Wow... bad day for the market.

Didn't want to hear that. This is due because the interest rate is going up!

I don't think rates will be raised in Sept, or anytime in the remainder of 2015. But yea.....today was not good. Worst week for the S&P in 4+ years.

I manage a research and support team for a financial data provider and our phones have been deadly quiet today. So everyone has been full on to the grindstone apparently.

Markets? What a wonderfully irrational way of regulating a global economy. Well at least they boom and bust with a mathematically precision that make theoretical physicists envious! lol

Plan your retirement wisely, you need to hit the crest not the trough!

motorhead43026 wrote: »

Nothing to do with rates, the global economy is slowing. If the threat of rising rates does the market in, you don't have a real market to begin with.

Yes, add to that China devaluing its currency to preserve its manufacturing base and maintain stability for them and other countries doing the same to keep up, making exports more difficult for every other country. Global slowdown and past due for a market correction in the U.S. anyway. Probably bounce back a bit early next week then who knows what's next.....

At least gas is cheaper!

Get ready for Monday, should be interesting. If the Sept. correction that I've mentioned before is starting now, be prepared for worse selloffs in the coming weeks. Could be worse than the 2008 correction and that one hurt. QE didn't do much for us in the U.S. and the European QE isn't any better. Kick the can down the road a little longer til the SHTF.

Not really a lot of difference between devaluing currency and Q E. Both methods do nothing more than "print money out of thin air".

Yeah, I'm a supply sider.

Time for the markets to over correct. Personally wouldn't be surprised to see 20%, probably closer to 25.

The U S stimulus didn't work 6 years ago, there is no 1.xx multiplier effect, it's closer to 0.6. Devaluing currency normally makes matters worse, commodities artificially inflate.

Think I'm about 40% bonds at the moment. Start moving that back to stocks
When the S and P hits about 1750 or so.

Was listening to the financial news on the way home from work. As said above, everyone is freaking over the Chinese and what they're doing. What they also mentioned is this sort of "800 lb Gorilla" thats sitting out there. It's the $1.2 Trillion in outstanding student loans, with the default rate climbing and climbing. And then there are Auto Loans that are outstanding as well, ringing in at about $890 billion, an all-time high. It only takes another slow down in the economy to force layoffs again...which is right where we appear to be headed.

How quickly we forget these market bubbles and recessions of recent years. Glad my Honda Accord and Harley have been paid off for years.

The good news...when things take a dump again...lots of stocks will be on sale!

Chickens are coming home to roost

Joey_V wrote: »

Mikey081057 wrote: »

Chickens are coming home to roost

Where these chickens at?

Pollo Loco

I do not view today's drop of over 500 points to be "the end of the world" as some may allude to. I was very active in the market for many years, nothing was more crushing then 2007 - 2008. If you know what you are doing, hopefully, you will see the silver lining of opportunities amid this artificial chaos.

Joey, if your financial planner recommends a complete sell off. I recommend you a different financial planner. If all your eggs were placed into one basket, you lack diversity and the ability to hedge. Which, in that case, sell off the company of your financial advisor as well.

Halen

Joey, you are still young and have years of work ahead of you. If your FP has been doing his job, he has you well diversified. And as I've said you have more than enough time to recover from whatever happens.

I had a friend badger me to put most of her money into her cash account back when the market was acting flaky years ago. I told her to just sit tight and it would come back. Her answer was I will soon retire.

She was still there when the market came back but lost out because she was playing it safe. Needless to say, she retired with a lot less in her 401k then would have been there if she hadn't gotten scared.

I'm well diversified and my FP knows what he's doing. I have seven years to go before I get out. All of this stuff, I simply ignore.

These last few weeks were inevitable...China has blown up a bigger balloon than we did in 2008. It's a lot easier to actually follow real property than decipher the global market.
http://www.dailymail.co.uk/news/article-1391868/This-city-built-million-people--lives-here.html

There are still empty residential/commercial properties nation wide even hot spots like Florida
http://www.nj.com/news/index.ssf/2009/08/nj_family_is_sole_tenant_in_fl.html

It's not to hard to read that we still have high unemployment, high debt, empty property that the market was grossly inflated.

the only reason companies rebounded is because they trimmed all the fat to the bone. USA has exported all our labor and material production outside the U.S. not only because of cheap labor but because corps/business' are taxed to death.

I own my own business and every time i try to move upward to provide my employees with better benefits and to hire more people, there is a tax ceiling that blocks my expansion. Basically I am frozen and so is the global economy. Gov'ts world wide are over spending on crud WE can't afford.

WE THE PEOPLE trimmed our fat but the Govt's didn't

Unless you are a day trader or financial advisor....or planning on retiring in the next year or less.....does the drop really effect you? And if you were planning on retiring soon, you should have already shifted some of your portfolio to bonds and lower risk funds.

All you guys make good points, valid ones too, but we have an over abundance of 800lb. Gorillas in the room.
China has a plan, and to accomplish that plan they need to meet certain criteria with their currency and banking system as set forth by the IMF.

Whats the plan ? To have their currency include in the basket of reserve currencies used globally. Which btw may or may not be announced this fall, but China is pushing hard for it. If it does by chance happen....game changer.

Kev,
Yes, it affects everyone. If you contribute to a 401k....pension fund, that worth just took a hit. Stock value is also used to borrow money against, less value means less borrowing which means companies have less to invest for expansion or new hires. Your local governments also invest in stock and other financial instruments. If they have less to work with, who do you think they will turn to for more money ? You of course, by way of higher taxes, which affects everyone.

Going into an election year, I see the markets getting into the 10-12k range realistically. It was way overpriced to begin with.