Tomorrow could be a historic day......and not the good kind (1 Viewer)

bclemms

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With the Dow Jones Futures dropping 500 points the dow could be opening extremely low. There are articles out there predicting 1000+ point falls in the DJI, some are predicting complete meltdown. I don't really think it will go that far but I do think we may see some emergency actions tomorrow.

Not only did the futures take a huge hit but all the foreign markets took significant losses as well.


Stocks Plummet in Germany, Hong Kong, India, Brazil in Rout
Jan. 21 (Bloomberg) -- Stocks plunged in Germany, Hong Kong, India and Brazil, and U.S. index futures dropped on mounting speculation that the global economy is slowing and company defaults will rise.

Europe's Dow Jones Stoxx 600 Index fell the most since the Sept. 11 terrorist attacks and sank into a bear market, as Allianz SE and BNP Paribas SA slid. Hong Kong's Hang Seng Index had its biggest drop in six years after BNP Paribas said Bank of China Ltd. may write down overseas securities by $4.8 billion because of losses from U.S. subprime mortgages. Citigroup Inc. retreated in Frankfurt.
http://www.bloomberg.com/apps/news?pid=20601091&sid=a8g9S4628Mkw&refer=india



Futures plunge on U.S. recession fears
NEW YORK (Reuters) - U.S. stock index futures sank in holiday-shortened trading on Monday as fear of a U.S. recession gripped investors, indicating Wall Street was likely to join a global equity markets plunge that may usher in a bear market when trading resumes on Tuesday.

While cash equity markets were shut for the Martin Luther King Jr. Day holiday, index futures were very active in electronic trading through the Chicago Mercantile Exchange. U.S. stock markets reopen on Tuesday.
http://www.reuters.com/article/businessNews/idUSN2140979520080121
 
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bclemms

bclemms

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If you want to see something funny, sad and scary all rolled into one then youtube "The stock market ruined my life" but be prepared for a lot of F bombs.
 

Bayouboy

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It looks like a lot of folks will not be able to retire this year......
 

UncleTrvlingJim

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hmmm... it's going to be time to up my contributions to my 401K soon... at the moment, i have no exposure to the stock market except my 401k... and I don't retire for another 30 years... buying opportunity.
 
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bclemms

bclemms

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hmmm... it's going to be time to up my contributions to my 401K soon... at the moment, i have no exposure to the stock market except my 401k... and I don't retire for another 30 years... buying opportunity.
I read about buying opportunity in August, then again in November, then again the first week of this year and now I'm hearing buying opportunity. Maybe you are right but every economic indicator is saying this is just the beginning. Buy away tomorrow, I will sit on the sidelines for a while. I like gold still but I'm just going to hold the physical, I already dumped the gold stocks. It will likely get hit hard tomorrow too. The only money that will be made tomorrow is from the guys that bet the shorts.
 

RebSaint

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Correct me if I'm wrong, but I'm recalling a law right now which shuts down market activity if Wall Street loses too much money which goes back to the New Deal reforms.

:shrug:
 
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bclemms

bclemms

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Correct me if I'm wrong, but I'm recalling a law right now which shuts down market activity if Wall Street loses too much money which goes back to the New Deal reforms.

:shrug:

Yep, but it only goes into effect if the dow drops 350 points AFTER the market opens. Then it goes on hold for a little while before trading starts again.
 

UncleTrvlingJim

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I read about buying opportunity in August, then again in November, then again the first week of this year and now I'm hearing buying opportunity. Maybe you are right but every economic indicator is saying this is just the beginning. Buy away tomorrow, I will sit on the sidelines for a while. I like gold still but I'm just going to hold the physical, I already dumped the gold stocks. It will likely get hit hard tomorrow too. The only money that will be made tomorrow is from the guys that bet the shorts.

I'm not buying tomorrow, I'm waiting until there are a few weeks of solid gains before I enter in... but since I'm a long term investor, the ups and downs of the market aren't all that bothersome to me.
 
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bclemms

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I'm not buying tomorrow, I'm waiting until there are a few weeks of solid gains before I enter in... but since I'm a long term investor, the ups and downs of the market aren't all that bothersome to me.
I have been doing all short term trades since August. Before that I was doing all long term stuff. Now I am just going to take a seat on the bench.

It does bother me because when the market goes way down so does spending and it starts a cycle that is really going to hurt my business. I have prepared as best as possible since this is certainly no surprise but a hard recession or a depression will really hurt all small businesses. The huge corporations will be able to sustain but small businesses will be severely crippled.
 

alon504

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I'm concerned about this...my etrade account has, literally, been cut in half in the past 6 months. It's sick to watch, but, since I don't plan on doing anything with it until retirement, I'm leaving it alone, but, it's still upsetting to view online. I don't go see it that much anymore.
 

Saintman2884

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bclemms, I think the trend of a good economy Bush inherited in 2000 from Clinton is over. We are not in a bull market anymore. these things happen sometimes. their were financial hard times in Carter and Reagan administrations if you remember, probably Reagan had it worse in the latter part of his tenure in 87 and 88. The thing to remember though about the stock market is that it goes in cycles, you have a boom period and then you have a somewhat bust period, how you handle the bust period is a testament to whether or not your company survives. I am not that big of a Bush supporter as I used to be, but I don't think you can blame this possible recession entirely on him. he is partly to blame I think but the volatile nature of the stock market makes it very unpredictable. You had a good period for 20-30 years in the 50's, 60's and early 70's, then a bad period in the 70's and early 80's and then a boom period in the 90's with Clinton and the Internet. these things happen on a cyclical period. I remember thinking in 2001 after 9/11 that the economy was ruined but it wasn't, it survived then and it will survive this possible problem or problems
 

jpcdolphan

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There is always a buying opportunity somewhere.

This is why diversification is a good idea.

Contrary to what the talking (or screaming) heads in the media would have you believe, this isn't the first time we've been in a recession. Markets are cyclical, after all.
 

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