Stocks Set to Rebound From Huge Drop

AP ^ | 01/18/08 | Madlen Read

[TigerLikesRooster]

500 points rebound? Cheerleaders would come out again in numbers.

[Thermalseeker]

Cheerleaders would come out again in numbers.

Yeah, the doom and gloomers around here have been screaming SELL SELL SELL for the past week or so. Meanwhile, I've been saying the recent sell off represents a great buying opportunity.

Bear markets aren't for the faint of heart......

[RSmithOpt]

Computer generated sell - offs or the blind not knowing the pre-08 election 'recession' was going to come, or that the mortgage / banking / inflation mess isn't going to affect the economy?

Those with the money, willing to do their homework, can buy low now and wait for the upswing in 18-24 months for a tidy 25-30% average return barring catastrophic natural disaster, war, or domestic terrorist attack.

[Dilbert56]

“not seen since last March”. So 10 months’ worth of gains was wiped out. So the stock market is back where it was 10 months ago. From the reporting you’d think it was the 1930’s again. Every news program leads with stories about our “recession”.

[jiggyboy]

Yeah, the doom and gloomers around here have been screaming SELL SELL SELL for the past week or so.

Point of order, Mr. Chairman: They were correct.

Here's one for your scrapbook: It looks like DJII will open +100 or so. If it gives that up any time before noon, I'll make a $200 bet with the NYSE that it drops another 10% within four weeks.

[2banana]

Just wait until the bond insurers lose their AAA rating (coming any day now).

That ALONE will cause a 500 point drop.

[TigerLikesRooster]

Yep, there are serious problems which have not seen the light of the day(I mean, not well-publicized.)

[mad_as_he$$]

I call this a staggering bull market. it hasn’t died yet but it is mortally wounded. Very dangerous place to be.

[ken21]

old women that i know, and many on this forum, always

appreciate a bad day on wall street!

it confirms their daily mental state of fear and dread and loathing.

[aimhigh]

We’ve seen a thousand point drop since January 1, and I expect another thousand over the next month. I’ll be buying, but not just yet.

[TigerLikesRooster]

Perhaps so. However, their view could be closer to the reality.

[Thermalseeker]

Point of order, Mr. Chairman: They were correct.

For certain sectors, yes. Overall, my portfolio, which I personally manage, is still up over 30% for the past calendar year. There are a LOT of stocks that will weather this storm just fine, thank you.

Selling just for the sake of selling or because the DJIA drops a few percentage points is foolish. All you are doing is churning and creating commissions for brokers.....and further destabilizing the markets......

[Thermalseeker]

Those with the money, willing to do their homework, can buy low now and wait for the upswing in 18-24 months for a tidy 25-30% average return barring catastrophic natural disaster, war, or domestic terrorist attack.

There will be money to be made if those things happen, too......

[SoFloFreeper]

No way, stocks will never come back. We are in permanent recession and we need tax cuts to save us. < off Democrat candidate mode>

[SoFloFreeper]

Sorry, I meant "tax increases" in the Democrat mode.

Irrational exuberance on my part.

[Thermalseeker]

I’ll be buying, but not just yet.

Yep. Cash in place and I'm patiently waiting. This being an election year, look for the politico's to meddle with the markets quite a bit between now and the first Tuesday in November. Personally, I'd love to see Capital Gains taxes reduced to about 7%, or better yet eliminated entirely (hey, I can dream, too, okay?) Cutting or eliminating corporate taxes to level the playing field would help a lot, too, by bringing back some of that $14 trillion or so that has been driven off shore thanks to our regressive, confiscatory taxes.

If we could get the Capital Gains tax out of the way and bring corporate taxes in line so that we are the most favorable industrialized nation in which to do business, we would see a bull market unlike anything this or any other nation has ever seen......the only thing standing in the way is GUBMINT!

[Tijeras_Slim]

From the reporting you’d think it was the 1930’s again.

I hope the soup kitchen has Wi-Fi.

[Thermalseeker]

I hope the soup kitchen has Wi-Fi.

SNORT!

[TigerLikesRooster]

In the end, neither tax cut nor tax increase will do much. You can only buy time. Extended market upswing in last several years was possible in return for creating serious vulnerability in financial system. The longer we drag this along, the bigger the eventual downfall and its fallout.

The recent events including subprime problem is the sign that we are running out of the cards to play. More money into the system, dollar value drops, making dollar-based finacial assets lose value. No injection of money will let the value drop on its own due to lack of liquidity. Either way, dollar-based assets lose its value.

For several years, they managed to pump in liquidity without the dollar value falling. I think that is no longer possible.

[MNJohnnie]

We are in permanent recession and we need tax cuts TAX HIKES to save us. < off Democrat candidate mode>

There, fixed it for you. Democrats never believe the time is right for a tax cut. What they wrongly call tax cuts, is actually a tax credit. Well Democrats and John McCain believe in tax credits.

A "Tax Credit" means that the Govt takes your money, then if you fit one of their special victim class status (i.e. Left handed gay union truck driver with a disabled parent making less then $30,000 a year) you fill out a bunch of forms and they consider whether or not to give you any of your money back