OT: US stock market set to crash Tuesday morning

[dekeuk]

 

In case you haven't seen today's financial news, the European markets crashed today with Paris down 7%, etc. It was the worst day in Europe since 9/11.

 

It gets worse.

 

According to this news story the DOW JONES futures are down 500 points, even though the US markets are closed for the holiday.

 

This means the US market will likely open down 500 points tomorrow morning.

 

It is time to take all of your money out of stocks and invest it in comics.

 

 

[SuperBird]

t is time to take all of your money out of stocks and invest it in comics.

 

 

if you are taking it out now, you are too late.

[Transplant]

Sell low. Buy high.

[dekeuk]

t is time to take all of your money out of stocks and invest it in comics.

 

 

if you are taking it out now, you are too late.

 

That's what they said when Nasdaq declined from 5000 to 4000 in year 2000. But the smart money got out at 4000 and laughed while the index went to 1600.

 

 

[MutantKeys]

Where's Gene

[JiveTurkeyMoFo]

Stock futures are one thing.....and not by themselves a valuable indicator of the final result of the trading day.

 

By tomorrow morning 9:29:59 am, Futures might be down 500 or up 200....a lot can happen between now and then, including, another bad day overseas, which will almost surely send the market south.

 

 

[Fan4Fan]

Sell low. Buy high.

 

You're copying my strategy...

[Mr. Zipper]

I wish I had more cash to buy, buy, buy now.

 

Stocks are the only things in the world that most people stop buying when they are "on sale."

[sterlingcomics]

I wish I had more cash to buy, buy, buy now.

 

Stocks are the only things in the world that most people stop buying when they are "on sale."

 

Exactly! I would go on a shopping spree and perhaps see a 20% return this year.

[lizards2]

In case you haven't seen today's financial news, the European markets crashed today with Paris down 7%, etc. It was the worst day in Europe since 9/11.

 

It gets worse.

 

According to this news story the DOW JONES futures are down 500 points, even though the US markets are closed for the holiday.

 

This means the US market will likely open down 500 points tomorrow morning.

 

It is time to take all of your money out of stocks and invest it in comics.

 

 

Sounds like time to buy into the stock market to me....., :think: as I took everything out last September....,

[dekeuk]

Stock futures are one thing.....and not by themselves a valuable indicator of the final result of the trading day.

 

By tomorrow morning 9:29:59 am, Futures might be down 500 or up 200....a lot can happen between now and then, including, another bad day overseas, which will almost surely send the market south.

 

 

Only an interest rate cut before the market opens will save it from gapping down

 

 

[Transplant]

Stock futures are one thing.....and not by themselves a valuable indicator of the final result of the trading day.

 

By tomorrow morning 9:29:59 am, Futures might be down 500 or up 200....a lot can happen between now and then, including, another bad day overseas, which will almost surely send the market south.

 

 

Only an interest rate cut before the market opens will save it from gapping down

 

Pardon me, but that's quite a statement. In fact, it's not true. There are thousands of things that could stop the market from opening down 500 points: foreign markets rebound, dollar unexpectedly strengthens, oil drops, gold drops, any of a hundred economic indicators could be rumored to be strong in their next report, etc. To say that only a rate cut can keep it from happening is quite frankly not entirely taking into account all of the variables.

[trmoore54]

I slid everything (all my retirement accounts) into 100% money-backed 4.5% Prime money-market fund a couple of weeks ago to ride out the volatility...and/or prep for the potential recession at hand. I would highly recommend similar strategies for not just the squeamish but the bold-at-heart as well...

 

IMHO we have definitely not hit bottom...it's still out there...

[Scott Summers]

Tomorrow morning is really going to ride on Bank of America who has their earnings release pre-market. They are in the center of this current panic/crisis state of affairs after having agreed to purchase Countrywide.

 

Also the Fed has to be very careful here. If they come in with this emergency cut say for 50 basis points, it could cause even more panic because that has not been their style at all through this whole development. Right now what is driving this sell off is uncertainty. We still do not know the true fall out of everything that is going on.

 

Just look at Merrill Lynch. They wrote off nearly 17 billion dollars or so in losses last week which essentially wiped out nearly 5 years of earnings. But exposure to sub-prime was actually a much much smaller % of that amount then you would think. In other words, there is something fundamentally wrong here with respect to how firms previously utilized risk parameters and also leverage. This is where the true damage and snowball effect happens.

