Stock Market

[MaTH716]

Originally Posted by dalakhani

No, its not that. I think the market needs a giant blowout in order to establish some sort of bottom. I see its coming back now but i think thats bad.

Perhaps it will sell off before the end of the day.

It is going to be hard to establish a bottom, with what seems to be nothing but bad news in the immediate future. Unemployment is up. Big companies (including the fianancials) are struggling and laying off more people. Retailers are already bracing for very bad Christmans seasons. Forget about the auto industry. People are having trouble paying their mortgages, just wait until they can't or stop paying their credit card bills. It just seems like there is or no reason to be positive in the immediate future.

[Antitrust32]

Originally Posted by MaTH716

It is going to be hard to establish a bottom, with what seems to be nothing but bad news in the immediate future. Unemployment is up. Big companies (including the fianancials) are struggling and laying off more people. Retailers are already bracing for very bad Christmans seasons. Forget about the auto industry. People are having trouble paying their mortgages, just wait until they can't or stop paying their credit card bills. It just seems like there is or no reason to be positive in the immediate future.

its called your money in a shoe box in your closet method!

[MaTH716]

Originally Posted by Antitrust32

its called your money in a shoe box in your closet method!

Well either my box has a hole in it, or my wife gas discovered my bounty.

[dalakhani]

Originally Posted by MaTH716

It is going to be hard to establish a bottom, with what seems to be nothing but bad news in the immediate future. Unemployment is up. Big companies (including the fianancials) are struggling and laying off more people. Retailers are already bracing for very bad Christmans seasons. Forget about the auto industry. People are having trouble paying their mortgages, just wait until they can't or stop paying their credit card bills. It just seems like there is or no reason to be positive in the immediate future.

You are correct on all that you say but regardless of market conditions, at some point there is value...even now.

An interesting point came up when a couple of colleagues were chewing on the gloomy state of the market. IF a good perecentage of the economy was created by poor credit risk, does that mean that the contraction that we are experiencing is more longterm than short? The points you made in that post support that premise.

[MaTH716]

Originally Posted by dalakhani

You are correct on all that you say but regardless of market conditions, at some point there is value...even now.

An interesting point came up when a couple of colleagues were chewing on the gloomy state of the market. IF a good perecentage of the economy was created by poor credit risk, does that mean that the contraction that we are experiencing is more longterm than short? The points you made in that post support that premise.

I believe that this is not going to be a short term problem. It is going to take a couple of years (at the least) for us to snap out of this slide/recession. It can't/won't happen overnight. The biggest thing (I think) that has to be fixed is the job market/unemployment rate. People need jobs so they could pay their bills, buy things and most impotantly create tax revenue. That's where it all starts. Until then, everything is going to continue to snowball.

You are right about values, but when the market is so one dircetional like it has been (even on days we are up) it just doesn't matter right now.