Dow Below 10,000

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Pliablemoose

Lifer
Oct 11, 1999
25,195
0
56
Originally posted by: PC Surgeon
SHIFT! DEFLECT! BOUNCE! DENY!

You're like a really educated poster, aren't you?

Perhaps the most educated person on the internets?

;)


I like the economic threads so much more than politics.
rose.gif
 

LegendKiller

Lifer
Mar 5, 2001
18,256
68
86
Originally posted by: dmcowen674
Originally posted by: ElFenix
Originally posted by: LegendKiller
Originally posted by: Special K
Originally posted by: LegendKiller

We are facing massive deflation from housing, energy, and food, at this point.

Has anyone actually seen food prices drop this year? All I have seen so far are increasing prices and/or smaller packaging.

I have seen milk prices drop.

dave says no

I truly believe LK is on drugs

Nothing has dropped here except gas in New jersey has come down to around $3 a gallon.

It's still over $3.50 on the New York side.

Milk still the same around $3.69 so gas just came back down below milk.

Cereal prices are insane as well as most prices in Stop & Shop and the rest of the Supermarkets around here.

LK is lying, period

I don't live in NYC. Cereal "insane", waffles.
 

LegendKiller

Lifer
Mar 5, 2001
18,256
68
86
Originally posted by: Pliablemoose
LK, the only thing I can find about investing during a deflationary period suggests t bills. And they suggest everything (equities commodities) takes a massive dump.

opinions?

That's about the only thing that is good in a deflationary environment. All other credit is much worse, considering the debt you fund is at a more expensive amount while wages are depressed. That's the huge reason why deflationary environments are avoided, they can utterly trash economies.
 

SP33Demon

Lifer
Jun 22, 2001
27,928
143
106
Originally posted by: Evan Lieb
FYI Engineer, according to BLS:

The food index advanced 0.6 percent in August after rising 0.9 percent in July. The index for food at home rose 0.8 percent in August after a 1.2 percent increase in July and is up 7.5 percent over the past year.

This jives with the food prices I've seen recently, which have stayed the same or gone up slightly in the last couple months.
Yep, look at a bag of chips like Doritos that went up to 3.79 from 3.29 this summer. Frito Lay raised all of their prices this year due to corn + fuel concerns.
 
D

Deleted member 4644

Originally posted by: Naustica
So did anyone in this thread buy any equities today?

$600 of DIA.

Going in for another $500 or so tomorrow.

 

ponyo

Lifer
Feb 14, 2002
19,688
2,811
126
Originally posted by: Deleted member 4644
Originally posted by: Naustica
So did anyone in this thread buy any equities today?

$600 of DIA.

Going in for another $500 or so tomorrow.

:laugh: Didn't you say you were rich? :laugh:
 

First

Lifer
Jun 3, 2002
10,518
271
136
Originally posted by: SP33Demon
Originally posted by: Evan Lieb
FYI Engineer, according to BLS:

The food index advanced 0.6 percent in August after rising 0.9 percent in July. The index for food at home rose 0.8 percent in August after a 1.2 percent increase in July and is up 7.5 percent over the past year.

This jives with the food prices I've seen recently, which have stayed the same or gone up slightly in the last couple months.
Yep, look at a bag of chips like Doritos that went up to 3.79 from 3.29 this summer. Frito Lay raised all of their prices this year due to corn + fuel concerns.

Who the hell sells Doritos for $3.79?
 

miketheidiot

Lifer
Sep 3, 2004
11,060
1
0
Originally posted by: nixium
Originally posted by: Skoorb
Originally posted by: Pliablemoose
Originally posted by: Skoorb

More likely stagflation, or deflation.
I don't see that. The fed is printing money, now mass. is asking for a loan.

2 reasons, IF oil continues to decline because of reduced global demand, it will have the effect of reducing the bottom line of all goods & services, and the rest of the world is actually in worse shape than we are because despite threatened flights to the Euro, etc, when we catch a cold, they catch pneumonia, further depressing prices.

The deleveraging going on right now is also deflationary.

I was actually hoping that we'd stay down at the close, as it stands, we haven't hit capitulation yet, and with the action of the market today, I don't know if I want to see capitulation.
But a reduction in bottom line is a good in this context as a decrease in oil has an economically stimulating factor. I can definitely see how deleveraging would be deflationary. When money is harder to get, things will sell for less of it.

Which is worse - inflation or deflation?

deflation no contest.
 

miketheidiot

Lifer
Sep 3, 2004
11,060
1
0
Originally posted by: Skoorb
Originally posted by: Thump553
I'd be interested to hear the talking heads explanation of today's markets. Basically all the world markets were down, and feeding off each others negative vibes. But for some reason the US markets pulled a very strong rally and climbed solidly for the last half hour or so.
Because people started distributing x to the traders after lunch. There is no fundamental reason why the DOW would swing that much except that people are hysterical and once they saw a small upswing for whatever reason, they wanted to be part of it, so it accelerated, and before we know it an 800 drop was 370.

it actually did that two or three times that i saw, it would drop down to 600 or so, then bounce back up several hundred points in the next few minutes.
 

SP33Demon

Lifer
Jun 22, 2001
27,928
143
106
Originally posted by: Evan Lieb
Originally posted by: SP33Demon
Originally posted by: Evan Lieb
FYI Engineer, according to BLS:

The food index advanced 0.6 percent in August after rising 0.9 percent in July. The index for food at home rose 0.8 percent in August after a 1.2 percent increase in July and is up 7.5 percent over the past year.

This jives with the food prices I've seen recently, which have stayed the same or gone up slightly in the last couple months.
Yep, look at a bag of chips like Doritos that went up to 3.79 from 3.29 this summer. Frito Lay raised all of their prices this year due to corn + fuel concerns.

