WTF is going on with stock market

[chuckieland]

specially to Canadian StockMarket
nortel drop down to $1 on wednesday, and i thought that's a pretty good deal, so i brought some
1 1/2 day later it's 71 cents Cad. 29% drop in two fu*king day
WTF
can someone elighten me

 

[cjchaps]

Don't buy stocks at this time, they are too risky and unpredictible?

 

[Kevin]

Its the Media. Whatever the Media focuses on, they destroy that.

When Clinton was president, the Media focused on every aspect of him, leaving other things such as business and security un-noticed. Clinton leaves office and 9/11 occurs. The Media is focused mainly on 9/11. Forgets everything else. Then Enron collapses, the media is all over that, unsuccessfully trying to tie that to Bush. Now the media is focusing on Business which makes investors weary. Things that you would never hear about are suddenly appearing on front pages of newspapers.

Look at Microsoft. Everyone was so focused on that, then it disappeared "like a fart in the wind" (Shawshank Redemption). I truly believe the World Crisis is due to media coverage and publicity. How about all these kidnappings you were hearing about for some time. Almost every week they were reporting a child kidnapped? Now you haven't heard anything. Do you think people have stopped committing kidnappings? Nope. Its something thats been happening for years. Unfortunately, (and I hate to say this) but there is probably some child out there now who's beng kidnapped, and you wont' hear about it on the news. They're too busy prying into people's lives and making them uneasy. Trying to create scapegoats when they are to blame.

 

[ggavinmoss]

Originally posted by: cjchaps
Don't buy stocks at this time, they are too risky and unpredictible?

They're too risky for his risk tolerance. Equity investments all come with some inherent risk. Try something else with less risk.

 

[microAmp]

Don't too bad, I'm down 55% on my investment. I just keep buying at the lower prices to lower the break even point.

 

[Pastore]

Originally posted by: motoamd
Don't too bad, I'm down 55% on my investment. I just keep buying at the lower prices to lower the break even point.

Basically, if you want to stay in the market long term, and got screwed on something, this is the way to go.

Say you buy 100 shares of XXX for 10 dollars a piece. Then, say the stock goes down to 6 dollars a piece. You lost 400 dollars. Now, if you buy another 100 shares at 6 dollars a piece, you actually have 200 shares at 8 dollars a piece. Make sense?

 

[UNCjigga]

LOL, you bought Nortel!!! HAHA!!! Maybe in Mississauga or Markham (wherever the head office is?) things are rosy but over here in RTP, well, you won't find many Nortel investors!!!

 

[CPA]

Originally posted by: cjchaps
Don't buy stocks at this time, they are too risky and unpredictible?

That's right buy when the market is stable and prices are higher

 

[Vette73]

Looks like the market is still going down.

I don't think bottom is as close as you think. AMD is at $6, Intel $15, and I think they will drop at least another 10% if not more, before they rise,IF

 

[CPA]

Originally posted by: Beast1284

Originally posted by: motoamd
Don't too bad, I'm down 55% on my investment. I just keep buying at the lower prices to lower the break even point.

Basically, if you want to stay in the market long term, and got screwed on something, this is the way to go.

Say you buy 100 shares of XXX for 10 dollars a piece. Then, say the stock goes down to 6 dollars a piece. You lost 400 dollars. Now, if you buy another 100 shares at 6 dollars a piece, you actually have 200 shares at 8 dollars a piece. Make sense?

Wrong, wrong, wrong.

If you bought 100 shares and they are now worth 6 dollars your investment is now worth $600. If you buy another 100 at $6 then it is also worth $600. Your total portfolio is now $1200 (600+600), not $1600 (200x8), as your example points out.

You probably used this example to promote dollar cost averaging, but what you really did was weighted averaging, two entirely different things.

 

[BooneRebel]

A wise man once told me that dollar stocks are cheap for a reason. Stay away from them.

 

[microAmp]

Originally posted by: Marlin1975
Looks like the market is still going down.

I don't think bottom is as close as you think. AMD is at $6, Intel $15, and I think they will drop at least another 10% if not more, before they rise,IF

I've been thinking about buying more AMD stock, but wondering how much lower will it go. I figure another poor earnings report, plus earning warning from Intel will make it sink more.

 

[Platinum321]

houses are the only thing still going up in california..=\

 

[JellyBaby]

Truth is no one knows for sure, not even Lou Dobbs.

It's probably a combination of things: uncertainty, tech-bust residuals, Warmongering by Bush, high oil prices, slowly recovering economy, etc. I've also heard foreign investment in our stock market is very high now and these guys have been making big trades in and out of the market...not sure but that can't aid stability can it?

 

[CPA]

The stock market is inherently unstable. If it was stable, there would be no risk, thus returns would be low. Even when it was rising, it was unstable, even in risk assessment.

They say that the market is actually priced out 3 to 6 months ahead, sometimes a year. It is the reaction of expected future outcomes that guide it. We will know if 3 to 6 months if these expectations are correct.

Bush needs to go to war with Iraq now and get it over with. Once that happens, his focus can be redirected to the economy (well at least in appearance, if anything). Once the war is concluded, expectations should start to pick up again and the market should rebound. But hey, it's anyones guess, right?