Posted on 08/26/2015 1:29:03 PM PDT by blam
We have been warned.
The volatility index would be something to see. Look at futures. It’s quite a spectacle.
http://www.bloomberg.com/markets/stocks/futures
The following might also be interesting (a possible look through the end of the year).
Stock Market Sound the Alarm
Stock-Markets / Stock Markets 2015 Aug 25, 2015 - 11:48 AM GMT
By: Bob_Loukas
http://www.marketoracle.co.uk/Article51985.html
Some say this is in reaction to the Chinese government stepping in to save the Shanghai Composite. I think they just announced they will spend/invest $22 billion to prop up the market.
Just delaying the inevitable collapse.
Be aggressive when young and slide the portfolio into more conservative investments as you get closer to retirement. I laugh at idiots that are over 50 screaming about how the up and down market is killing thier investments.
At a point it’s more important to keep what you have instead of trying to earn.
Until it goes down 300%.
That's about the size of it. Give me $4.5 Trillion and I can make anything look good as well, for awhile. I think judgment is coming, and a bunch of money gamblers who shout unicorns and happy talk to keep computer screens looking good with up arrows for an afternoon, despite economic realty, won't change that.
On a points basis, this was third-largest daily gain for the Dow ever, while the S&P 500 had its best day since November 2011.OTOH, bank accounts yield a whopping fraction of a percent.
Soros manages this midair course correction.
Stocks go nuts like guns shoot people.
Pigeons went nuts, trying desperately to find “bargains.”
I bought some silver a few years back. If I sold it now I’d take a bath. But I don’t have to sell it. So, as long as I don’t sell it, I haven’t lost a dime.
Yeah, but the Bilderbergers have been propping the company up.
/sarc
Good I had a handful to get rid of and they should have sold at todays closing price
IF they had been using basic derivatives (puts and calls) in the way they were MEANT TO BE USED, they would have covered HOWEVER, that is likely not the case.
At university, my Derivatives Instructor told us a story about a former Enron employee he knew. This man had $1.4 million in Enron shares in his pension, ‘insured’ with puts to cover losses. His boss found out and called him on the carpet stating that ‘having puts to back up the shares shows a lack of confidence in the company. Either sell those puts or else you,’re fired.’. The man kept his puts and was fired. A little while later, Enron collapsed. He walked away with $1.3 million and his boss, who had ‘faith’ in Enron, lost his job, his house and his wife. Derivatives, as designed, WORK!
Then you have the ‘Trader’ who thinks he understands the market better than the market! Guys like Nick Leeson at Baring’s Bank...THEY are trouble! Black-Scholes is NOT a perfect predictor of options pricing.
And if you are not in it anymore and are just waiting for it to drop 300%? That's how the game is played.
Thanks for the advice. Older FReepers know you NEVER lose in the market until you sell, so hang in there and NEVER sell. Good advice for young speculative millennial investors with little to lose. And everyone knows you will always win in the long term, IF you live long enough. Time is on your side if you are younger.
But for the rest of us mortals, especially old retired FReepers, we live in the shorter-term. Some have already diversified our portfolios and now own a few tangible shares of StarKist (and maybe some Jack Daniels, a few guns, and some ammo) which we have safely tucked in our basements for a rainy day. We have a rainy day plan (or think we do). So please don’t laugh or belittle us.
On that cold rainy day while others will be waiting for the Titanic to arrive in New York City, (hopefully) we’ll be hunkered down leisurely toasting each other with our bottle of sunshine and enjoying the tuna fish we have set aside for such times.
All to say, if everything one owns or cannot afford to lose is invested in the market, it might be a good time to diversify into tuna fish or something tangible in case the market sinks like the Titanic. There are icebergs up ahead and a storm is brewing. At some point it could rain, so have a plan and something set aside for a rainy day.
Keep your head and never panic sell. Let those around you panic first, then it will be alright if you need to panic. Unfortunately for you it might be too late by then. It doesn’t take an Einstein to know that time (and money) is relative so give it some thought as to what you would do before the panic starts.
So instead we have people hunkered down in their study/living room/basement with stocks and bank accounts they think is safe.
Soros up his old tricks again and I am sure some of those elected officials who have inside info have made some gains.
Shouldn’t that headline be “Nuts go Stocks”? :)
“Until it goes down 300%.”
It is mathematically impossible for “it”
to go down more than 100%. 100% would
make the market go to zero, which is
technically possible, but it’s still
not 300%
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