A very Scary Day today Stock Market

[runningman]

Well what if I told you that foreclosures was on the rise (which is an understatement) and unemployment numbers came in today which also shows unemployment is steeply on the rise. Would you invest your money in the stock market today?? How the hell did it go up 260 points today on such depressing news?

Sean let me know what you think since you are closest to Wallstreet on here.

[88Mariner]

Re: A very Scary Day today Stock Market

um, there are incredible deals out there? people tend to buy low, and this is pretty damn low for things. the anticipation is that this will be resolved over the long run--which it will.

[toasty]

Re: A very Scary Day today Stock Market

Well what if I told you that foreclosures was on the rise (which is an understatement) and unemployment numbers came in today which also shows unemployment is steeply on the rise. Would you invest your money in the stock market today?? How the hell did it go up 260 points today on such depressing news?

Just a guess, but I'd say the market has already worked the shitty economic climate into the equation. We already knew things were shitty yesterday, and we knew yesterday that the jobs report to come out today was going to be extremely shitty, so it didn't really change anyone's mind about anything when it was, in fact, shitty.

[Miroslav]

Re: A very Scary Day today Stock Market

I'm not Sean, but I'll let you know what I think:

1. Every day on the market these days is scary.

2. You're trying to draw conclusions based on one day's worth of data, which is hopeless. Don't do that. Any statistician will tell you that one data point does not constitute a trend.

There are a ton of possible reasons as to why the market rebounded today, such as timing of news releases, bargain hunting after recent declines, timing of hedge fund asset sales to deleverage and cover margin, etc. You have 0% chance of accurately predicting and interpreting these events at the daily level. This is in essence of why it is very hard for most investors to consistently outperform the market.

In general, the markets are pricing in the poor economic outlook. All indiced have drastically fallen this year, and they will probably continue their downward trend in the coming months. It's already stacking up as one of the worst years in history.

[runningman]

Re: A very Scary Day today Stock Market

I just thought it was weird that people would invest knowing they are throwing their money away.

[shosh]

Re: A very Scary Day today Stock Market

I just thought it was weird that people would invest knowing they are throwing their money away.

go back to your home

[Miroslav]

Re: A very Scary Day today Stock Market

I just thought it was weird that people would invest knowing they are throwing their money away.

It depends on your time horizon for expected return. Many investors are not day traders; they may be hoping to get in at a cheap valuation today and recognize that there will be no payoff until maybe 5, 10, 15 years from now.

[Localizer]

Re: A very Scary Day today Stock Market

I just thought it was weird that people would invest knowing they are throwing their money away.

For someone who likes to be a nostradamus, you sure as hell didn't account for the day/swing traders. People aren't throwing their money away; most are stategically buying and selling. And despite your doom and gloom, there has been good news, which is why dry bulk carriers had such a huge boost today -- China is in talks with Rio and BHP Billiton about purchasing more iron ore.

[thesightless]

Re: A very Scary Day today Stock Market

amazing. utterly amazing how people can honesty fathom a return quickly. the snow ball effect is only beginning. in the last month half a million jobs were lost, what happens when thier savings dries up and they begin to default? and buy less?

if any of you think things are gonna get better soon, please, for the sake of my migraines, go the fuck back to college and this time, study one of the following three cores : accounting, economics, and finance.

simply put, there are people talking about the markets that know DICK about anything pertaining to modern day economic models, captialism, taxation, funding, trade, revenue streams, etc.

[Localizer]

Re: A very Scary Day today Stock Market

amazing. utterly amazing how people can honesty fathom a return quickly. the snow ball effect is only beginning. in the last month half a million jobs were lost, what happens when thier savings dries up and they begin to default? and buy less?

if any of you think things are gonna get better soon, please, for the sake of my migraines, go the fuck back to college and this time, study one of the following three cores : accounting, economics, and finance.

simply put, there are people talking about the markets that know DICK about anything pertaining to modern day economic models, captialism, taxation, funding, trade, revenue streams, etc.

No one is 'fathoming a return quickly'. There are people that are dam good at options trading and at technical analysis, shit let alone trading. Many people are making good money right now through the markets. To sit here and speculate and wonder why the markets went up is stupid, and honestly, doesn't take rocket science, or even a college degree to figure out why - there are just good buys with undervalued companies. It's going to go back down, as it has in the past because it's just a volatile situation.

