Home › Forums › Financial Markets/Economics › Interesting sell off this morning!
- This topic has 46 replies, 12 voices, and was last updated 8 years, 7 months ago by spdrun.
October 15, 2014 at 7:23 AM #21259October 15, 2014 at 7:37 AM #778745
NASDAQ is down 10.3% off peak. We’re officially in a correction.October 15, 2014 at 9:18 AM #778749livinincaliParticipant
Market will probably close near the lows of the day. Get that order in and buy the dip. Of course I don’t expect that to work out very well for most investors. I do expect a bounce soon but if that bounce fails to make a new high look out below.October 15, 2014 at 9:40 AM #778752
Hopefully, a new high won’t happen soon. There are two choices:
(1) A 10-20% additional correction, taking us to mid-2013 levels on the indices.
(2) Another bounce to unrealistic valuations and then 50-60% down a year from now.
Corrections are healthy and normal. Best possible choice would be (1) followed by a flat market for years or a very slow melt-up. We need steadiness and predictability, not a constant roller coaster of speculative bubbles.October 15, 2014 at 9:45 AM #778754scaredyclassicParticipant
The market, the earth and society cares less what we need.
The only person who loves me is my mama and she might be jiving tooOctober 15, 2014 at 10:01 AM #778756
Got to admit it sure looks like we are going down,
Would not have guessed it, in L.A. things are going gang busters.
Usually I can tell when we are going into a slow down just by the freeway traffic in L.A.
If we don’t bounce today I think we are going down.
IMO anywayOctober 15, 2014 at 10:35 AM #778761CoronitaParticipant
15,900…… I think I will put some money back into indexes…October 15, 2014 at 10:40 AM #778762outtamojoParticipant
VIX is 30’s, near traditional SHORT term buy levels.October 15, 2014 at 10:40 AM #778763
If the Fed can stage-manage this into a correction, then a SLOW melt-up, then it would be a brilliant coup, unlike 2003 and 2009.
Seriously, this is an opportunity for the Fed and Congress to work together on real stimulus vs blowing bubbles.October 15, 2014 at 11:07 AM #778764
Real stimulus creates bubbles and inflation,
bubbles create real jobs and inflation.
pick your poison.
what is real stimulus anyway?October 15, 2014 at 11:27 AM #778765
You can have steady growth and slow inflation without bubbles. Our economy grew from the late 80s to mid 90s without the sort of boom-and-bust stock market behavior seen from 1995 to the present.
If anything, the cycle of bubble and busts since then has set us back at least twice.October 15, 2014 at 11:34 AM #778767
late 80’s to the mid 90’s was the recovery from the defense bubble in the early to late 80’s LOL.
It took 10 years 1989 – 1999 for most RE to recover.October 15, 2014 at 11:46 AM #778768
Nope. No stock market bubbles to dwarf previous bubbles since 1995. Nothing here to see. 1987 was considered a bad crash, and it was mild compared to early 2000s and 2008.
If we’d followed the trendline from the 80s through mid 90s, we’d be at about S&P 1000 now without two major recessionary shocks.
As far as real-estate “recovering” from a defence bubble in the early 80s, “recovery” implies that it was fairly priced in the early 80s. And that the re-pricing after the defence bubble burst was a disease, not strong medicine.October 15, 2014 at 11:55 AM #778770
When did 401K come into effect.
A lot of that is just 401K induced. NY would still be like it was in the 70’s had it not been for the 401K IMO.October 15, 2014 at 12:18 PM #778771
401(k) was codified in the late 70s and became popular in the mid-80s. Roth IRA came into being in late 90s. (Personally, I think laws should discourage risky investments as tax-free retirement vehicles, and either guarantee a decent gov’t pension to everyone, or mandate investment in very safe areas. Retirement shouldn’t be a casino.)
I can’t speak to the 70s, but frankly, I liked many aspects of NYC in the 1980s and early 90s. Cheap, more economically diverse, and less rule-abiding.
I remember someone complaining about paying $500/mo for a big 2 bedroom place on the Lower East Side in the early 90s.
Personally, I hope that a slowdown in the financial industry would force a diversification of the city into things like tech firms and R&D. A lot of creative effort put towards the finance industry (shifting Monopoly money around) is actually wasted effort — imagine if more of our best and brightest went into engineering and hard science vs finance. We have the world-class universities and a lot of damn smart people.
Keep in mind that Bell Labs was founded in NYC, so this would not be unprecedented.
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