Dow flirting with 12,000 – the market has everyone’s attention…

[CAwireman]

Seems to be a dichotomy of posters on this board. If you have money in 401K or if you have money outside of retirement accounts, its gotta be really tough to be in this market right now.

No jokes or ribs here. This is rough…

~~~~~
AP
Posted: 2008-01-17 18:14:49
xhl(Stocks Extend Plunge Ad dreadful numbers,” said John O’Donoghue, co-head of equities at Cowen & Co. He said if you look back at Philadelphia Fed data for similar numbers, it takes you back to the 2001 to 2002 recession.

“It’s not rocket science – the economy is slowing dramatically, and it’s being reflected in economic reports.”

The Dow, which had been up more than 50 points early in the session, closed down 306.95, or 2.46 percent, at 12,159.21.

The Dow is now off 8.33 percent for the year; there have been just 12 trading days so far in 2008, but the index’s frequent triple-digit losses have now forced it to give back its 2007 gains. The Dow had its lowest close since it ended the March 16, 2007, session at 12,110.41.

The Dow’s decline also left it about 150 points above 12,000, a level it hasn’t closed below since November 2006.

The broader market indicators also plummeted. The S&P 500 index lost 39.95, or 2.91 percent, closing at 1,333.25, and leaving it was a year-to-date loss of 9.2 percent, while the Nasdaq dropped 47.69, or 1.99 percent, to 2,346.90, giving it a 2008 deficit of 11.51 percent.

Thursday brought the lowest close for the S&P 500 since October 2006 and the worst for the Nasdaq since March of last year.

Declining issues outnumbered advancers by more than 5 to 1 on the New York Stock Exchange, where consolidated volume came to a heavy 5.41 billion shares compared with 5.25 billion traded Wednesday.

Bond prices rose as stocks fell and anxious investors sought the safety of government-issued securities. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 3.63 percent from 3.68 percent late Wednesday. The dollar was mixed against other major currencies.

The Chicago Board Options Exchange’s volatility index, known as the VIX, and often referred to as the “fear index,” jumped nearly 17 percent Thursday.

Light, sweet crude fell 71 cents to settle at $90.13 a barrel on the New York Mercantile Exchange after Bernanke’s prediction of slower economic growth this year. Slowing growth could dampen demand for oil.

The Philadelphia manufacturing reading caught Wall Street by surprise – igniting fears that the economy is slowing precipitously and that policymakers might be too late in contemplating aid.

Economists had expected the Philadelphia index would come in at a negative 1.5, according to Dow Jones Newswires. Instead, the negative 20.9 figure was the weakest since October 2001 when the economy was reeling from the shock of the Sept. 11 terror attacks.

Jim Herrick, manager of equity trading at Baird & Co., contends that the Philadelphia Fed reading and other recent negative economic reports indicate the economy is likely in a downturn.

Other economic reports added to investors’ glum mood. The Commerce Department said housing starts plunged 14 percent to 1.01 million in December, marking the weakest pace of home building in more than 16 years. In addition, permits to build new homes dropped 8 percent last month to 1.07 million, the lowest level since 1993.

The week’s steady flow of news, much of which has dented investor sentiment, has led to a growing chorus of calls for the Fed to cut rates. The Fed’s monetary policy committee will meet Jan. 29-30 and is widely expected to lower its Fed funds target from the current 4.25 percent level. Bernanke on Thursday reiterated recent signals that the central bank will reduce rates for a fourth straight time.

Some on Wall Street have called for the Fed to intervene sooner with steep rate cuts.

The economic concerns come in a week in which some of Wall Street’s biggest names have posted huge losses following bad bets on mortgage investments. Financial shares fell sharply Thursday after the reports have made clear that there is also increasing weakness in home equity and other consumer banking operations.

[Raybyrnes]

HiggyBaby

It sucks to look and see all that red in your online statements.

The only concellation I have is that I moved the majority of my 401K into cash and bond funds to lock in gains. That doesn’t do much for my equity positons in my Roth and Brokerage accounts.