[Johnnyboy]

Re: A very Scary Day today Stock Market

I have been a Financial Advisor for over 9 years now. So you know my background, I have my series 7, 66, 24, 4, 51, LAH, CRPC® and I sat for my CFP® in November. I do not write here to say I have the solution for this market, nor do I say I have all of the answers. Anyone that says that is full of BS. What I can say is that if you are under the age of 35 and your main goal for your future and investments is to retire at some point and time in the future, then you all should be licking your chops right now. When the market was at its low this year, everyone thought the US Markets were done. I though what a great buying opportunity for me and my retirement accounts. I would urge all of you that have short term needs for your savings (i.e. less than 2-3 years, new home purchase, school, etc.) keep your money in cash and cash equivalents. It is the best bet for you. If you need money in 5-7 years, buy quality companies, stock and bonds. If you are in a state with State Income Tax, look a high quality Muni Bonds. They are paying 180 basis points over treasury securities yields right now and you get a tax-exempt yield with only a little more risk.
If you are worried about your 401(k) / 403(b) / IRA, don’t be if you are under 35…
My advice to all of you is BUY EQUITIES!!! Look at the major indexes, S&P, Dow, MSCI EAFE and find some companies, or mutual funds with a good track record, tenured managers and start buying through dollar cost averaging. It is a technique intended to reduce exposure to risk associated with making a single large purchase. In this way, more shares are purchased when prices are low and fewer shares are bought when prices are high. The premise of dollar cost averaging is that the investor wants to guard against the market losing value shortly after making his investment.
If you believe in efficient market hypothesis start saving now, do it monthly through a systematic approach and every year when you get raises, apply those dollars towards your savings plan.
Those that start saving early can stop saving in the future and have more money that someone that starts late and saves more late. It is compounding interest / Time Value of Money that will pay off huge in the long run.
Be strong my MS crew and be dedicated to saving now… You will tank me in the future.
My $.02
JR

[thesightless]

Re: A very Scary Day today Stock Market

are you an analyst or sales?

i know financial advisors that are simply sales guys.

i.e. front or back of house?

personally im a back house person. i evaluate a variety of investments, focused on equity buys and stock evaluations. i stay away from the risk based commodities and things like pension investments... too annoying and more for the actuaries.

[floridaorange]

Re: A very Scary Day today Stock Market

I have been a Financial Advisor for over 9 years now. So you know my background, I have my series 7, 66, 24, 4, 51, LAH, CRPC® and I sat for my CFP® in November. I do not write here to say I have the solution for this market, nor do I say I have all of the answers. Anyone that says that is full of BS. What I can say is that if you are under the age of 35 and your main goal for your future and investments is to retire at some point and time in the future, then you all should be licking your chops right now. When the market was at its low this year, everyone thought the US Markets were done. I though what a great buying opportunity for me and my retirement accounts. I would urge all of you that have short term needs for your savings (i.e. less than 2-3 years, new home purchase, school, etc.) keep your money in cash and cash equivalents. It is the best bet for you. If you need money in 5-7 years, buy quality companies, stock and bonds. If you are in a state with State Income Tax, look a high quality Muni Bonds. They are paying 180 basis points over treasury securities yields right now and you get a tax-exempt yield with only a little more risk.
If you are worried about your 401(k) / 403(b) / IRA, don’t be if you are under 35…
My advice to all of you is BUY EQUITIES!!! Look at the major indexes, S&P, Dow, MSCI EAFE and find some companies, or mutual funds with a good track record, tenured managers and start buying through dollar cost averaging. It is a technique intended to reduce exposure to risk associated with making a single large purchase. In this way, more shares are purchased when prices are low and fewer shares are bought when prices are high. The premise of dollar cost averaging is that the investor wants to guard against the market losing value shortly after making his investment.
If you believe in efficient market hypothesis start saving now, do it monthly through a systematic approach and every year when you get raises, apply those dollars towards your savings plan.
Those that start saving early can stop saving in the future and have more money that someone that starts late and saves more late. It is compounding interest / Time Value of Money that will pay off huge in the long run.
Be strong my MS crew and be dedicated to saving now… You will tank me in the future.
My $.02
JR

Sounds good to me, appreciate the insight. Everyone has a different financial IQ and tolerance for risk. No risk, no reward, especially in the stock market or in my case the commercial real estate investment market.

[Localizer]

Re: A very Scary Day today Stock Market

ahh yes I'm happy as a monkey in the marketplace. Beautiful gains today. Gonna sell soon.

[srbbnd]

Re: A very Scary Day today Stock Market

AMD stock for 2$ Got 50 shares for around 100 bucks before flotation costs. This is awesome IMO. Nvidia is going for around 7$. Fing amazing!!!