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U.S. stocks in freefall

Posted: Mon Aug 08, 2011 1:30 pm
by Lbill
DOW is down by over 550 points with a couple hours of trading left. Trading halt on the way?

Posted: Mon Aug 08, 2011 1:36 pm
by ofcmetz
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?

Re: U.S. stocks in freefall

Posted: Mon Aug 08, 2011 1:37 pm
by ddb
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

Posted: Mon Aug 08, 2011 1:37 pm
by e5116
US Stocks? How about international stocks too. Emerging Markets are down over 8%...Only a 5.5% decline for US Stocks? Weak! ;)

Posted: Mon Aug 08, 2011 1:41 pm
by tipswatcher
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.

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

Posted: Mon Aug 08, 2011 1:45 pm
by shawcroft
"May you live in interesting times"
(said to be an ancient Chinese curse)
Shawcroft

Posted: Mon Aug 08, 2011 1:47 pm
by newport1
VIX is up 46%! Fear is rampant.

Posted: Mon Aug 08, 2011 1:47 pm
by Morgthorak
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! 8-)

:sharebeer

Posted: Mon Aug 08, 2011 1:48 pm
by Avo
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.

Posted: Mon Aug 08, 2011 1:51 pm
by aja8888
I'm pretty sure I will live through this correction. Maybe we will know the bottom when CNBC or Cramer calls it?

Re: U.S. stocks in freefall

Posted: Mon Aug 08, 2011 1:54 pm
by richard
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

Posted: Mon Aug 08, 2011 1:58 pm
by greg24
When is the vanguard purchase deadline?

Posted: Mon Aug 08, 2011 2:08 pm
by Dan Moroboshi
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.

Image

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

Posted: Mon Aug 08, 2011 2:08 pm
by chaz
Just fluctuation.

Posted: Mon Aug 08, 2011 2:11 pm
by FillorKill
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.

Posted: Mon Aug 08, 2011 3:27 pm
by AndroAsc
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.

Posted: Mon Aug 08, 2011 3:28 pm
by MWCA
I know that meme. Never seen it applied to this forum. Thanks for the laugh ;)

Posted: Mon Aug 08, 2011 3:34 pm
by ofcmetz
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.

Posted: Mon Aug 08, 2011 3:41 pm
by bcboy57
chaz wrote:Just fluctuation.


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

Posted: Mon Aug 08, 2011 3:48 pm
by chaz
bcboy57 wrote:
chaz wrote:Just fluctuation.


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


"I will return."

Posted: Mon Aug 08, 2011 3:52 pm
by minesweep
Down is faster.

MIke

Posted: Mon Aug 08, 2011 4:32 pm
by Dan Moroboshi
I bought some equities today.

I felt like Major Kong.

Image

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

Posted: Mon Aug 08, 2011 4:54 pm
by stevewolfe
chaz wrote:
bcboy57 wrote:
chaz wrote:Just fluctuation.


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


"I will return."


1942.

Posted: Mon Aug 08, 2011 5:00 pm
by natureexplorer
Interesting, how, on the first maket day after the (first) downgrade of US debt, international equities dropped more than US equities.

Posted: Mon Aug 08, 2011 5:06 pm
by chaz
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."

Posted: Mon Aug 08, 2011 5:08 pm
by Trader007
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.

Posted: Mon Aug 08, 2011 5:28 pm
by Pacal
Run for the hills, and take your money with you.... not :roll:

Posted: Mon Aug 08, 2011 6:06 pm
by aja8888
I can't wait to hear Cramer tonight. :lol:

Posted: Mon Aug 08, 2011 9:37 pm
by Lbill
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. . .

Posted: Mon Aug 08, 2011 9:52 pm
by UNI4MER
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.) :beer


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.

Posted: Mon Aug 08, 2011 10:17 pm
by fishnskiguy
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.) :beer


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

Posted: Mon Aug 08, 2011 10:38 pm
by Morgthorak
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. 8-)

Posted: Mon Aug 08, 2011 10:42 pm
by Imperabo
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.

Posted: Mon Aug 08, 2011 11:12 pm
by WatchinU
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

Posted: Tue Aug 09, 2011 8:03 am
by Regal 56
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.

Posted: Tue Aug 09, 2011 8:12 am
by Ed 2
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! 8-)

:sharebeer

+1

Posted: Tue Aug 09, 2011 8:16 am
by richard
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! 8-)

Are you thinking dividends won't be cut?

Posted: Tue Aug 09, 2011 8:25 am
by ddb
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

Posted: Tue Aug 09, 2011 8:44 am
by whiskers
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.

Posted: Tue Aug 09, 2011 8:44 am
by HomerJ
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...

Posted: Tue Aug 09, 2011 4:57 pm
by Regal 56
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?

Posted: Tue Aug 09, 2011 5:08 pm
by Lbill
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.

Posted: Tue Aug 09, 2011 5:18 pm
by Imperabo
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.

Posted: Tue Aug 09, 2011 5:22 pm
by Lbill
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.

Posted: Tue Aug 09, 2011 5:24 pm
by Imperabo
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.

Posted: Tue Aug 09, 2011 5:56 pm
by HomerJ
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.

Posted: Tue Aug 09, 2011 6:00 pm
by HomerJ
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.

Posted: Tue Aug 09, 2011 7:55 pm
by Lbill
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...

Posted: Tue Aug 09, 2011 8:16 pm
by GammaPoint
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.

Posted: Tue Aug 09, 2011 9:56 pm
by honkeoki
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.