U.S. stocks in free fall

Lbill · Post by **Lbill** » Mon Aug 08, 2011 1:30 pm

DOW is down by over 550 points with a couple hours of trading left. Trading halt on the way?

ofcmetz · Post by **ofcmetz** » Mon Aug 08, 2011 1:36 pm

I put in an order to sell some of my bond fund today and purchase a little of my stock index. Would that still go through after hours if trading was halted?

ddb · Post by **ddb** » Mon Aug 08, 2011 1:37 pm

Lbill wrote:DOW is down by over 550 points with a couple hours of trading left. Trading halt on the way?

Why would there be a trading halt? On 09/29/2008, DJIA was down 774 points and I don't believe there was any serious talk of a halt. Also down 679 point on 10/09/2008, 733 points on 10/15/2008...you get the idea.

- DDB

e5116 · Post by **e5116** » Mon Aug 08, 2011 1:37 pm

US Stocks? How about international stocks too. Emerging Markets are down over 8%...Only a 5.5% decline for US Stocks? Weak!

tipswatcher · Post by **tipswatcher** » Mon Aug 08, 2011 1:41 pm

I said yesterday I suspected we'd see Dow 10,000.

Didn't expect it all in one day (!)

This is another lightning strike of our long-term bear market. Investors are running to the sidelines, fear is rampant. And who can blame us? This is how a bear market works: We have seen this before.

I am not doing anything at the moment. My stock/bond allocation was pretty conservative, and it got more conservative today, even though I did nothing.

shawcroft · Post by **shawcroft** » Mon Aug 08, 2011 1:45 pm

"May you live in interesting times"
(said to be an ancient Chinese curse)
Shawcroft

newport1 · Post by **newport1** » Mon Aug 08, 2011 1:47 pm

VIX is up 46%! Fear is rampant.

Morgthorak · Post by **Morgthorak** » Mon Aug 08, 2011 1:47 pm

We can only hope that this continues through the end of September, when our next round of dividends hits, so we can get more shares cheap!

Avo · Post by **Avo** » Mon Aug 08, 2011 1:48 pm

This is nowhere close to a "freefall". The flash crash was a freefall. Black Monday was pretty close to a freefall.

This is an orderly, completely predictable (and predicted) response to meaningless "news" that's followed a huge run up.

aja8888 · Post by **aja8888** » Mon Aug 08, 2011 1:51 pm

I'm pretty sure I will live through this correction. Maybe we will know the bottom when CNBC or Cramer calls it?

richard · Post by **richard** » Mon Aug 08, 2011 1:54 pm

Lbill wrote:DOW is down by over 550 points with a couple hours of trading left. Trading halt on the way?

Before 2:30, you need a 1,200 point drop. After 2:39, a 2,400 point drop

http://usequities.nyx.com/markets/nyse- ... t-breakers

greg24 · Post by **greg24** » Mon Aug 08, 2011 1:58 pm

When is the vanguard purchase deadline?

Dan Moroboshi · Post by **Dan Moroboshi** » Mon Aug 08, 2011 2:08 pm

tipswatcher wrote:I said yesterday I suspected we'd see Dow 10,000.

Didn't expect it all in one day (!)

Bah. I'm waiting for the Dow to hit 9000 so I can post pictures of Vegeta.

IT'S UNDER NINE THOUSAAAAAAND!!!

If you don't already get this meme, it's really not worth looking it up...

http://knowyourmeme.com/memes/its-over-9000

chaz · Post by **chaz** » Mon Aug 08, 2011 2:08 pm

Just fluctuation.

FillorKill · Post by **FillorKill** » Mon Aug 08, 2011 2:11 pm

Now I wish my buy transactions that will close today and tomorrow were bigger. More buying will be the name of the game for me.

AndroAsc · Post by **AndroAsc** » Mon Aug 08, 2011 3:27 pm

Why is it drop in stock market indexes are always reported in absolute figures? Not everyone know what the value was a week ago you know... reporting it in percentages would make things much better.

MWCA · Post by **MWCA** » Mon Aug 08, 2011 3:28 pm

I know that meme. Never seen it applied to this forum. Thanks for the laugh

ofcmetz · Post by **ofcmetz** » Mon Aug 08, 2011 3:34 pm

AndroAsc wrote:Why is it drop in stock market indexes are always reported in absolute figures? Not everyone know what the value was a week ago you know... reporting it in percentages would make things much better.

I've always thought this as well. Thankfully my app on my phone shoes me the percentages real time as well.

bcboy57 · Post by **bcboy57** » Mon Aug 08, 2011 3:41 pm

chaz wrote:Just fluctuation.