Who the hell sells Doritos for $3.79?
Go to your supermarket or gas station. The price is now $3.79, it's BS. I'm looking at a 10.5 oz bag of Sunchips that are 3.79 sitting in front of me.

 

NoStateofMind

Diamond Member
Oct 14, 2005
9,711
6
76
Originally posted by: SP33Demon
Originally posted by: Evan Lieb
Originally posted by: SP33Demon
Originally posted by: Evan Lieb
FYI Engineer, according to BLS:

The food index advanced 0.6 percent in August after rising 0.9 percent in July. The index for food at home rose 0.8 percent in August after a 1.2 percent increase in July and is up 7.5 percent over the past year.

This jives with the food prices I've seen recently, which have stayed the same or gone up slightly in the last couple months.
Yep, look at a bag of chips like Doritos that went up to 3.79 from 3.29 this summer. Frito Lay raised all of their prices this year due to corn + fuel concerns.

Who the hell sells Doritos for $3.79?
Go to your supermarket or gas station. The price is now $3.79, it's BS. I'm looking at a 10.5 oz bag of Sunchips that are 3.79 sitting in front of me.

BS! No there isn't inflation! OMGZ! Prices are going down duh!
 

LegendKiller

Lifer
Mar 5, 2001
18,256
68
86
Originally posted by: PC Surgeon
Originally posted by: SP33Demon
Originally posted by: Evan Lieb
Originally posted by: SP33Demon
Originally posted by: Evan Lieb
FYI Engineer, according to BLS:

The food index advanced 0.6 percent in August after rising 0.9 percent in July. The index for food at home rose 0.8 percent in August after a 1.2 percent increase in July and is up 7.5 percent over the past year.

This jives with the food prices I've seen recently, which have stayed the same or gone up slightly in the last couple months.
Yep, look at a bag of chips like Doritos that went up to 3.79 from 3.29 this summer. Frito Lay raised all of their prices this year due to corn + fuel concerns.

Who the hell sells Doritos for $3.79?
Go to your supermarket or gas station. The price is now $3.79, it's BS. I'm looking at a 10.5 oz bag of Sunchips that are 3.79 sitting in front of me.

BS! No there isn't inflation! OMGZ! Prices are going down duh!

Troll much?
 
Dec 30, 2004
12,553
2
76
Originally posted by: Pliablemoose
Originally posted by: PC Surgeon
SHIFT! DEFLECT! BOUNCE! DENY!

You're like a really educated poster, aren't you?

Perhaps the most educated person on the internets?

;)


I like the economic threads so much more than politics.
rose.gif

no dave is the most educated person on the internets.
 

LegendKiller

Lifer
Mar 5, 2001
18,256
68
86
Originally posted by: PC Surgeon
Originally posted by: soccerballtux
Originally posted by: PC Surgeon
Originally posted by: LegendKiller

Troll much?

nope

nobody is arguing that there currently isn't inflation. Yet you are trying to start a fight or something where there is no contest. Hence it is trolling.

Wrong.

It's quite correct. All you do is enter and exit threads, posting useless trolls to incite reaction. That's trolling and you do quite a bit of it.
 

SP33Demon

Lifer
Jun 22, 2001
27,928
143
106
9922, markets cheering Fed buying commercial paper. 7000 is still around the corner, right? lol
 

mshan

Diamond Member
Nov 16, 2004
7,868
0
71
"7000 is still around the corner, right?"
I believe people might be calling for a possible intermediate term bottom in the next couple of days, but not necessarily "the" bottom.

The definitive bottom probably won't manifest itself until there is more clarification of exactly how deep this recession is going to be, and whether it lasts for 6 months, 2 years, or 5 years.

John Bogle was interviewed on Morningstar last week and it seemed like he might be suggesting 8 - 10% stock markets returns going forward from last week's levels (7% earnings growth and 2.5% dividend yield). When market was priced much higher a couple years ago, I remember Warren Buffett suggesting a sustained period of stock market underperformance (say 5% per year?) because P/E multiplies were so high then.

 

K1052

Elite Member
Aug 21, 2003
52,920
46,876
136
Originally posted by: mshan
I believe people might be calling for an intermediate term bottom, not necessarily "the" bottom.

The definitive bottom probably won't manifest itself until there is more clarification of exactly how deep this recession is going to be, and whether it lasts 6 months, 2 years, or 5 years.

Could you be a little more vague?

I mean really...its ok to say you don't actually know (which nobody does).

It's too early to make solid predictions on the effects of the bailout or what is actually going to happen. Give it a few weeks and watch the debt markets. People need to stop clinging to the DOW as the end all indicator of economic health.
 

NoStateofMind

Diamond Member
Oct 14, 2005
9,711
6
76
Originally posted by: LegendKiller
Originally posted by: PC Surgeon
Originally posted by: soccerballtux
Originally posted by: PC Surgeon
Originally posted by: LegendKiller

Troll much?

nope

nobody is arguing that there currently isn't inflation. Yet you are trying to start a fight or something where there is no contest. Hence it is trolling.

Wrong.

It's quite correct. All you do is enter and exit threads, posting useless trolls to incite reaction. That's trolling and you do quite a bit of it.

Then you should learn what a "troll" is cause obviously you DO NOT know.

http://en.wikipedia.org/wiki/Internet_troll

An Internet troll, or simply troll in Internet slang, is someone who posts controversial and irrelevant or off-topic messages in an online community, such as an online discussion forum or chat room, with the intention of provoking other users into an emotional response[1] or to generally disrupt normal on-topic discussion.[2]

Go study your terms before blasting out BS names.
 

TridenT

Lifer
Sep 4, 2006
16,800
45
91
LOL, Dow down almost 200 points already today!!! Rofl Yeah, stocks doin' great!