Dow

[PB234]

When one reads something like this, "

"If you have a 2% yield bond and inflation expectations over the next 10 years jump to some astronomical level (10% per year, say) then your NPV of a 2% yield bond will collapse. But, if you have a 5% yield bond, your NPV (which would be above par value (e.g. over $1,000 now) would go even higher. "

You just have to laugh. Brass, maybe you should seek some other adviser?

[Prospector Howard]

Hopefully this isn't the start of a huge crash, but who knows? To me the stock market is something that reminds me of nothing more than a ponzi scheme and I've stayed away from it my whole life. I happened to see this on Frontline on PBS recently and for anyone that doesn't understand much about how their 401k works, it sure is educational and well worth the hour of time to watch it. It also reinforced my negative feelings towards banks and Wall Street. Nothing but a bunch of money skimmers, as far as I'm concerned.

https://www.youtube.com/watch?v=Iad1TMXkV-c

[monge]

Looks to me like they a re up to there old tricks giving loan to inflated properties with buyers that can just about make payment if all go well and they get there projected raise at work. NY, and California are to blame see it around me people buying 700k old houses that sold for 60k in the 1970s.One good earth quake in California and the state will go back to desert!

[Charley]

You fellers can always stuff your investment money in your mattresses. You'll get a much better return that way. Or, invest 100% of your money in gold. How can you lose?

[Blammer]

time to buy

[dtknowles]

time to buy

Yeah, I think you could make money on the short term volatility play but that is trading not investing. I am not a trader, I think more long term, I have a lot of cash right now but if I bought on this correction/dip, I would be selling on the next peak as the two to three year outlook is a recession.

Tim

[shdwlkr]

the stock market has always been a gamble, my grandfather lost over a million in 1929, never did see it again.
The market is bloated has been for a while now, should be in the 7-9000 range
401k accounts are a gamble no matter how you look at it, if inflation doesn't mess with them one day the feds just might
The only silver lining is yes the market goes down but it has to this point always come back up too.
I feel sorry for the little guys that get hosed when the market dips but you know there are those who wait for this event and buy like there is no tomorrow
Soros who put the hurt on the coal industry can't buy enough at $1.25 a share, think he feels he is going to lose his investment?
The best on can do is make sure that you have a lot of different stocks, in different industries and hope for the best

[monge]

Remember your money went some were somebody has it and is sitting pretty!

[ol skool]

...If oil and gold and scrap, grains all stay too low we are looking for a lower then low market. If chart reset (or breaks) resistant low level it maybe 10,000 after election of 2016, like med 2017.

I fear you may be spot on here. Although global markets, and the reality of weak US economy may drive Wall Street to thoses lows sooner than '17. Market dumps faster than it climbs

[ol skool]

I cleaned my whiteboard at work and put up a timeline of all the recessions since the end of WWII and plotted the Dow highs and lows against that. I did that about two weeks ago. I had been working it out in my head but I wanted to show it to me coworkers. I had called my broker and told him to get my equities positions down to less than 30 percent of my holdings but I did not tell him to dump the stocks but to sell off stuff on good market days. We did get some stocks sold off before the bad days last week. I told my coworkers that we would likely see another recession in less than 3 years. I don't think this is the recession but the market was over bought. I was able to get out of the market before the last two recessions. Monday is going to be interesting.

Tim

You're keeping your sell orders? Next week will be interesting.

[monge]

Gov and state employees are not worried they are guarantied there pensions they just raise taxes to make up for poor performance in the market. what about the rest of us?

[sparky45]

Not only was the market oversold, the Chinese have slapped us up side the head with their currency manipulation(s).

[quilbilly]

The market has been kept so artificially high for so long by the Fed that it is now completely segregated from the real world economy. Sooner or later it will have to go below 11,000. China's economy is equally artificial and has to slow down to match the economies of their biggest customers. Obama's artificial economy virus is finally attacking the Chinese economy.

[BrassMagnet]

The market has been kept so artificially high for so long by the Fed that it is now completely segregated from the real world economy. Sooner or later it will have to go below 11,000.

Do you see a reason for the drop to stop?

[AK Caster]

I have to laugh at you guys who say sit tight and it will go back up, not to worry, etc. Maybe it will, maybe it wont.

The ONLY rule to follow in investing is to buy low and sell high. This means anyone who cashed out when the DOW was over 18,000 will reap more rewards if they reinvest at some point and then (IF) the market goes back up in the short or long term they sell. You don't have to time the lows or highs perfectly, just be in the ball park.

Money sitting in the bank now earning less than 1% is a heck of a lot better than watching your portfolio drop by 10% so far this year.

[dtknowles]

You're keeping your sell orders? Next week will be interesting.

No, they were not orders anyway, it was a plan, a plan to sell stocks on market up days. I have a financial advisor who makes the trades and I give him a lot of discretion and just tell him what I would like to do. If or when the market bounces back he will sell more. If we see a real bear market then we will hold what we have and when the market recovers and starts back up we will use the cash in the account to buy more stocks while the market is down.

Tim

Tim

[WILCO]

[Plate plinker]

Gov and state employees are not worried they are guarantied there pensions they just raise taxes to make up for poor performance in the market. what about the rest of us?

Fed employees no longer receive a government pension. They have 401K, old civil service contracts may be a different story. CS have a gravy contract.

[jcwit]

What Federal Employees actually get:

~http://everydaylife.globalpost.com/much-federal-employees-pension-benefits-36261.html

[AK Caster]

Fed employees no longer receive a government pension. They have 401K, old civil service contracts may be a different story. CS have a gravy contract.

Umm....that's entirely unaccurate about new employees