That's what McArthur said to the Japanese in 1945.....

chaz · Post by **chaz** » Mon Aug 08, 2011 3:48 pm

bcboy57 wrote:
chaz wrote:Just fluctuation.
That's what McArthur said to the Japanese in 1945.....

"I will return."

minesweep · Post by **minesweep** » Mon Aug 08, 2011 3:52 pm

Down is faster.

MIke

Dan Moroboshi · Post by **Dan Moroboshi** » Mon Aug 08, 2011 4:32 pm

I bought some equities today.

I felt like Major Kong.

For those that don't get the reference: http://www.youtube.com/watch?v=JlSQAZEp3PA#t=0m21s

stevewolfe · Post by **stevewolfe** » Mon Aug 08, 2011 4:54 pm

chaz wrote:
bcboy57 wrote:
chaz wrote:Just fluctuation.
That's what McArthur said to the Japanese in 1945.....
"I will return."

1942.

natureexplorer · Post by **natureexplorer** » Mon Aug 08, 2011 5:00 pm

Interesting, how, on the first maket day after the (first) downgrade of US debt, international equities dropped more than US equities.

chaz · Post by **chaz** » Mon Aug 08, 2011 5:06 pm

stevewolfe wrote:
chaz wrote:
bcboy57 wrote:
chaz wrote:Just fluctuation.
That's what McArthur said to the Japanese in 1945.....
"I will return."
1942.

"The S&P will return."

Trader007 · Post by **Trader007** » Mon Aug 08, 2011 5:08 pm

Free money from QE2 that´s selling i guess. If the area around here (~1090) in Spx does not hold i would not be surprised if we fall another 20%. Around 900. Last years June Low is also important.

Pacal · Post by **Pacal** » Mon Aug 08, 2011 5:28 pm

Run for the hills, and take your money with you.... not :roll:

aja8888 · Post by **aja8888** » Mon Aug 08, 2011 6:06 pm

I can't wait to hear Cramer tonight. :lol:

Lbill · Post by **Lbill** » Mon Aug 08, 2011 9:37 pm

Now Asian stocks are in freefall overnight. Hong Kong and Korea are down over 7% and trading was halted in Korea. Japan down about 5%. Wow, this is starting to look pretty grim. Gather up the women and children. . .

UNI4MER · Post by **UNI4MER** » Mon Aug 08, 2011 9:52 pm

BigD53 wrote:As soon as the President appeared on TV, the DOW went from being down "only" 300... to being down 500! :roll:

Moderator, you can delete my political comment. (Actually, just an observation.)

I respect this forum immensly. But I would like to see more flexibility when it comes to subject of politics. Now more than ever politics is affecting every aspect of investing and I feel that comments on current political policies and how they are affecting investment decisions are in order.

fishnskiguy · Post by **fishnskiguy** » Mon Aug 08, 2011 10:17 pm

UNI4MER wrote:
BigD53 wrote:As soon as the President appeared on TV, the DOW went from being down "only" 300... to being down 500! :roll:

Moderator, you can delete my political comment. (Actually, just an observation.)
I respect this forum immensly. But I would like to see more flexibility when it comes to subject of politics. Now more than ever politics is affecting every aspect of investing and I feel that comments on current political policies and how they are affecting investment decisions are in order.

Ain't gonna happen on our watch. Sorry.

Chris

Morgthorak · Post by **Morgthorak** » Mon Aug 08, 2011 10:38 pm

fishnskiguy wrote:
Ain't gonna happen on our watch. Sorry.

Chris

Thank you! That's one of the things I like most about this forum. No partisan crap to wade through.

Imperabo · Post by **Imperabo** » Mon Aug 08, 2011 10:42 pm

Lbill wrote:Now Asian stocks are in freefall overnight. Hong Kong and Korea are down over 7% and trading was halted in Korea. Japan down about 5%. Wow, this is starting to look pretty grim. Gather up the women and children. . .

Attempt to hide your glee.

WatchinU · Post by **WatchinU** » Mon Aug 08, 2011 11:12 pm

I know some folks that are shorting the market and they are sitting on some good gains. however, this could easily reverse if the market bounces

Regal 56 · Post by **Regal 56** » Tue Aug 09, 2011 8:03 am

I started my IRA a little over four years ago. Buy and hold all the way. My portfolio is now down 1.74% for that entire period. That's over four years of gains wiped away in the last two weeks. I'd imagine many people who started investing ten or twelve years ago have had similar experiences.

If you ask me, the last ten years are going to drive a whole lot people permanently out of the stock market. And frankly I wouldn't blame them.

