Major Market Indexes at Critical Points

[Poker]

The major market indexes are at a critical point here. If the DOW closes below 7800, we are in for more hurt ladies and gent's. Dow closed just below 8000 today on it's lows for the day and the S&P 500, Nasdaq and Russel 2k all closed below their critical Oct lows...the Dow is the last shoe waiting to drop and it's gonna feel like a swift kick to the head of our economy if it does...

 

[draggar]

Maybe people should invest in real investments and not "play" investments. Gold, property, gems, etc..

 

[DomainsInc]

People should just ignore the stock market. They are doing this to themselves. They hear some bad news and sell, which causes panic, more people sell. Its a retarded circle jerk.

 

[lordbyroniv]

Dow is going to 6000

And it will be lucky to hold

May have a final wash-out between 4000 and 5000

We need a whole generation of people to swear off stocks

Like our grandparents

they remember 29

it was brutal

 

[Poker]

Dow is going to 6000

And it will be lucky to hold

May have a final wash-out between 4000 and 5000

Alright, time for a rant

Best to focus on reacting not predicting when it comes to financial markets. Why? The Markets couldn't give a rats azz what you or I think, they are going to do what they are going to do...your best bet is just to react to whatever that may be. If we break the levels I was talking about, there will be increased selling pressure but that is all that we can say for certain. Very few people thought that the Dow could drop from 14k 1 year ago to 8000 today, and way too many idiots tried to call a bottom to the decline all the way down.

For some reason, people still listen to these same fools for market advice and these same fools still have their jobs...dumb companies may pay fools for bad market advice (as long as they bring in accounts and commissions from ignorant clients) but the market itself never will.

 

[jdk]

People should just ignore the stock market. They are doing this to themselves. They hear some bad news and sell, which causes panic, more people sell. Its a retarded circle jerk.

Ding Ding Ding - Bingo :yes:

 

[tas38]

The market should start going back up early next year, many big loans to big biz have been giving out by banks. They will start spending it early next year, so look forwards to a slow upwards turn then.

Also look towards obama spending a few trillion, to jump start the markets as well. Giving to the poor will help as the poor, always spend it fast and will help boost the markets. Also big building projects, and even some long term projects should becoming with the next few years.

The stock market looks for short term gains, when in fact it should be looking for long term gains. Take GM stock it's at $3 and if GM makes it through this all, and start turning out good green autos then that stock will fly. Does the stock market see GM stock as a buy, no they don't they are selling it at big loses.

Because there is not going to be any short term gains, with in 5 to 10 years GM stock could be as high as $50 or better easy. Like homes it's a buyers market, they are dirt cheap and are not likely to get cheaper ever. But yet the stock market only see no short term gains, well the long term gains are super big right now.

 

[south]

The stock market looks for short term gains, when in fact it should be looking for long term gains. Take GM stock it's at $3 and if GM makes it through this all, and start turning out good green autos then that stock will fly. Does the stock market see GM stock as a buy, no they don't they are selling it at big loses.

Because there is not going to be any short term gains, with in 5 to 10 years GM stock could be as high as $50 or better easy. Like homes it's a buyers market, they are dirt cheap and are not likely to get cheaper ever. But yet the stock market only see no short term gains, well the long term gains are super big right now.

That's a big "if" though. Typically when a company declares bankruptcy, the stock goes to 0. Noone wants to be holding equities when they reach that number.

 

[lordbyroniv]

Its gonna take awhile before the Fed is succesful at re-inflating

But....don't fight the FED

 

[theinvestor]

Maybe people should invest in real investments and not "play" investments. Gold, property, gems, etc..

I agree, but i have noticed that the price of Gold hasn't been moving much with this current downside. I would think that the price would go up here...but it's staying stable.

 

[south]

I agree, but i have noticed that the price of Gold hasn't been moving much with this current downside. I would think that the price would go up here...but it's staying stable.

Yes. Noticed that as well. Illogical. Like everything else at the moment :sigh2:

Also notice Google dropping like the rest. Brick & mortar companies buy ads. When brick & mortars stop buying ads....

Not pretty.

