Dow 9500 ... Where we go from here...

[BoberFett]

LOL, where are our local Wall Street cheerleaders in all of this?

 

[Thump553]

Originally posted by: ultimatebob
Hell... I can't decide if this is the greatest stock buying opportunity of all time, or if I should just dump everything I have left and buy hard assets like gold for the upcoming economic depression!

Oh well... if I was going to sell everything, I guess that I should have done it three weeks before my portfolio dropped 35%. Too late now, I guess! :|

I know exactly how you feel. I been going through my portfolio nearly every day deciding what to sell. Every company I have (but one ill-fated minor speculative fling) is rock solid, tons of booked business, extremely profitable. Buying them at these levels would seem like absolute robbery to me.

I must admit that I expected the markets to continue to settle down after yesterday's quasi-routine day. Now, I have no idea. There is very little more the government can do to build confidence. We are heading into uncharted territory.

The only reassuring thing I can think of is I was watching Fast Money a few days ago and they said if the market continues to drop at the rate it is in 19 trading days (probably 17 now) we will reach zero.

 

[HeXploiT]

The destruction of the Dollar.

 

[StageLeft]

Originally posted by: Perry404
The destruction of the Dollar.

Many are still talking about deflation being a problem, though, not just inflation.

 

[cliftonite]

Originally posted by: Skoorb

Originally posted by: ultimatebob
Hell... I can't decide if this is the greatest stock buying opportunity of all time, or if I should just dump everything I have left and buy hard assets like gold for the upcoming economic depression!

Oh well... if I was going to sell everything, I guess that I should have done it three weeks before my portfolio dropped 35%. Too late now, I guess! :|

It is too late. Unless it drops another 2000 points in which case you still have time. But nobody knows.

I have enough money to scrounge in the soup isle if a depression kicks in. Otherwise, I have to believe that this will bounce back as they always have for over 100 years or longer and if that's the case, I would be a maniac to cash out anymore at this point, because if I lose some of the upswing, it will have a catastrophic effect down the road. I sure am jealous of people who went all into bonds earlier this year, though.

I had done this in my 401k (up around .56 for the year) but did not have the discipline to do it with my savings

 

[Juddog]

So is now the time to buy or what?

 

[TheSlamma]

Did you guys freak this bad in July 2002? October 2002? March 2003? October 2004?

Everyone gonna freak out sell and lose their money..meanwhile the wealthy who can hold their chips will sit there and when it goes back up they bank and you lose.

 

[Dari]

Originally posted by: Juddog
So is now the time to buy or what?

Hell no. I got some money as a graduation present back in May and I'm glad I haven't put it to use yet.

 

[hydroponik]

Already down like 35% YTD, I'm guessing it was be pretty dumb to move some to cash at this point...

 

[Dissipate]

Originally posted by: TheSlamma
Did you guys freak this bad in July 2002? October 2002? March 2003? October 2004?

Everyone gonna freak out sell and lose their money..meanwhile the wealthy who can hold their chips will sit there and when it goes back up they bank and you lose.

A lot of the wealthy have margin calls.

 

[Cattlegod]

Originally posted by: hydroponik
Already down like 35% YTD, I'm guessing it was be pretty dumb to move some to cash at this point...

you said it right that it is a guess. in 2 weeks you could be saying just the opposite if we are down another 35%.

 

[RightIsWrong]

Originally posted by: Dissipate

Originally posted by: TheSlamma
Did you guys freak this bad in July 2002? October 2002? March 2003? October 2004?

Everyone gonna freak out sell and lose their money..meanwhile the wealthy who can hold their chips will sit there and when it goes back up they bank and you lose.

A lot of the wealthy have margin calls.

This.

Forced liquidation of entire portfolios to cover margin calls. You know gotta the cash to cover, they sell everything you do have and then bill you for the rest.

 

[HeXploiT]

Originally posted by: TheSlamma
Did you guys freak this bad in July 2002? October 2002? March 2003? October 2004?

Everyone gonna freak out sell and lose their money..meanwhile the wealthy who can hold their chips will sit there and when it goes back up they bank and you lose.

This is far worse than what happened in 2002. Check the percentages. At the time the dows high was 11500. We're now plummeting toward the low of 2002 from a high of 14,000+.

 

[Engineer]

Originally posted by: Perry404

Originally posted by: TheSlamma
Did you guys freak this bad in July 2002? October 2002? March 2003? October 2004?

Everyone gonna freak out sell and lose their money..meanwhile the wealthy who can hold their chips will sit there and when it goes back up they bank and you lose.

