Posted on 10/09/2014 5:19:12 PM PDT by SkyPilot
U.S. stocks sank on Thursday, erasing all and more of the previous day's rally, as investors bypassed U.S. corporate earnings and economic reports to focus on global concerns, including Europe's softening economy.
"We've added global growth concerns on top of other headline risks, (such as) air strikes, Ebola," said Sean McCarthy, regional chief investment officer for Wells Fargo Private Bank.
Ahead of Wall Street's start, data showed a 5.8 percent drop in German exports in August, adding to downbeat numbers that had German industrial orders and output falling as well.
"Europe's growth is weak, and close to going into recessionary like conditions; everyone is waiting for the bazooka to be fired," said Mark Luschini, chief investment strategist at Janney Montgomery Scott.
Stocks furthered their losses after European Central Bank President Mario Draghi said there are indications that the euro zone's economic growth is slowing and that central bankers should strive to boost inflation.
"To some extent we've lost the optimism that drove the markets higher over the course of the year, whether it's worry about the impact of people dying of the latest contagion, whether worry about what will happen when the Fed is no longer pumping money into the economy, or Europe and the slowing there," said Bruce McCain, chief investment strategist at Key Private Bank.
After rising to 19.38, its highest level since Feb. 6, the CBOE Volatility Index, a measure of investor uncertainty, rose 24 percent to 18.76. The Russell 2000 Index of small-cap companies fell 2.7 percent.
(Excerpt) Read more at cnbc.com ...
Now we will see the true character of many FReepers and Consevatives.
Soetoro says he wants the election to be about the economy and not him. ROTFL!!!
Confident of TEOTWAWKI?
UVXY
Buy stocks when others are selling. No one knows how low the stock market may go, but 7-10 years from now the stock market and good quality stocks like Colgate, Church & Dwight, Conoco, Discover, Gilead, General Mills, Hasbro, Coke, Pepsi, Master Card, Visa, Altria, Toronto Dominion, TJ Maxx, and Walgreen’s will be higher.
Gilead is an excellent Bio-Pharma Company that has a cure for HEP-C. Hopefully tomorrow they will receive European approval for their combo drug for HEP-C. May be a little late to buy them here. Try to wait for a pull-back if one comes.
I agree; But probably not in the way you might imagine. IMO it will be far LESS of a correction than routine. Routine = 10%. That would be 200 SP points, perhaps 1600-2000 DJIA points. I myself am generally fairly bearish and I am no polyanna at all. I don’t think we’ll experience a 10% correction.
Most annoying statement in the English language: “We’ll see”.
Normally, I would predict another sell off day tomorrow as people won’t want to be left holding anything over the weekend in case something happens. But given the roller coaster the past few days it is anyone’s guess.
Don't forget about Proctor & Gamble and Clorox. Especially Clorox, we'll need the bleach to combat the infectious diseases. It is also a diversified business.
I tend to agree with you, for one reason. Bonds are paying next to nothing, so there is no attractive alternative to stocks.
In previous crashes, bonds were paying north of 6%. CD's were paying around 5%. But today it's either stocks, 1% CD's, or 2% bonds. With inflation at 2%, I don't think there'll be any rush to CD's or bonds.
I took my money out.
My prediction as well. Another down day tomorrow leading into the weekend. Asian markets down this evening.
Prolly an upside bounce Monday or Tuesday.
Mix of bonds doing well over the last couple of weeks.
Aren't they just *printing* now?
It boils down to this. Our dollar is worth 10 cents in 1980 money. It’s what comes from having a series of liberal arts majors controlling our economy.
I felt like a prophet the past couple of days, after posting, before the downturn started, comments in the WSJ blog referring to the massive and undeserved boost to equities that the Federal Reserve has created. The following two days saw the big market declines.
No, I am not thinking a bunch of market movers were following me. It just made me laugh to observe the big declines as they followed after I had made the comments in WSJ.
I think the equities market is full of empty air, a bubble waiting to burst. Lies have supported it so far - a “robust” economy, “dropping” unemployment rates, increased productivity - all lies.
Not to mention the highly “effective” quantitative easing that is just like a cocaine party before the crash.
YUP!...i shouldn't tell ya this but in another 35 years it will be worth 1 cent...
Understand how to invest now?...
Kid, I have been investing for 35 years have done well enough to laugh at Chicken Littles like yourself. I have had an average ROI since of 14.65 annually since 1979, and only one slight down year (2008). Can you make those kind of claims? Educate yourself, and improve your level of understanding of the financial world before making ridiculous statements.
Can things get tough?, sure..... that is why I will venture even a bearish 50% correction. Still, diversification (including positions in gold and real estate) is a hedge against significant bear markets.
By the way making ridiculous claims like buying Euros , while the dollar is finished does not help your credibility. I generally choose to discuss financial "things" at FR who at least know a little bit about what they are talking about.
That is why I left the etc., etc. The past 2 or 3 years have been a nightmare in that there has pretty much been nothing to invest in. A good shock and correction will take care of that.
Got to agree. PG and CLX are good plays right now.
i.e correction 14.65%
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