Ed 2 · Post by **Ed 2** » Tue Aug 09, 2011 8:12 am

Findelglorin wrote:We can only hope that this continues through the end of September, when our next round of dividends hits, so we can get more shares cheap!

+1

richard · Post by **richard** » Tue Aug 09, 2011 8:16 am

Findelglorin wrote:We can only hope that this continues through the end of September, when our next round of dividends hits, so we can get more shares cheap!

Are you thinking dividends won't be cut?

ddb · Post by **ddb** » Tue Aug 09, 2011 8:25 am

Regal 56 wrote:I started my IRA a little over four years ago. Buy and hold all the way. My portfolio is now down 1.74% for that entire period. That's over four years of gains wiped away in the last two weeks. I'd imagine many people who started investing ten or twelve years ago have had similar experiences.

If you ask me, the last ten years are going to drive a whole lot people permanently out of the stock market. And frankly I wouldn't blame them.

This will surely drive lots of people out of the stock market altogether, but I don't think it will be permanently for most. The fear and greed cycle seems to be one of the most reliable aspects of human behavior. People will get out now, and they'll get back in down the road after a period of good performance.

A super-simple portfolio of 50% Vanguard Total World Fund and 50% Vanguard Total Bond Fund has a YTD performance of -3% through yesterday. This is hardly earth-shattering territory yet. Those who abandon strategy will be the ones who were taking too much risk to begin with, as is always the case.

Fortunately, this year has been good for diversification. CCF funds have outperformed global equity indices year-to-date. TIPS returns have been so good, it's almost getting uncomfortable! And of course, those into Gold are sitting pretty, with a 20+% YTD return.

- DDB

whiskers · Post by **whiskers** » Tue Aug 09, 2011 8:44 am

Regal 56 wrote:I started my IRA a little over four years ago. Buy and hold all the way. My portfolio is now down 1.74% for that entire period. That's over four years of gains wiped away in the last two weeks. I'd imagine many people who started investing ten or twelve years ago have had similar experiences.

If you ask me, the last ten years are going to drive a whole lot people permanently out of the stock market. And frankly I wouldn't blame them.

Over 4 years ago puts you in Spring, 2007 - that's a peaking area before the 2008 crisis. The DOW is down 20% over that time period, so I say you've done pretty well. I've been investing for about 2 years and the irrationality of the market has made me want to close all of my positions and throw my computer out the window multiple times. It's been a great learning experience.
You learn to deal with it - don't be greedy for the quick buck, buy stock in solid companies you like, diversify, diversify, diversify, don't forget about compounding, and hold the course - my hypothetical untouched portfolios (investopedia), my retirement account, as well as just index funds, all have outperformed what I have done in my 'fun' account.

Stocks are a bit up this morning, but they'll fall down again just like they'll rise as well.

HomerJ · Post by **HomerJ** » Tue Aug 09, 2011 8:44 am

Imperabo wrote:
Lbill wrote:Now Asian stocks are in freefall overnight. Hong Kong and Korea are down over 7% and trading was halted in Korea. Japan down about 5%. Wow, this is starting to look pretty grim. Gather up the women and children. . .

Attempt to hide your glee.

I know, right? There's seriously something wrong with Little Bill. He really is taking PLEASURE in this down-turn.

And it's a temporary down-turn, so I'm not even sure why he's so gleeful. It seems to make him happy to think we're all losing money, but in the long run we'll all be fine...

Regal 56 · Post by **Regal 56** » Tue Aug 09, 2011 4:57 pm

whiskers wrote:
Regal 56 wrote:I started my IRA a little over four years ago. Buy and hold all the way. My portfolio is now down 1.74% for that entire period. That's over four years of gains wiped away in the last two weeks. I'd imagine many people who started investing ten or twelve years ago have had similar experiences.

If you ask me, the last ten years are going to drive a whole lot people permanently out of the stock market. And frankly I wouldn't blame them.
Over 4 years ago puts you in Spring, 2007 - that's a peaking area before the 2008 crisis. The DOW is down 20% over that time period, so I say you've done pretty well. I've been investing for about 2 years and the irrationality of the market has made me want to close all of my positions and throw my computer out the window multiple times. It's been a great learning experience.
You learn to deal with it - don't be greedy for the quick buck, buy stock in solid companies you like, diversify, diversify, diversify, don't forget about compounding, and hold the course - my hypothetical untouched portfolios (investopedia), my retirement account, as well as just index funds, all have outperformed what I have done in my 'fun' account.

Stocks are a bit up this morning, but they'll fall down again just like they'll rise as well.

