OK. NOW are we in a market correction?

[Accipiter22]

Dow down 395 in 3 days...oof.

 

[RaistlinZ]

I think we're past it being a simple correction. High oil prices + rising interest rates + inflation + rising energy prices = beginning of a recession?

Either way it's bad news for investors. That 5% e-savings account with Citibank is starting to look pretty damn good with every passing day.

 

[bennylong]

it's the end of the world!@ thank god I have money under the mattress. now to pray the apartment doesn't burn down

 

[SampSon]

I'm up for another recession.

 

[DainBramaged]

Originally posted by: SampSon
I'm up for another recession.

Same here. BRING IT, BITCHES!

 

[SampSon]

Originally posted by: DainBramaged

Originally posted by: SampSon
I'm up for another recession.

Same here. BRING IT, BITCHES!

The economy ain't got SH!T on me.

 

[DainBramaged]

Originally posted by: SampSon

Originally posted by: DainBramaged

Originally posted by: SampSon
I'm up for another recession.

Same here. BRING IT, BITCHES!

The economy ain't got SH!T on me.

Sheeeeit, dawg, motherfvcking economy ain't nevah done sheeit for me. Peeps still buy my green, dawg.

 

[The Batt?sai]

Originally posted by: bennylong
it's the end of the world!@ thank god I have money under the mattress. now to pray the apartment doesn't burn down

money will be worthless in a depression :Q

 

[Slew Foot]

Ive been predicting the US to head into a recession at the end of 2006 for about a year now. Well see what happens.

 

[xanis]

Meh, I'm ready. I have my bike, canned nonperishables, and tent. BRING IT ON!!!

 

[PokerGuy]

Actually, I pulled out everything I have from the market a couple of weeks ago and moved it to guaranteed return funds and bond funds. Unfortunately, I think we're heading for a major recession.....

The economy has been driven by people overspending and people pulling money out of their home equity based on a strong real estate market. The government has been dificit spending for years, it's going to be time to pay the piper soon.

 

[spaceman]

i have fishing tackle.

 

[fitzov]

You can shuffle the numbers around all you want, but when I see vets in the street that tells me there's something wrong with the economy.

 

[Stunt]

Originally posted by: SampSon

Originally posted by: DainBramaged

Originally posted by: SampSon
I'm up for another recession.

Same here. BRING IT, BITCHES!

The economy ain't got SH!T on me.

Poor economy has no effect on you?

 

[DaveSimmons]

Originally posted by: fitzov
You can shuffle the numbers around all you want, but when I see vets in the street that tells me there's something wrong with the economy.

Or at least you see grifters with "help a vet god bless" signs to up their take from the suckers.

 

[RichardE]

You guys are all overeacting..Bush and Co will save us.

 

[andylawcc]

Originally posted by: Stunt

Originally posted by: SampSon

Originally posted by: DainBramaged

Originally posted by: SampSon
I'm up for another recession.

Same here. BRING IT, BITCHES!

The economy ain't got SH!T on me.

Poor economy has no effect on you?

it certainly does on my next stock purchase. Cheaper Stock FTW

 

[Stunt]

Originally posted by: RichardE
You guys are all overeacting..Bush and Co will save us.

Typically the last 2 years of a president's term outperforms the first two by many times over.

2006-2008 could be different, but look at this trend:
link

Two investors, both with $1000.
One invests year 1 to year 2 of presidential term (since the 50's) = $643 (loses money)
Other invests year 3 to year 4 of presidential term (since the 50's) = $72,701 (72 times more money)

 

[AccruedExpenditure]

Economy != Stock Market.

 

[Vic]

Originally posted by: AccruedExpenditure
Economy != Stock Market.

Or the Dow Jones Industrial for that matter.

It never ceases to amaze me that most people dislike corporatism but at the same time they will base the health of the entire national economy off the stock performance of a mere 30 major corporations. Talk about a disconnect!

Yes, the economy is slowing down. Energy prices are up and the Fed has raised interest rates 17 times in a row. What else would you expect? The good news is that an economic slowdown will cycle a moderation in inflation and the Fed should stop raising rates (soon). In addition, a downturn in the market will bring about buying opportunities.

 

[thirtythree]

Originally posted by: Stunt

Originally posted by: RichardE
You guys are all overeacting..Bush and Co will save us.

Typically the last 2 years of a president's term outperforms the first two by many times over.

2006-2008 could be different, but look at this trend:
link

Two investors, both with $1000.
One invests year 1 to year 2 of presidential term (since the 50's) = $643 (loses money)
Other invests year 3 to year 4 of presidential term (since the 50's) = $72,701 (72 times more money)

Interesting.

 

[ShotgunSteven]

Originally posted by: Vic

Originally posted by: AccruedExpenditure
Economy != Stock Market.

Or the Dow Jones Industrial for that matter.

It never ceases to amaze me that most people dislike corporatism but at the same time they will base the health of the entire national economy off the stock performance of a mere 30 major corporations. Talk about a disconnect!

Yes, the economy is slowing down. Energy prices are up and the Fed has raised interest rates 17 times in a row. What else would you expect? The good news is that an economic slowdown will cycle a moderation in inflation and the Fed should stop raising rates (soon). In addition, a downturn in the market will bring about buying opportunities.

Exactly. Problem is, too many people jump on the bandwagon when it's already at the top of the hill, then sell as soon as it starts going down a bit.

 

[Stonesoldier]

i got beans n bullets


bring on the depression
:laugh:

 

[dmcowen674]

Originally posted by: RichardE
You guys are all overeacting..Bush and Co will save us.

Didn't they already save us?

They keep saying the Economy is the best evar.

 

[PokerGuy]

Originally posted by: Vic

Originally posted by: AccruedExpenditure
Economy != Stock Market.

Or the Dow Jones Industrial for that matter.

It never ceases to amaze me that most people dislike corporatism but at the same time they will base the health of the entire national economy off the stock performance of a mere 30 major corporations. Talk about a disconnect!

Yes, the economy is slowing down. Energy prices are up and the Fed has raised interest rates 17 times in a row. What else would you expect? The good news is that an economic slowdown will cycle a moderation in inflation and the Fed should stop raising rates (soon). In addition, a downturn in the market will bring about buying opportunities.

Be that as it may, the stock market is not the same as the economy, but the publically traded stocks reflect the valuation of the companies. The valuation is based on the expected growth of the profits of the company. Clearly, investors are rattled that a combination of factors makes them believe the profit underlying the value of publically traded companies is not headed in the right direction. That's the market verdict. That doesn't mean long term it won't change, but I see a lot of dark clouds gathering in terms of the economy, and I'm glad I pulled out of the stock market a couple of weeks ago.

I understand very well what drives market values and how the economy works -- I work in corporate finance. I hope my view of the long term indicators is wrong.....