Posted on 08/20/2015 6:56:30 AM PDT by Farmer Dean
Worldwide markets are taking a beating,where is this headed?
Where indeed?
QE infinity of course. Cans are made for kicking - down the road that is.
China is a mess,Europe is fragile,and the US markets are propped up.There’s a big brick wall across the road.
NIKKEI Nikkei 225 Index 20033.52
-189.11 -0.94%
HSI Hang Seng Index 22757.47
-410.38 -1.77%
ASX 200 S&P/ASX 200 5288.58
-91.61 -1.70%
SHANGHAI Shanghai Composite Index 3665.58
-128.53 -3.39%
KOSPI KOSPI Index 1914.55
-24.83 -1.28%
CNBC 100 CNBC 100 ASIA IDX 6737.92
-106.29 -1.55%
...I’m thinking this wavering will continue until a black swan in late Sept. or Oct. bombs the market and investors finally flee. My money’s been out since Jan. and I’m expecting a drop to around 11,000 or so in the DOW and 14-15,000 in the Nikkei.
I was noticing yesterday that the dow is down over 1000 from its high.
Maybe. But there’s still $12 trillion in investment capital sitting on the sidelines. I doubt anyone’s going to let it go that far before snapping up deals.
For your consideration...
Dow’s down over 200 this morning,DAX is off 128.Seems to be down momentum worldwide.
Plus the Chinese seem to be losing control of their markets.
I don’t know either. I’m thinking the problem is going to be perception rather than reality. Unlike 2007, people can sense something’s wrong with the market and they’re waiting for a shoe to drop because they’re scared.
I sure hope it doesn’t drop that far, because the banks are going to be shooting for an IRA/401k bail-out through a stupid government-endorse takeover of deposits, and then it will REALLY be war.
I just closed out my 401k for that very reason.Put the money where they can’t find it.
To a 2016 Republican (or Tea Party candidate) Landslide.
Then we can quit worrying that the market is overpriced.
The PE ratio of the DJIA is at 16.60X today. The average PE ratio for the Dow Industrials since 1929 is 15+-...and that includes the great depression.
I guess a reverse problem is what we saw with Greece, where a small movement toward a “bailout” produced 200 point euphoria on the Dow. Pretty much meaningless overall.
Yes delusion abounds! Today: Jobless claims edge up; labor market still improving
Absolutely. American corporations are sitting on a massive pile of cash. Apple alone has $203 billion on hand as of last month.
And most retail investors have not gotten back into the market since the crash of 2008.
On top of that the housing market in the U.S. is finally beginning to tick up. See the following:
Housing starts rose 0.2 percent in July to a seasonally adjusted annual rate of 1.21 million homes, the Commerce Department said on Tuesday. Construction of single-family houses accounted for all of the gains, shooting up 12.8 percent last month to the highest rate since December 2007.Source: NYTimes yesterday.
Unless you are retired I think that was a foolish thing to do.
Fear mongering costs a lot of people money.
The only time it’s a bad time to invest in the stock market (mutual funds) is if you don’t plan to keep it there for 10 years.
In 2007, the market was outstripping economic fundamentals of the country. I got out of the market before the crash.
I retired 2 years ago.I still work the farm but I quit the day job.So now I only work about 50 hours a week.
I hope you are at retirement age, otherwise you just wasted money on that move.
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