This thread is needed; I hope someone can pull me out of this pit.
I thought rate hikes come on Wednesdays?
Stock brokers/investment managers like to claim that the market averages 7% per year, long term.
At 7% per year, it will double roughly every decade.
Given that the DJIA was around 1000 in 1980, at 7% per year, it should hit 16000 around 2020.
It could drop 8000 and be where it should be given the historical average.
Would have people jumping out of windows, but it would be where the long-term average would have it.
Then how’d he win?
During Obama we had a falsely inflated market driven by unchecked printing of money to hand out to Wall Street at zero interest so they could by buy bonds and turn a 4% profit in a year. But, people were hurting and business was down across the land.
8 years of Obama at 0% Fed Funds rate.
Trump gets in; suddenly we are going to 3%
This is orchestrated.
I’ve done this professionally for 26 yrs...
Dude, sit down, breathe....
I just tell my friends what did you think would happen when you turn the house over to Dems?
This is about what you would expect, if you understand how trading has been in the past ten years. The massive overvaluation we have had was dependent on rock-bottom interest rates.
If you don’t have rock-bottom interest rates, then stocks will have to stand on their own two feet. That is not going to happen at these valuations.
Over the past 10 years, capital has been grossly misallocated into financial-engineering trades that provide high returns at little risk. As these trades unwind, that will put selling pressure on stocks.
What happens when stocks start to go down? Hedge funds and institutional traders who bought on the dips and shorted the VIX will lose their shirt. When they need money to pay their creditors and meet margin calls, they will have to sell all their stocks, good and bad. That’s how the cleansing cycle of the market works. It is painful in the short term, unless you happen to have cash and can buy good companies at low prices.
I am usually the most optimistic one here. 500+ points per day off the market ad infinitum is scary.
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NO, what’s scary is the everything bubble continuing.. credit is going bad , RE is dropping .. What do you expect? we’re going into a recession or depression..
Good grief.
Why do people think the years of the Fed supporting Obama’s debt by keeping int rates low was free?
We’re paying for it now- as anyone could have seen we would.
Makes Treasuries a better investment vis a vis the market.
Yes, it’s scary but only if you sell into it. A ten percent drop in the Dow is considered a correction. Think of it as Wall Street having a sale.
I won’t tap my IRA for another year, by which time this current drop will have been erased. IOW, I sleep at night just fine.
Even if what you opine is true, what do you plan on doing? Sell short and make money.
You are reacting to a sharp market drop, and see conspiracy under every pillow.
I have no way of knowing what is going on, but selling short is not against the law.
What would Wall Street be like if there was no such thing as a hedge fund? Hedge Fund seems anti-American to me.
Bimgo they are losing money to hurt Trump.
You won’t get any help from me. There is just about nobody, including the lame stream media, that does not say this does not make sense. Just listening to ABC news and even they are saying it does not make sense in view of a good economy and no really bad things in view. There is the yield curve change .
All it takes is one person to yell fire in a crowded theatre to cause a panic. I think that is what is going on. Nothing else makes sense to me. I also think it is part of a setup to bury Trump.
I wish I could say that Wall Street had better be careful or they will run investors away for a long time but where woudl they go?
It is a mess. I’m clinging to the edge of the same pit you are in.
The more sorozNazi and nuts like Stryer lose, the better.
I too am not feeling very good at all about Trump pulling an out an ace. It is hard to go on much of an offense when you are alone and under siege. As I said in the previous post. They are out to bury Trump and if they destroy us at the same time... so what.
Interesting thing about being a billionaire, there is always enough to manage. They always have more than they can spend. A 50% loss for some is a disaster and for others it is a 50% loss and there will still be enough. Not so with most of us who are working all our lives to build just enough for retirement or have already done that.
Trump’s MO has always been to regroup and recover but eventually you run out of will, energy or time or all three. Eventually, you run out of enough tomorrows.
If it is being tanked to prepare for 2020, they are starting too soon. They should hold their water another 10 months. I personally think the downturn is part correction and part the chicken littles pulling out until the shutdown is resolved.