US stocks sink; Dow dives 225 points on emerging-market concerns

cnbc.com ^ | January 31, 2014 | Kate Gibson

[John W]

U.S. stocks tanked on Friday, with investor sentiment slammed by increasing worries about trouble in emerging markets.

"This is more of a geoeconomic kind of thing. The Friday dates plays into this, the end of the month plays into this, and it does appear emerging markets, one by one, will need to take additional central bank action over the next few days," said Jim Russell, senior equity strategist for U.S. Bank Wealth Management.

[Starboard]

What, you’re not going to happy with a “guaranteed” 3% return on your hard earned money? /sarc

[Red in Blue PA]

You have to buy after a huge drop when everyone wants out; and likewise, selling when everyone agrees it is a foregone conclusion that the market will go up 30% every year. (We are close to the latter now). Personally, if it starts to fall here, there are going to be a lot of technical support lines broken so it will not make sense to buy until it has fallen at last 1-2000 more points. This could be ugly.

[rightwingintelligentsia]

Not sure/yes, up to 5%.

[Red in Blue PA]

Fscebook is trading at 20 times sales. That is like what we saw in 2000.

Insanity.

[SkyPilot]

http://www.foxbusiness.com/markets/2014/01/31/stock-futures-slide-as-global-concerns-mount/>

They take your money and smile at how naive the masses are.

The Fed central banksters have move decimal points on computer screens. The US petro-Dollar is about to crash.

People I meet show me their IRA print out and tell me how much US Dollars they will "get" per month in their retirement years.

Really.

Get ready.

[nascarnation]

I agree with you 100%, but it’s so dangerous to bet against Friends of Baraq.
To me Tesla looks like the most slam dunk short ever but I wouldn’t touch that trade.

[Starboard]

This could turn into a significant correction if 401k holders and foreigners (with equity investments in the U.S.) start heading for the exits. If they panic out and start to seriously turn the decline into a tidal wave, the Fed will start “pulling levers” to stabilize the market. Just my opinion.

[US_MilitaryRules]

And I am one who stopped shopping at amazon because of them charging tax for commifornia. Goodby amazon.

[MrB]

I got a “tickle” a couple of days ago and pulled my IRA back to nearly all cash for the ride down.

Left some in precious metal derivative funds, though.

[SkyPilot]

You are a smart man. Hold on. Here it comes.

[Wyatt's Torch]

S&P is up 160% from the low in March 2009 to today. That’s a whole lot of return you missed out on. If you skipped all of that then yeah I would stay out for now.

[grania]

I'd think some profit taking is inevitable at the beginning of 2014. Capital gains taxes on profits don't have to be paid until April 2015. And what about individual investors?....I'd think paying high home heating bills is going to cause people to use some stock market money to pay them.

As far as the bogus money the feds have used to prop up the stock market? It'll disappear into thin air, which is where it came from.

[Starboard]

there are going to be a lot of technical support lines broken...

***************
A key support floor to watch is 1750 on the S&P. Breaching that could lead to a breakdown.

[Stentor]

If they panic out and start to seriously turn the decline into a tidal wave, the Fed will start “pulling levers” to stabilize the market. Just my opinion.

Panic might be an excessive way to describe caution. Nothing wrong with taking out most of the profit. "The problem with bubbles is that they force one to decide whether to look like an idiot before the peak, or an idiot after the peak. There's no calling the top." Mark Faber seems the latest person to say this. Don't know the originator.

[Starboard]

I’d think paying high home heating bills is going to cause people to use some stock market money to pay them.

*********
This will also adversely impact the economy as it reduces disposable income that could otherwise have been spent on retail items. Many people are going to see heating bills that are double what they normally pay in winter.

[Red in Blue PA]

You can only see the top in the rear view mirror.

Anyone who claims otherwise is simply lying.

That being said, it is almost more noteworthy to note the psychology of people than anything else. When the taxi driver is giving out stock tips, that I a time to get out. When every analyst agrees the market is going up for the 6 year in a row, that is a time to get out.

[jjsheridan5]

Some fodder for the more conspiratorially minded:

Third Banker, Former Fed Member, "Found Dead" Inside A Week

[Starboard]

There was too much complacency in the market IMO. Last year’s returns were extraordinary and a huge “gift” for many people investing for retirement. However, when people sees those big returns dissipating complacency can quickly give way to fear, especially in cases where retirement savings are barely sufficient to meet long term financial needs. A 250 point drop today would spook a lot of people.

[Stentor]

When the taxi driver is giving out stock tips, that I a time to get out.

There was a lot of talk about silver at the flea market in 2012. I can't hold my breath long enough to retrieve mine. The grandchildren are good swimmers.

[Salvation]

BTTT!