Dow Jones on a roller-coaster ride, again? - WTF!

polkatese

The day before yesterday's news was, DJ reached the highest level in 5 years! And then Bernanke raised the Fed rate .25 point, yesterday. Market was still upbeat, that the raise has been "accounted for" in the forecast.

This afternoon, the news is as such:

NEW YORK (Reuters) - U.S. stocks tumbled on Thursday, with all indexes registering their second-worst day of the year as a jump in crude oil prices revived worries about inflation and prospects for higher interest rates.

Oil prices shot higher due to supply worries after outages at U.S. oil refineries, a day after the Fed hinted that more interest-rate hikes might be needed to keep inflation at bay. For details, see .

Based on the latest available data, the blue-chip Dow Jones industrial average <.DJI> fell 141.76 points, or 1.22 percent, to end unofficially at 11,500.89. The Standard & Poor's 500 Index <.SPX> slid 17.06 points, or 1.29 percent, to finish unofficially at 1,305.79. The Nasdaq Composite Index <.IXIC> dropped 48.16 points, or 2.08 percent, to close unofficially at 2,272.58.

WTF? Where are our smart economists? where is our smart leader(s)? Is the war over yet? cause you know, market is easily spooked by those daily news-feed from Baghdad.

*end rants*

Skynut

Long term investing has it's ups and downs.

I try not to look too often unless I have more money to pump in.

It is just a global form of gambling.

Demiurge

It's 220 some odd points away from it's all time high, I wouldn't worry about it. May is traditionally a **** month, but we're having a great month so far.

HBombToo

stay with large cap and ride out the storm...

Zen Dragon

The market was hopeful another interest rate hike was not going to happen. I think the market had a 50/50 chance factored in and it hit the wrong 50.
Oil prices will continue to drive this market. Premium in WA state is like $3.25 a gallon, more in Cali. At these prices it absolutely impacts recreational spending. For many it is impacting spending on semi-essential items.
Until we releive the oil markets the overall economic picture will remain volatile.
The real variable to watch closely is the housing market.
just my .02

Skynut

If the housing market starts to fall and oil keeps rising I think we are gonna have problems.

It feels like our economy is always teetering on the edge of major financial problems.

Demiurge

We're probably having the best economy of the last 20 years. Why do you predict some kind of a crash when it's been on the up-swing since 2001? It's gone up almost 1,000 points in 3 months if you don't include the 1-day slide we had today.

Skynut

Just over all I worry about the rising deficit, oil prices, housing prices, and global influences.
Everything is going up faster than most wages which puts a strain on our economy.
Just my personal opnion but I do not trust the Enron mentality that I feel is a large part of our government.

I am probably just paranoid but I wish I owned more gold right now.

polkatese

This morning I was watching Jim from Mad Money, praising the commodities market, everything upbeat, and he has an answer for the exurberant. Tomorrow, I am sure he will said something to support WHY it crashed! These folks seem to have explanations for everything! Hindsight is 20/20, I love to corner him tomorrow with a question: "what could have changed in 24 hours that your crystal ball was completely out of whack?"

tonyb

Old saying from tradeing"sell in May and go away"
'till the traders all come back at the end of August.

shack

Buy smart and hold!

aaharvel

it'll bounce back soon enough.

PolkThug

fuhgettaboudit!

schwarcw

You gotta have some balance in the portfolio and be in it for the long term. There are a lot of broke day traders out there.

markmarc

The market is only going to get more hyper, instant news/info makes for the roller coaster effect. Plus, the best way to become a big name on Wall Street is to nail some company with a bad prediction. Stay diversified and ignore the day to day trading. I look at my portfolio numbers once a week. Keeps me sane.

Skynut

Ditto on the once a week thing.
I look at mine once a week or less.
Unless I have money burning a hole in my pocket then I am doing research.

shack

I rarely look at my portfolio. Not much reason to. I purchased everything for the long term. I do keep abreast of the specific companies and industries that I have invested in to make sure I understand the fundimental issues that could affect the performance of the stock. The nuances of the market are unimportant to my investment strategy. I generally don't like mutual funds and prefer individual stocks of companies and industries I understand.

cfrizz

Buy & hold & ignore the day to day bs!

I went for 2 yrs & ignored my mutual funds & my 401K. If I had looked I would have done something as stupid as my coworker who insisted on me changing a good portion of her stuff over to her fixed account!

She could have retired a yr ago if she had just left it alone!