Hang in there!

 

[lordbyroniv]

BUY GOLD !!!!!!!!!!!

Best hedge against inflation

And even though we are in a deflationary period right now

Be wary, the FED will INFLATE

 

[tas38]

( >>>> That's a big "if" though. >>>> )

The gov't will not let GM go down, ford CEO said they would not need any of the funds. But if GM was left go down, suppliers would go down they can't get parts then. And they would go down as well, we are talking massive damage to all markets then.

There is also 25 billion already set aside for auto makers to go green, they could let them use that because they will be doing that anyway. Plus obama will have 350 billion when he takes office, from the 700 billion bail out that already there.

There is also big investors that may invest in GM, the bottom line if GM is left go under, then all the markets will crash at light speed, and the dollar will be worthless. So it would not matter anyway, you need to remember panic would be world wide spade. It's not some thing, that can not be left happen even if republicans seem to not care.

Edited In:

Also I'm wondering why banks are not loaning GM funds, and if this is just another way for the banks to take GM. By with holding loans to them, it seems like it fine to bail out big fat banks. That have taking this market where it is now, and forcing teleco's to BK and then take over to get most of them. Now they may well be pulling the same thing with auto makers, why are banks not loaning them the funds they need.

 

[HarveyJ]

Tas is on the money here... automakers are actually going to be a really good stock to buy into, simply because the world is entirely dependent on motor transport.
Governments simply won't the larger auto-companies go bust, because it's the larger companies that make mas transport vehicles such as trucks, which provide supply.

So if they do go broke, one of two things is gonna happen.
1) A cashed up foreign company will buy it out. Hooray, your shares will go up in price, or you'll be offered shares in exchange of the merged company.
2) The government will take the company on itself, to prevent it going into the hands of a foreign owned company that could potentially screw the US over.

This second scenario is highly unlikely, particularly in the US. Regardless I only put it forward because it would be a last desperate act kind of thing, as I can't really see the US Gov allowing a country like say China to control automotive interests.

 

[south]

And an unlikely alternative considering the party of the pres elect:

3) the companies go into reorganizational bankrupty, bust the unions grip on them, and be able to become competitive.

edit: this is the correct solution, imho. How can a company compete when their biggest expense cannot be adjusted as the market adjusts?

 

[tas38]

( >>>> the companies go into reorganizational bankrupty >>>>)

That not really a option, as no one would ever buy a auto makers auto that in BK. Unless of course the gov't insure the auto's, and that a very very unlikely to get to that point.

 

[south]

( >>>> the companies go into reorganizational bankrupty >>>>)

That not really a option, as no one would ever buy a auto makers auto that in BK. Unless of course the gov't insure the auto's, and that a very very unlikely to get to that point.

Not disputing that necessarily. But they're not buying them now either. Sales way down.... http://online.wsj.com/mdc/public/page/2_3022-autosales.html#autosalesA

http://econompicdata.blogspot.com/2008/11/auto-sales-crash-again.html

Tas, just curious, do you use a newsreader to reply to the threads? Or maybe a text to speech program?

 

[tas38]

No I use (>>><<<) as away to show quotes.....

It's true they are not selling many new autos, but that because they got mostly gas hogs. And the green auto's they are making, cost much more but once they retool the cost will drop way down.

 

[south]

Dunno dude.

And while I would love to have a car that got 50+ mpg, I drive 40-50k miles per year. I looked at the prius before I made my last vehicle purchase. At the time, they said the batteries had to be changed out at about 100k miles. The batteries were in the thousands to change. 40,000 x 5 years (finance period) = 200,000 miles. Changing the batteries out just one time negates the money saved in fuel. I happily drive a Volvo S60 that averages about 25 mpg. And the safety & comfort (imagine being in a car 8-10 hours a day) of a larger car add a lot to the argument in favor of internal combustion. The math still isn't there for me to switch yet.

 

[tas38]

They can get green another way that is much better all the way around, put turbo chargers on small 4 cyc. More power and much better gas milage, as well as turn gears over to electric. That will also drop CO2 good as well, and some thing they can do fairly cheap.