Well, today the market is up 430 points, so I'm happy again. Now where are my Lithium tablets?

Lbill · Post by **Lbill** » Tue Aug 09, 2011 5:08 pm

There's seriously something wrong with Little Bill. He really is taking PLEASURE in this down-turn.

I'm still seeking revenge against the stockbugs who were getting rich during the dotcom craze. I hope they've all lost their money by now. But, even more important, I want to see stocks get killed so I can buy. The last time I bought was the very day the S&P hit bottom at 666 back in March 2009. Going for a 2-fer.

Imperabo · Post by **Imperabo** » Tue Aug 09, 2011 5:18 pm

Lbill wrote:
There's seriously something wrong with Little Bill. He really is taking PLEASURE in this down-turn.
I'm still seeking revenge against the stockbugs who were getting rich during the dotcom craze. I hope they've all lost their money by now. But, even more important, I want to see stocks get killed so I can buy. The last time I bought was the very day the S&P hit bottom at 666 back in March 2009. Going for a 2-fer.

You consider these acceptable motivations for incessantly starting threads bashing stocks and those who hold them (most of which cover the same ground from slightly different angles), and reveling in the pain of others? Kinda sad.

Lbill · Post by **Lbill** » Tue Aug 09, 2011 5:22 pm

No, I honestly think that investing in stocks stinks. It's a legitimate viewpoint even though it's a voice in wilderness in the Cult of Equities. You can make pretty good returns without undergoing the torture of the stock market - I always have.

Imperabo · Post by **Imperabo** » Tue Aug 09, 2011 5:24 pm

Lbill wrote:No, I honestly think that investing in stocks stinks. It's a legitimate viewpoint even though it's a voice in wilderness in the Cult of Equities. You can make pretty good returns without undergoing the torture of the stock market - I always have.

I liked your first answer better. It was refreshing honest. Envy is truly mankind's darkest motivator.

HomerJ · Post by **HomerJ** » Tue Aug 09, 2011 5:56 pm

Lbill wrote:No, I honestly think that investing in stocks stinks. It's a legitimate viewpoint even though it's a voice in wilderness in the Cult of Equities. You can make pretty good returns without undergoing the torture of the stock market - I always have.

Well, you're doing it wrong... Instead of promoting an alternative point of view, you sound like a mooing cow.

HomerJ · Post by **HomerJ** » Tue Aug 09, 2011 6:00 pm

Lbill wrote:You can make pretty good returns without undergoing the torture of the stock market - I always have.

The last time I bought was the very day the S&P hit bottom at 666 back in March 2009

even more important, I want to see stocks get killed so I can buy

You're not making a lot of sense.

You've never doubled your money via investment in 2 years OUTSIDE the stock market. So apparently you think the torture IS worth it. In fact, you're hoping to get back in again.

Lbill · Post by **Lbill** » Tue Aug 09, 2011 7:55 pm

Instead of promoting an alternative point of view, you sound like a mooing cow.

You seem to like that phrase. How many cows are you personally acquainted with, and what is the nature of your acquaintance? Just wondering...

GammaPoint · Post by **GammaPoint** » Tue Aug 09, 2011 8:16 pm

I've seen dozens of Lbill's threads or posts against stock ownership. I always guessed that he just didn't have a high risk tolerance (which there's nothing wrong with) but then also wants the best of both worlds and is trying to justify the belief that investing in stocks is a loser's game in the long-term. Maybe so that he doesn't have to feel like he's missing out on any returns. And I guess this all started during the "dotcom craze" when he wasn't holding enough stock as he would have liked, as he basically just admitted to.

I say everyone should just invest along with their own need, ability, and desire to take risk, and let everyone else happily do the same.

honkeoki · Post by **honkeoki** » Tue Aug 09, 2011 9:56 pm

Lbill wrote:I'm still seeking revenge against the stockbugs who were getting rich during the dotcom craze. I hope they've all lost their money by now. But, even more important, I want to see stocks get killed so I can buy.

I have to say it's truly refreshing to see your motivations laid bare. --inflammatory comments deleted--

Thanks for your honesty. I really do appreciate it.

Edited to add:

Since the mods saw fit to tone down my previous statement, let me reword it a little more tactfully:

Many who post in this forum have axes to grind, but it's rare that they're so up front and open about it. They very rarely show you the axe.

Thanks for showing us your axe.

Bogleheads.org

U.S. stocks in free fall

U.S. stocks in free fall

Re: U.S. stocks in freefall

The Chinese had a thought for these situations....

Re: U.S. stocks in freefall