This is far worse than what happened in 2002. Check the percentages. At the time the dows high was 11500. We're now plummeting toward the low of 2002 from a high of 14,000+.

With economists now calling this the "beginning" of a multi-year recession.

 

[Viper GTS]

-40.3% before today.

Thank god for 100% company matching, I'm up until that hits -50%.

Viper GTS

 

[BoberFett]

Originally posted by: RightIsWrong

Originally posted by: Dissipate

Originally posted by: TheSlamma
Did you guys freak this bad in July 2002? October 2002? March 2003? October 2004?

Everyone gonna freak out sell and lose their money..meanwhile the wealthy who can hold their chips will sit there and when it goes back up they bank and you lose.

A lot of the wealthy have margin calls.

This.

Forced liquidation of entire portfolios to cover margin calls. You know gotta the cash to cover, they sell everything you do have and then bill you for the rest.

Just more of our debt based economy at work. The house of cards couldn't stand forever.

 

[SP33Demon]

Good thing I'm contributing 1% to my 401K.

 

[Dari]

Originally posted by: BoberFett

Originally posted by: RightIsWrong

Originally posted by: Dissipate

Originally posted by: TheSlamma
Did you guys freak this bad in July 2002? October 2002? March 2003? October 2004?

Everyone gonna freak out sell and lose their money..meanwhile the wealthy who can hold their chips will sit there and when it goes back up they bank and you lose.

A lot of the wealthy have margin calls.

This.

Forced liquidation of entire portfolios to cover margin calls. You know gotta the cash to cover, they sell everything you do have and then bill you for the rest.

Just more of our debt based economy at work. The house of cards couldn't stand forever.

Correct. I remember reading a couple of months ago in The Economist magazine where they said that as an economy advances, the individual needs to take up more debt. I was like 'WTF?'. It was a stupid argument but I think many have come to believe it.

The question is, what do we do now so that our economy isn't reliant entirely on debt and finance? What kind of new jobs can be created?

 

[ultimatebob]

Originally posted by: SP33Demon
Good thing I'm contributing 1% to my 401K.

Unless your company isn't matching, that idea sucks. If you're afraid of stocks, just put it in a freakin money market fund instead.... passing up on the company match is passing up on free money!

 

[Jaskalas]

14,000 to 8,500 is a 40% drop from the high. How low do we go?

 

[First]

Boy, a lot of panic and fear out there. I'm seeing a lot of bargain buys already with companies at P/E's of less than 8 and PEG's of 0.8-1.0. This is a great time to swoop up some tech and financials like BOA, currently trading at less than $20 with a trailing PE of 10.8 and forward of 6.3, a 5yr expected PEG of 1.3. HPQ is also trading at similarly great ratios. Just lots of great buys out there.

 

[Dissipate]

Originally posted by: Jaskalas
14,000 to 8,500 is a 40% drop from the high. How low do we go?

Ask the government and the Wall Street banksters who screwed up the whole financial system.

 

[Dissipate]

Originally posted by: Evan Lieb
Boy, a lot of panic and fear out there. I'm seeing a lot of bargain buys already with companies at P/E's of less than 8 and PEG's of 0.8-1.0. This is a great time to swoop up some tech and financials like BOA, currently trading at less than $20 with a trailing PE of 10.8 and forward of 6.3, a 5yr expected PEG of 1.3. HPQ is also trading at similarly great ratios. Just lots of great buys out there.

I heard 0 is a good buy.

 

[First]

Originally posted by: Dissipate

Originally posted by: Evan Lieb
Boy, a lot of panic and fear out there. I'm seeing a lot of bargain buys already with companies at P/E's of less than 8 and PEG's of 0.8-1.0. This is a great time to swoop up some tech and financials like BOA, currently trading at less than $20 with a trailing PE of 10.8 and forward of 6.3, a 5yr expected PEG of 1.3. HPQ is also trading at similarly great ratios. Just lots of great buys out there.

I heard 0 is a good buy.

Your YouTube education misled you.

 

[Michael]

I have been hoarding cash for the last several years and paid my mortgage off when i returned to the USA from Asia about 1.5 years ago. I'm not even close to sure we have reached the bottom as companies have not started blowing up when bonds come due and they cannot roll them over.

I have not stopped my automatic 401k deductions nor have i stopped my DRIP investments and automatic deductions. I will let those continue and keep the dollar cost averaging going. I'm in my early 40's, plenty of time until i retire.

I'll start putting some of my cash to work in equities eventually, but I'll start small at like 5% of my funds. Eventually this will pass.

Michael