 

Assuming the Dow opens up where futures say, it will have given back nearly 3000 points from the highs back in October/November - only a couple months ago. That is astounding.

[Mr. Zipper]

Stock futures are one thing.....and not by themselves a valuable indicator of the final result of the trading day.

 

By tomorrow morning 9:29:59 am, Futures might be down 500 or up 200....a lot can happen between now and then, including, another bad day overseas, which will almost surely send the market south.

 

 

Only an interest rate cut before the market opens will save it from gapping down

 

Pardon me, but that's quite a statement. In fact, it's not true. There are thousands of things that could stop the market from opening down 500 points: foreign markets rebound, dollar unexpectedly strengthens, oil drops, gold drops, any of a hundred economic indicators could be rumored to be strong in their next report, etc. To say that only a rate cut can keep it from happening is quite frankly not entirely taking into account all of the variables.

 

Or people could just come to their senses and realize that the economy is not that bad and the subprime issue is nothing more than a small road bump.

 

Seems like months and months of the media howling about gloom and doom and beating the subprime war drum have finally turned into self-fulfilling prophecy.

[DrWatson]

Stock futures are one thing.....and not by themselves a valuable indicator of the final result of the trading day.

 

By tomorrow morning 9:29:59 am, Futures might be down 500 or up 200....a lot can happen between now and then, including, another bad day overseas, which will almost surely send the market south.

 

 

Only an interest rate cut before the market opens will save it from gapping down

 

Pardon me, but that's quite a statement. In fact, it's not true. There are thousands of things that could stop the market from opening down 500 points: foreign markets rebound, dollar unexpectedly strengthens, oil drops, gold drops, any of a hundred economic indicators could be rumored to be strong in their next report, etc. To say that only a rate cut can keep it from happening is quite frankly not entirely taking into account all of the variables.

 

Or people could just come to their senses and realize that the economy is not that bad and the subprime issue is nothing more than a small road bump.

 

Seems like months and months of the media howling about gloom and doom and beating the subprime war drum have finally turned into self-fulfilling prophecy.

For once, we agree 100%.

[Mr. Zipper]

I slid everything (all my retirement accounts) into 100% money-backed 4.5% Prime money-market fund a couple of weeks ago to ride out the volatility...and/or prep for the potential recession at hand. I would highly recommend similar strategies for not just the squeamish but the bold-at-heart as well...

 

IMHO we have definitely not hit bottom...it's still out there...

 

I read a statistic somewhere to the effect of if you miss a very small percentage of days (the really down days), it has a tremendous exponential effect on the long term value of your portfolio. In other words, those that pulled out for short periods when the market was rough, had MUCH less than those that stuck to the plan, rode it out and stayed in the market the entire time.

 

Dollar cost averaging.

[Scott Summers]

Reality is what self-fulfilled the current state of affairs, when you have dozens of top financial companies writing off tens and tens of billions of dollars like candy. And actually for once, the media was ahead of the curve on this inevitable fallout. But the ironic part is and what most people do not realize because they do not dig into the numbers is that actual sub-prime defaults & exposure is causing much less of the damage. A huge portion of all these losses was due to very loose risk parameters, leverage, and the investment into other financial products.

 

No one knows how bad this could get or if in fact if it is going to turn out to be a blip on the radar. The uncertainty is what is causing the huge sell off, along with all of the earnings write off/losses being reported and realized.

 

Goldman Sachs for instance is forecasting a recession.

[Aman619]

its going (probably) to be a rough go for a while now....but, unless you can time the market, you have to ride it out. You can sell too soon, and buy in again too soon, and I read the same piece about missing out on the few key movement days affecting an entire year's returns. Ya gotta be in it to win it!

 

I keep hearing about the select few who always time the market and make money! But I just cant get my money into their hands somehow... nobody actually knows who they are.

 

So, the question I ask myself now is, where will the markets be in 10-15 years? If I believe the Dow will somehow bounce a few times and be over 20K, then sitting tight is the best decision. If I needed the cash in the next year, I might feel differenr and have tio gamble that things will be far worse by then and selling would have been the best move to cut further losses. Im not as happy as I was 6 months ago watchingv my accounts rise each week, but, the markets will come back. I just dont know when.

 

Hope this doesnt sound too Pollyannaish.

[Mr. Zipper]

Hope this doesnt sound too Pollyannaish.

 

Nope. Sounds wise to me.