Chip companies. The top ten of the S & P. Even during the crash of 2007-2008, they kept rising by 2%. Thanks to my brother's efforts, (he's a financial planner), Dad padded his his financial cushion well those years. (Very well other years.) He made much more than he used, and he's been retired for 30 years.
 
A

atwhatcost

Guest
#10
I am glad all my investments are in lead, brass, and non perishable food.
The value goes up every day.
Unless you use the lead to make balloons. Then it goes down. lol
 
V

Viligant_Warrior

Guest
#11
"And that's the way it is ... " (with apologies to Walter Cronkite)

Wall Street Slammed Amid Global-Growth Fears

U.S. equity market capped a tumultuous trading day solidly in negative territory after shedding about $812 billion in market value.

The Dow Jones Industrial Average wiped out 588 points, or 3.58% to 15871. The S&P 500 dropped 77 points, or 3.94% to 1893, while the Nasdaq plunged 179 points, or 3.82% to 4526.

All ten S&P 500 sectors were in negative territory, with energy declining the most, shedding 5.18% on the session

Today’s Markets
The Dow saw its biggest-ever intraday point drop on Monday at the opening bell as it plunged 1,089 points. By the close of trade, all three major U.S. averages were in correction territory.


The major thing to remember here is, this is just a correction. As I said last Friday. It isn't the beginning of the next Great Depression, but it probably is a continuation of a recession from which clutches we've never truly escaped.

The good news is, there is now absolutely no way the Fed raises interest rates this year. Mortgage rates and car loans will still be cheap with good credit, and while the number of 30-day graces period credit cards continues to dwindle, the rates will at least continue to be reasonable. Gas prices will continue to fall as refineries are brought online that will alleviate the pressure on oil processors who are way behind in turning the oil glut into actual product.

So don't go jumping off any buildings, and if you want a new house, buy one, and the same if you want a new car. Your IRAs and 401(k)s will will a little light in the loafers for a few months, but they'll bounce back as the market gurus redefine their investment strategies.
 
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V

Viligant_Warrior

Guest
#12
Then there's this guy ...



... must've lost everything he had invested in porcelain for his new false teeth. Or maybe it was moustache wax? Hair restoration products? Oh, well, whatever, he lost it.

Guy on the left must be his "deer-in-the-headlights" intern: "Should I cry, boss, or just throw up?"

Actually, both of 'em just found out their wives know they were on "Ashley Madison."
 
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S

Sirk

Guest
#13
[video]http://hiddensecretsofmoney.com/videos/episode-1[/video]
 
S

Sirk

Guest
#14
In all the history of the world...no fiat currency has ever survived....and there are more than 600 of them that start with the letters "A" and "B". Wonder how many there are from c to z?????? lol.

To say that the dollar is gonna be different is very very wishful thinking.
 

Angela53510

Senior Member
Jan 24, 2011
11,780
2,936
113
#15
According to the latest emails from our financial advisor, this "downturn" is going to be short lived, and not to sell. My husband is cursing himself that he didn't sell long ago.

And yes, we will probably lose everything we made, for the second time. The game is rigged, no doubt about it.
 

Billyd

Senior Member
May 8, 2014
5,034
1,473
113
#16
According to the latest emails from our financial advisor, this "downturn" is going to be short lived, and not to sell. My husband is cursing himself that he didn't sell long ago.

And yes, we will probably lose everything we made, for the second time. The game is rigged, no doubt about it.
IMHO Your FA is giving you pretty good advice. We're still waiting and shopping for bargains.
 
H

Hellooo

Guest
#17
The gut response for many is to buy into fear and panic, but really, why would one sell during a downturn? If that's your response I question if you should have been investing to begin with. Or if you truly have an understanding of managing risk.
It's a good time to evaluate your big picture financial needs and goals, and make sure you're appropriately allocated for those, keeping in mind that if you invest, there is market risk. If you sit in cash, you're looking at purchasing power risk.
The fed seems to be developing an itchy trigger finger with hints towards raising rates. Personally, I think it's unlikely in the near term, but if they do, for those folks who are well diversified between equities and fixed income, they'll find that the fixed income portion of their portfolios will perform well, while the equity portion may take a hit. If you've got a short term time frame, or a need for liquidity, you probably have no business having your assets invested anyway, regardless of whether the market is performing really well or poorly.
For those with longer term goals, emergency funds in place, you really do yourself a disservice by not doing your research on current buying opportunities.

IMHO Your FA is giving you pretty good advice. We're still waiting and shopping for bargains.
Billy, nice to see someone ignoring the noise.

I'm obviously pretty biased here because of the field I work in, but I have to roll my eyes at the doom and gloom headlines.
 
A

atwhatcost

Guest
#18
According to the latest emails from our financial advisor, this "downturn" is going to be short lived, and not to sell. My husband is cursing himself that he didn't sell long ago.

And yes, we will probably lose everything we made, for the second time. The game is rigged, no doubt about it.
Yup. The game is rigged! God wins!
 
V

Viligant_Warrior

Guest
#20
According to the latest emails from our financial advisor, this "downturn" is going to be short lived, and not to sell. My husband is cursing himself that he didn't sell long ago.

And yes, we will probably lose everything we made, for the second time. The game is rigged, no doubt about it.
At 11:45 a.m. CDT today, we've recouped half of what we lost yesterday. Leave your money where it is. It will be fine.