Have to really get comfortable with your asset allocation. I am conuing to dollar cost average into S& P Index funds(Schwab SWPIX), Total Market (SWTIX), Materials(ICBMX), and Real Esate Investment trusts (CSRSX) and INternational (DODFX) and ETF EFA.

Other accounts cover growth American Funds AGTHX and value.

All in all you can look at is as things suckking or if you are in it for the longs haul things finally starting to sell at a discount.

While many complain about housing being overpriced, your returns elsewhere are pretty shitty right now aswell. At least my experience for the start of 2008.

That said I would still be in the camp of telling those with large position of equity in their home and great credit that it might be teh time to look into cash out refi on a 15 year mortgage and seeing if you can’t gett a 5.25% interest rate.

Good buying opportunities will present themselves for those with liquid cash in the not too distant future.

[Raybyrnes]

HiggyBaby

It sucks to look and see all that red in your online statements.

The only concellation I have is that I moved the majority of my 401K into cash and bond funds to lock in gains. That doesn’t do much for my equity positons in my Roth and Brokerage accounts.

Have to really get comfortable with your asset allocation. I am conuing to dollar cost average into S& P Index funds(Schwab SWPIX), Total Market (SWTIX), Materials(ICBMX), and Real Esate Investment trusts (CSRSX) and INternational (DODFX) and ETF EFA.

Other accounts cover growth American Funds AGTHX and value.

All in all you can look at is as things suckking or if you are in it for the longs haul things finally starting to sell at a discount.

While many complain about housing being overpriced, your returns elsewhere are pretty shitty right now aswell. At least my experience for the start of 2008.

That said I would still be in the camp of telling those with large position of equity in their home and great credit that it might be teh time to look into cash out refi on a 15 year mortgage and seeing if you can’t gett a 5.25% interest rate.

Good buying opportunities will present themselves for those with liquid cash in the not too distant future.

[Raybyrnes]

HiggyBaby

It sucks to look and see all that red in your online statements.

The only concellation I have is that I moved the majority of my 401K into cash and bond funds to lock in gains. That doesn’t do much for my equity positons in my Roth and Brokerage accounts.

Have to really get comfortable with your asset allocation. I am conuing to dollar cost average into S& P Index funds(Schwab SWPIX), Total Market (SWTIX), Materials(ICBMX), and Real Esate Investment trusts (CSRSX) and INternational (DODFX) and ETF EFA.

Other accounts cover growth American Funds AGTHX and value.

All in all you can look at is as things suckking or if you are in it for the longs haul things finally starting to sell at a discount.

While many complain about housing being overpriced, your returns elsewhere are pretty shitty right now aswell. At least my experience for the start of 2008.

That said I would still be in the camp of telling those with large position of equity in their home and great credit that it might be teh time to look into cash out refi on a 15 year mortgage and seeing if you can’t gett a 5.25% interest rate.

Good buying opportunities will present themselves for those with liquid cash in the not too distant future.

[Raybyrnes]

HiggyBaby

It sucks to look and see all that red in your online statements.

The only concellation I have is that I moved the majority of my 401K into cash and bond funds to lock in gains. That doesn’t do much for my equity positons in my Roth and Brokerage accounts.

Have to really get comfortable with your asset allocation. I am conuing to dollar cost average into S& P Index funds(Schwab SWPIX), Total Market (SWTIX), Materials(ICBMX), and Real Esate Investment trusts (CSRSX) and INternational (DODFX) and ETF EFA.

Other accounts cover growth American Funds AGTHX and value.

All in all you can look at is as things suckking or if you are in it for the longs haul things finally starting to sell at a discount.

While many complain about housing being overpriced, your returns elsewhere are pretty shitty right now aswell. At least my experience for the start of 2008.

That said I would still be in the camp of telling those with large position of equity in their home and great credit that it might be teh time to look into cash out refi on a 15 year mortgage and seeing if you can’t gett a 5.25% interest rate.

Good buying opportunities will present themselves for those with liquid cash in the not too distant future.

