Dow Below 10,000

[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.

 

[LegendKiller]

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]

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]

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.

 

[ponyo]

So did anyone in this thread buy any equities today?

 

[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]

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]

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]

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]

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]

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]

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]

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?

 

[NoStateofMind]

Originally posted by: LegendKiller

Troll much?

nope

 

[soccerballtux]

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.

no dave is the most educated person on the internets.

 

[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.

 

[NoStateofMind]

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.

 

[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.

 

[mshan]

"A Vortex of Selling?" -> http://www.cnbc.com/id/15840232?video=880765678&play=1 (Much of recent downturn due to massive hedge fund shorting of SP Futures?)

"Hedge Fund Pain" -> http://www.cnbc.com/id/15840232?video=880803509&play=1

 

[StageLeft]

Originally posted by: mshan
"A Vortex of Selling?"

Much of recent downturn due to massive hedge fund shorting of SP Futures?: http://www.cnbc.com/id/15840232?video=880765678&play=1

sounds like one of ben stein's points today on finance.yahoo.com with his "12 ways to ruin the economy".

 

[SP33Demon]

9922, markets cheering Fed buying commercial paper. 7000 is still around the corner, right? lol

 

[mshan]

"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]

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]

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]

LOL, Dow down almost 200 points already today!!! Rofl Yeah, stocks doin' great!