Posted on 02/09/2018 8:26:01 AM PST by WilliamIII
The whole market can be brought down by a bunch of fools speculating on a gimmick fund? I thought the market fundamentals would be a bit more grounded than that. How does a small number of people losing their shirts on essentially a casino bet impact the economy as a whole?
I know. But then his wife, their church, kid’s education, friends. All play a role and I know you can’t control other people’s thinking.
The only parallels:
* a hated Republican president
* at least one Soros is still alive
Yellen inflated the market.
She also DELAYED the right sizing of the market by intervening with her QE.
So, we have the market going back 8 years and finishing that right sizing and it’s deflating at the same time.
The normal curve I looked at says that it would have grown at a regular pace to about 21,000 by this time without all of her hocus pocus. That was just eyeballing it and not doing the math. The range was about 18,000 to 23,000.
This is actually good for the economy, in my opinion. Nothing like a cup of reality early in the morning to start your day.
I didn't like her, but QE was mostly over before she took over.
I voted for both Bushes ...twice each! I think they’re traitors now!
Me too. Really sad. GW did defeat the Democrats for Texas Gov and I will always be happy about that. But lately? “My brother from another mother” is too creepy.
She was the one selling all those bonds they accumulated
The market is nothing more than a crap shoot game. If it goes down you lose money and can never recover if it goes back up.
No - there are no parallels here at all.
The markets crashed in 2008 because the the mortgage backed securities that the government propped up collapsed in value. Because of that the big banks had to sell stock to cover the spread which caused money to be pulled out of the market which started a further sell off which depressed the stocks the banks held further weakening their position and making them insolvent and forcing their shut down.
In this case the mortgage securities are still FINE - the markets are just seeing a pull out of cash. After a massive run up of the market people weee going to take their money out and lock in their earnings.
There’s some panic selling, obviously as people are gun shy and paranoid after the last 8 years. Also we have lots of individual traders with E*TRADE and such so wide swings like this shouldn’t be unexpected.
The percentage change is the important point not the raw # and while the Dow had its BIGGEST DROP EVAH it only dropped 2% in value compared to 20% in one day back on black Monday in the 80s
It’s colatile for sure and Trump is going to have to come out to reassure the markets at some point.
When the financial SHTF Yellen and Bernanke will be in Tel Aviv before the sun sets on Sodom by the sea (San Francisco).
Nothing about where we are today is anything close to 2008.
The market is making up for nearly 16 years of slow growth and 8 of being damn near crushed by bad policies...
It probably will get too exhuberant before it pulls back to reality, but there is NOTHING even close to the 2008 situation.
Total BS to get clicks and eyeballs
The market ran up because of excessive exuberance and is now calming as the exuberance wears off.
The fact is, if you were smart enough not to sell, especially at the bottom, nothing happened.
A YAHOO article.. same as the Wash Post or NY Slimes... ALWAYS leaning FAR LEFT.
I had a Professor who explained “The Rational Man Theory Of Investing” to us graduate students.
He then told us to forget it because investors don’t act in a rational manner.
Who would you recommend that you can trust, when reading an article?
The sector that suffers the worst with the current drop is the energy sector.
Trump’s attempt to reignite offshore drilling has been met w/just about every coastal governor taking action to stop it.
So maybe Trump’s election ignited hope, but the reality of the swamp is dashing it to pieces.
These are the guys who said the market would crash if Trump was elected President.
Yes, QE started to unwind in October 2017.
“...The fact is, if you were smart enough not to sell, especially at the bottom, nothing happened....”
Very good point. Fear and greed drive it. Folks let fear set in at the bottom and then bail out losing a pile. The only ones that get hurt on a roller coaster ride are those that try to jump off. When a person sees a big old 15-20% loss in their investments, that fear sets in and they want to “jump off”, and that’s EXACTLY what these POS libs want us to do....”throw gas on the fire” I do find it emotionally frustrating to watch at times, but personally, I just let it ride it out as it’s not money I need right now. I believed in the sound fundamental value of what I invested in at the time and I believe in them now. Only the greed/fear thingy has changed, not the basic investment fundamentals.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.