[Raybyrnes]

HiggyBaby

It sucks to look and see all that red in your online statements.

The only concellation I have is that I moved the majority of my 401K into cash and bond funds to lock in gains. That doesn’t do much for my equity positons in my Roth and Brokerage accounts.

Have to really get comfortable with your asset allocation. I am conuing to dollar cost average into S& P Index funds(Schwab SWPIX), Total Market (SWTIX), Materials(ICBMX), and Real Esate Investment trusts (CSRSX) and INternational (DODFX) and ETF EFA.

Other accounts cover growth American Funds AGTHX and value.

All in all you can look at is as things suckking or if you are in it for the longs haul things finally starting to sell at a discount.

While many complain about housing being overpriced, your returns elsewhere are pretty shitty right now aswell. At least my experience for the start of 2008.

That said I would still be in the camp of telling those with large position of equity in their home and great credit that it might be teh time to look into cash out refi on a 15 year mortgage and seeing if you can’t gett a 5.25% interest rate.

Good buying opportunities will present themselves for those with liquid cash in the not too distant future.

[CAwireman]

And lots of people going liquid right now and sticking.

(And I don’t mean drinking away sorrows…)

I’m sure it will settle out eventually. But, you gotta wonder – with all the rampant speculation, is this the falling out and correction that we’ve been dodging for years and years?

As much as I’d like to get a good price on a home in the area, I just hope there’s an economy left for the middle class when its all said and done….

HiggyBaby

[CAwireman]

And lots of people going liquid right now and sticking.

(And I don’t mean drinking away sorrows…)

I’m sure it will settle out eventually. But, you gotta wonder – with all the rampant speculation, is this the falling out and correction that we’ve been dodging for years and years?

As much as I’d like to get a good price on a home in the area, I just hope there’s an economy left for the middle class when its all said and done….

HiggyBaby

[CAwireman]

And lots of people going liquid right now and sticking.

(And I don’t mean drinking away sorrows…)

I’m sure it will settle out eventually. But, you gotta wonder – with all the rampant speculation, is this the falling out and correction that we’ve been dodging for years and years?

As much as I’d like to get a good price on a home in the area, I just hope there’s an economy left for the middle class when its all said and done….

HiggyBaby

[CAwireman]

And lots of people going liquid right now and sticking.

(And I don’t mean drinking away sorrows…)

I’m sure it will settle out eventually. But, you gotta wonder – with all the rampant speculation, is this the falling out and correction that we’ve been dodging for years and years?

As much as I’d like to get a good price on a home in the area, I just hope there’s an economy left for the middle class when its all said and done….

HiggyBaby

[CAwireman]

And lots of people going liquid right now and sticking.

(And I don’t mean drinking away sorrows…)

I’m sure it will settle out eventually. But, you gotta wonder – with all the rampant speculation, is this the falling out and correction that we’ve been dodging for years and years?

As much as I’d like to get a good price on a home in the area, I just hope there’s an economy left for the middle class when its all said and done….

HiggyBaby

[drunkle]

parked 75% of the 401 in money markets last month, remaining 25 still in janus 20 which is taking a beating as apple, goog, rim and wells are selling off.

luckily, it’s not a lot of money to begin with.

housing stocks are making a strong run…

[drunkle]

parked 75% of the 401 in money markets last month, remaining 25 still in janus 20 which is taking a beating as apple, goog, rim and wells are selling off.

luckily, it’s not a lot of money to begin with.

housing stocks are making a strong run…

[drunkle]

parked 75% of the 401 in money markets last month, remaining 25 still in janus 20 which is taking a beating as apple, goog, rim and wells are selling off.

luckily, it’s not a lot of money to begin with.

housing stocks are making a strong run…

[drunkle]

parked 75% of the 401 in money markets last month, remaining 25 still in janus 20 which is taking a beating as apple, goog, rim and wells are selling off.

luckily, it’s not a lot of money to begin with.

housing stocks are making a strong run…

[Author]

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