Posted on 01/22/2008 5:03:46 AM PST by al baby
Global stock markets extended their shakeout into a second day Tuesday, plunging amid worries that a possible U.S. recession will cause a worldwide economic slowdown. The dramatic declines were expected to spread to Wall Street, where stock index futures were already down sharply hours before the trading day began
....for me it’s too late to sell, and too early to buy.
Market heads for the tank. Stops kick in. Panic ensues. Market closes by noon. OK! Now that the worst case scenario is out there, time for some realistic prognostication.
Feds drops the rates by 1 point?????
I still don’t quite get this futures thing. If futures are pending sales, how is it they go down in value before they are even sold? And do they go down even more when the day starts? Or are they sold the minute the opening bell rings? When are they or did they get sold and anyone knows that their value has gone down. I don’t get it.
Bernanke does't strike me as the type to drop rates just for the market. His reaction to the next big economic report, and of course, the Fed meeting on the 30th, will be telling.
Perhaps the markets are sending him a warning shot.
I’ve been in 30% Cash for some months now, went to ~60% Cash last week.
Waiting for some bottom and will get back in to about 70% Stocks.
REMEMBER: It may go up after a bit, but it WILL retest the Lows !!
I understand Henry Paulsen was on CNBC at 8am. Anybody catch that? If so, what did he say?
And finally, the indexes the futures are based on can be calculated mathematically from the overseas trading of their respective stock elements, whether the futures are trading or not.
I'm staying the course.
sw
AP >>”Dow industrials are set to drop 500 “
http://news.yahoo.com/s/ap/20080122/ap_on_bi_st_ma_re/wall_street
sw
The Fed just lowreed the discount rate by 75 Basis Points, .75%......
http://corner.nationalreview.com/
Take Charge, Central Bankers [Larry Kudlow]
There’s a global stock market tsunami gathering force. It may hit U.S. shores very hard this morning.
Much of this is panic over a U.S. recession threat that has yet to clearly materialize. The world sell-off also vastly overestimates loan and credit problems among international financial institutions.
In any event, world central banks should immediately reduce rates and add liquidity first thing in the morning, no matter what the time-zone.
Fed head Ben Bernanke should have cut rates 50 basis points last week. He should do it first thing this morning. Then cut rates another 50 basis points on January 30.
Importantly, central banks must work together and cut rates together. They must coordinate to avoid major financial consequences. They must show investors, financiers, and business people that they are in charge.
In this deflationary environment, plunging commodities, stocks, and credit-risk-free government bond yields are all signaling central bankers to take charge. That means lower rates and more money creation.
Pronto.
01/22 07:32 AM
FWIW, I’m not selling, just riding out the correction. In my experience the market always recovers. You don’t lose unless you sell. That’s just my opinion.
I submitted my stop orders this morning. I should do OK.
Me either - I have enough prollems with the todays and nows.
Several months ago, I moved everything in my 401K into three J.H. funds; Energy, Natural Resources and Utilities. Something everyone needs regardless of the economy(I hope). Today should be a real test on whatever any of us have picked.
Now the market is looking for ANOTHER 75 Basis Points...
Just reported that the Fed cut by 3/4 percent.
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