I remember the ‘87 crash.
http://en.wikipedia.org/wiki/Black_Monday_(1987)
The market truly and completely collapsed.
500 point freefall, from 2,500. But then, it turned around and climbed right back.
What’s the market now? 12,500?
A corresponding drop now would be a one-day drop of over 2,000 points.
Ain’t gonna happen.
There’a a buying opportunity in here somewhere. Seems like everyone (pretty much literally everyone) is waiting to see what it’s going to be.
Anyone have any thoughts? Where’s the “bull market” in all this. There’s always a bull market somewhere, as Cramer says. Where or what, will it be?
The first ones to correctly identify the next big thing, are going to make a (lot) of money...
I remember the Y2K scare. Heh, there were some well-established FReepers with programming background who were telling other FReepers that because they hadn’t prepared for Y2K they’d be eating their pets during 2000.
I’m looking at fifteen years before getting the money, so I’m still putting it into small caps and emerging markets. I’m a long haul guy, so the downs aren’t bad for me now, just get more shares.
Sometime around 2010.
Why not? No one thought it could fall 500 points in 1987. Also, no one knew the "mystery man" would come in and buy cargo ship loads of spoo futures, which sent the market higher.
The first ones to correctly identify the next big thing, are going to make a (lot) of money...
Actually, the first ones to buy the sucker rallies are the first ones to go broke, in the absence of a government-sponsored "mystery man".
Financial infrastructure conditions now are too dire even for a super-mystery man to make much headway against.
I was working in downtown San Francisco then. I remember that day very well.
I still have the Wall St Journal articles that tell how the whole financial system was very close to melting down that day.