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 ...
I agree. That is why I think and hope a 50% correction is in order.
Plus, Europe is sucking major wind, and they now have negative int rates over there.
There is plenty of stuff to worry about in this market, but one must always remember that well more than half the time, worry is very bullish. This market has absorbed near-world ending crap and gone on to ignore it so many times, it’s silly, and while this may be the 39th time out of the prior 38 that it doesn’t, it is STILL *right* to bet that it will.
US markets are very attractive, still. They are not cheap, but they are not all that expensive, and there are very few alternatives. I can get as bearish as the next guy and I often do, but it is very seldom right to do so.
I don’t know .....ask Sky Pilot. He’s long on GLD and Euros right now. (snicker).
that would SUCK depending upon when those positions were initiated. I own modest amounts of gold and more, silver.
I think metals could go nowhere for years. I really do. There’s a possibility the EUR will climb from here, basically just the USD backing off a powerhouse run. I had a managed fund lose me a serious pile of dough going long the EUR over the last 2-3 months. I told the fund mgr he was a flaming moron. Well, not exactly. I asked if he was smoking crack. He didn’t take it well. Not well at all! Unfortunately, he did a lot of damage before I yanked my money.
The world will not always follow your script. Right now, we are following what in terms of logic for investing? Can you tell me?
The Stock Market is so over priced it is frightening.
Obama has ruined the economy, real manufacturing is in the toilet, unemployment numbers are a nightmarish levels, those on the government dole are at frightening levels, inflation rates are being lied to the American people, the Fed is keeping rates at near Zero so that the very few can profit, those who have committed crimes are winked at, but you got this all in check some how.
Amazing.
How are you so amazing?
Someone on the forum with integrity, congrats. You should talk to the guy who is selling snake oil.
The US Dollar is finished. The Russians and Chinese will see to that. Hello SDR.
That used to work. I don't think that will work in the future. We are in a whole new ball game.
FAZ ... ; - )
Never has, never will. I have never been 100% spot on. No one is perfect. If I had, my ROI would have been 30-50% rather than 15%.
Right now, we are following what in terms of logic for investing? Can you tell me?
There is never logic in investing. Just tried and true systems. (i.e. Buy low, sell high, Invest when people are scared and running, etc., etc. If you watched my comments, I am in agreement that we are in for a rough ride, even a 50% correction at some point. There are not that many of us who are even that bearish at this point. And as far as your currency concerns, even with our enormous deficits, including the ridiculous QE x1, x2, x3 the dollar will survive in some form or fashion. As long as your equity investment's are into tangible usable "stuff" you will survive even a hyper in/de flation scenario. Add a good dose of precious metals and real estate, you are pretty much set.
The Stock Market is so over priced it is frightening.
Fully agree, at it's IPO BABA exceeded WMT's capitalization for a little while. How crazy and stupid is that? As much as I like AAPL, they are even two bad products away from a 90% correction. One reason I did so well back in 2000, is that I avoided the dotcom stuff with a passion. When the bubble does bust, people in those sectors are going to take a 80-90% blood bath. Things can get rough, but anyone who says that a stock like JNJ is going to 0, just doesn't get it.
Obama has ruined the economy, real manufacturing is in the toilet, unemployment numbers are a nightmarish levels, those on the government dole are at frightening levels, inflation rates are being lied to the American people, the Fed is keeping rates at near Zero so that the very few can profit, those who have committed crimes are winked at, but you got this all in check some how.
You will not believe how much I am in agreement with all you said here. A lot of financial indicators are being fudged, which will all come out in the wash when we have another '08 -'11 type super recession. What scares me the very most, is that the election of '80 was a lot more similar to '12 that many realize (exception was Romney sure was no Reagan) In both elections the economy was in similarly in the toilet, but one big glaring difference. Back in 1980, you did not have a bunch of entitlement junkies sucking on the left hind teat of the government. Obama basically won, because those junkies were afraid to lose their free stuff.
How are you so amazing.
I am going to respond in good faith that this was not a sarcastic comment. As far as investing, you become methodical, disciplined, educated, and frugal. Keep the eye on goals and projections, and adjust where needed. In my case the goal was early retirement.
^GDAXI 11:45am EST 9,005.02 +9.69 +0.11% 8,975.06 9,140.29
^HSI 01:52am EST 23,100.52 -434.01 -1.84% 23,071.27 23,237.40 0
^N225 02:07am EST 15,254.06 -224.87 -1.45% 15,221.83 15,345.78
^SPX 04:30pm EST 1,928.21 -40.68 -2.07% 1,927.56 1,967.68 604,573,274
Huh???? I figured the foreign markets would be down a heck of a lot more than this after what happened on Wall Street yesterday
NIKKEI 15294.17 -184.76 -1.19%
SHANGHAI 2377.13 -12.24 -0.51%
HSI 23131.11 -403.42 -1.71%
ASX 200 5188.30 -108.38 -2.05%
KOSPI 1939.39 -25.86 -1.32%
STI 3228.50 -30.75 -0.94%
Come on Skypilot.... keep up!!!!
Yeah, but doesn't give you piece of mind that if there is a SHTF scenario?, that you are covered? I kind of view the precious metals part of the portfolio, like I view paying for insurance. A'int doing nothing for you until you need it.
Curency market plays have always scared the hell out of me, and I have avoided them. If I can't research it well enough, I don't touch it. Too many risks.
Probably.
Although a "MAJOR" correction (caps in original) is probably better known as a bear market...
“I just sent 5K to broker the other day. WTF... I am not winning the future!”
The market is a rigged casino. Has nothing to do with capital investment anymore. Read a book by Michael Lewis called “Flash Boys”, and then see if you have a taste for “investment” anymore.
Waiting for the big drop and for interest rates to move up - been out of anything that can drop with the market for a while (not earning much, but can’t hit me for a 3rd time as I head to retirement). Hoping for interest to go up so I can take advantage o=f some safe CDs or something to maintain the level of solvency needed for a nice retirement. Not interested/worried about “making a killing” - more interested in not going to the cleaners again.
We’re trafficking illegals here to prevent empty neighborhoods in the US. A consumer eceonomy is built on growth, and when that stops the economy stops.
Here in the northeast the party ended years ago; now it is just about managing the death spiral. Our local paper ran a story of a woman sandwiched between two abandoned homes (which had previously been unheard of in my town); they can’t even find the usual dozen illegals to house here anymore (the working ones follow money/jobs, and there is none left). What incentive would anyone have to buy a home in a dying area, increasingly populated by unassimilated minorities and the bureaucracy that administers them? The homeowners are immediately presented with huge bills for the both the bureaucracy AND the gibsmedats...
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