Posted on 05/05/2022 9:31:23 AM PDT by John W
Stocks plunged Thursday — with the Dow plunging more than 1,100 points — wiping out the gains from the previous session’s massive rally. In midday trading, the Dow Jones industrial average had slumped 3.3 percent. The S&P 500 index sank 165 points, or 3.8 percent, while the tech-heavy Nasdaq was the biggest loser, giving back 651 points, or 5 percent.
(Excerpt) Read more at washingtonpost.com ...
We are seeing a repeat of the mid to late 70’s.
It began with the Saudi oil embargo to punish Nixon for his re-supply of Israel after the ‘73 war.
The Socialists then got control over all three branches after Ford.
This is what they want to do again and this time, for the next 40 years.
Hopefully, this is all going to end after the ‘22 election.
How else do you deal with inflation ? The rally yesterday was in response to the hike not being 75. Today was the reassessment.
Tried to tell everyone when I posted the -1.4% GDP drop that the stock market would crater. Some said the losses were built in from start of year, but that’s just the start of it. I expect another 10-15% drop or more over the next 6 months.
Healthy markets don’t run up 3+% one day and down 5+% the next day on no new real news.
I was going to take profits in December after a 20+% up year but allowed groupthink to influence what I did. I sold about 1% instead of the 15-20% I was going to sell and am kicking myself ever since.
The fact we’re seeing so much selling at S&P ~4125 says to me that a lot of people must think we are headed a lot lower.
The only question becomes..how low, and how long will it take to recover? We could easily see a 5+ year “underwater” period just based on the math.
Oh, and I totally think the Dems are enjoying watching capitalism burn. So they can replace it with their “utopia” of Socialism.
I sadly suspect your expectations of a 10-15% further drop will prove to be exactly what happens.
I hope you are correct. I lived that time as maybe you did. It was terrible and went on for what seemed like forever. Years and years. The socialist grip was not as firm. Carter was almost benign by comparison.
Things happen so fast now.
I have low confidence in the ‘22 election. Republicrats are nothing.
We are in a horrible ride of liquidation.
I said not long ago to figure out which of your neighbors voted for plugs then go dump a present on their porch. That is the only relief and satisfaction you may get.
As for suffering, yeah, you can wish for worse for them but you’ll get it too.
True. The dip in the White House isn’t going anywhere any time soon.
Spot on
“It began with the Saudi oil embargo to punish Nixon for his re-supply of Israel after the ‘73 war.”
That was a lot of it. But not to be ignored is the plunge in value of the dollar when Nixon took us off the gold standard. an ounce. It was around 40 dollars an ounce when he did so. By the time of the 1973 oil shocks, it was up to 106 Dollars an ounce.
That meant the dollars we were paying the Saudis for oil lost over 60% of their buying power. It was a power play by the Saudis to ensure the dollars they were being paid were not going to be worthless in another year or two.
They needed security, we needed the dollar not to collapse without tying it to gold. And the petrodollar was born.
“As for suffering, yeah, you can wish for worse for them but you’ll get it too.”
I’ll feel the pain, the typical Biden voter will feel it much more. I’m retiring, I owe nothing on my house, nothing on my cars, no credit card debt. My pain will be in doing less than I intended on doing. I dare say the typical a-hole Biden voter has a little debt, particularly credit card debt. I hope they all choke economically while their dear leader tells them how great things are.
“Wait for the real crash (50%+) and then go deep into the market when everyone else has panicked.
You will know it is time to buy when everyone on FR is screaming “sell, sell, sell”....”
there’s some truth to that, though such deep discounts don’t happen very often ... still, when it DOES happen, it takes real guts and self-confidence to go against the herd ... what i like about those situations is that one can pick up high-quality babies that have been thrown out with the bath water, and that works best if one has been following a few high-quality babies for a long time, just waiting for such a panic to pounce ... those kinds of opportunities happen just a few times in ones lifetime ...
personally, i made a fortune doing that very thing during the last panic when SHELL was selling for 1/3 of what it had selling for for several years ...
Trump: “Biden will tank your 401ks” - For once I wish Trump were wrong, but is wasn’t.
Too soon, with rates poised to go up another 2bps, the market can come down another 3-4,000.
I’m down 11.5% for a year’s time.
I think the Dow is down roughly 10% Year to date. People who had a million in their 401k's lost about $100,000 so far this year.
Don’t catch a falling knife. Hard to predict, but I personally wouldn’t get into the market for a while.
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