Equity prices are dictated by earnings and nothing in the overall earnings outlook seems so bad to think a Dow below 5000 is eminent.
a recession is only in the mind of those who believe it. stocks will drop more tomorrow. I was going to buy about $15K today but realized that my efforts were best suited for a recovery effort. no point in trying to help a recovery effort if all I'm going to do is see my stocks drop even more.
with this drop, you can expect more to be edgy tomorrow. although companies will be able to buy back there stocks per new SEC rules, we can still expect another 5% or so drop tomorrow. we are not going into a recession. This is in someways good. it'll deflate almost all overinflated stocks. Bottoming out. This woudl've happened eventually and this panic selling is just helping drop these stocks down to normal levels. Although some of the lower priced stocks are also taking the hit, i think the stock market will level out for a while and then once things settle over this mess, we will see it rebound. but keep in mind this rebound will not be like the increases we've seen from the likes of the past years. we will see more gradual increases rather than large increases. people are going to be tentative about the stock market. worried about the economy. and that is why I believe that recession is in the minds of those who believe it.
apart from that today we saw the airlines and travel dotcoms take a hit with continental losing about 50%. If the US decides to bailout these airlines, I'm not sure what it will do. We're talking about another $30B or so to bail these guys out. They're cutting flights. Cutting employees. Spending more on security.
with this drop, you can expect more to be edgy tomorrow. although companies will be able to buy back there stocks per new SEC rules, we can still expect another 5% or so drop tomorrow. we are not going into a recession. This is in someways good. it'll deflate almost all overinflated stocks. Bottoming out. This woudl've happened eventually and this panic selling is just helping drop these stocks down to normal levels. Although some of the lower priced stocks are also taking the hit, i think the stock market will level out for a while and then once things settle over this mess, we will see it rebound. but keep in mind this rebound will not be like the increases we've seen from the likes of the past years. we will see more gradual increases rather than large increases. people are going to be tentative about the stock market. worried about the economy. and that is why I believe that recession is in the minds of those who believe it.
apart from that today we saw the airlines and travel dotcoms take a hit with continental losing about 50%. If the US decides to bailout these airlines, I'm not sure what it will do. We're talking about another $30B or so to bail these guys out. They're cutting flights. Cutting employees. Spending more on security.
<< It would not suprise me if the Dow falls below 6000 by the end of this month and 5000 by years end. >>
Life as we know it would crumble if that happened...
Too many average people own stock for that to ever be allowed... The government would start buying stock itself to prevent it from happening...
Jason
<< Update at 2:58
Dow down 676
and Nasdaq 112
hard to know which way tomorrow will go. all big Corps are talking about buy back some of their stock, but at this economic, who got money to buy it back? >>
Most companies have billions of dollars in cash reserves... How do you think some companies can report millions in losses year after year...
Microsoft for exmaple has about 43 billion in cash in the bank...
Jason
I think the new war and security measures for planes, rail, trucks, mail, shipping, communications, law enforcement, etc. will inevitably drag down the US economic machine. This will show in decreased capacities of companies and decreased consumption of consumers. Government spending will not make up for the lost in private sect. liquidity and investment.
shhh!!! Don't talk about it.
btw, it looks like we weathered the storm without *too* much dropping
btw, it looks like we weathered the storm without *too* much dropping
I'm kind of desensetized by these losses by now. After a year of getting reamed left and right by the slow economy, another hit to my portfolio isn't gonna make a difference.
TRENDING THREADS
-
Discussion Zen 5 Speculation (EPYC Turin and Strix Point/Granite Ridge - Ryzen 9000)- Started by DisEnchantment
- Replies: 25K
-
Discussion Intel Meteor, Arrow, Lunar & Panther Lakes + WCL Discussion Threads
- Started by Tigerick
- Replies: 23K
-
Discussion Intel current and future Lakes & Rapids thread- Started by TheF34RChannel
- Replies: 23K
-
-
Facebook
Twitter