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Dow suffers biggest point drop in 5 months
marketwatch.com ^ | March 10, 2015 | Anora Mahmudova

Posted on 03/10/2015 2:12:31 PM PDT by John W

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To: hlmencken3

It is ALL about the US Dollar.

I’ve been saying this for a few months now.

The upward move in the Dollar has been significant and will likely continue.

I posted a chart on another FR thread earlier.

http://www.freerepublic.com/focus/news/3266321/posts?page=16#16

Note that between 1997 and up to 2000 the FED had been raising rates. In 2001 they began cutting rates. They cut rates so low that it contributed to the Housing Bubble which blew up in 2007-8.

So, the economy tanked and there is no more room to cut rates so they begin QE. The QE efforts worked to keep the Dollar from going up since a higher Dollar would hurt our US exports. Now that QE has stopped, our Dollar is going up.

They can’t cut rates because we are pretty much at zero now and if they raise rates then the Dollar will REALLY go up, and that will crush the market and virtually all commodities.

Keep in mind that the recent rally in the Dollar is happening as the result of a few things, weakness in the Eurozone, the end of QE and the “hinting” of a rate increase.

If the FED actually raises rates?

The money will flow into the US Dollar so fast your head will spin.


21 posted on 03/10/2015 3:34:55 PM PDT by Zeneta (Thoughts in time and out of season.)
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To: dainbramaged

That’s their choice. I have never lost a penny in the market. Never will.


22 posted on 03/10/2015 3:38:11 PM PDT by ExpatGator (I hate Illinois Nazis!)
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To: dainbramaged

And hopefully they are going to buy more and not get weird and sell cuz the sky is falling. That is one main reason that people end up poor is because they don’t use their heads.


23 posted on 03/10/2015 3:59:16 PM PDT by napscoordinator (Walker for President 2016. The only candidate with actual real RESULTS!!!!! The rest...talkers!)
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To: Zeneta; hlmencken3

In addition.

I would expect the FED to back off talk of a rate increase and possibly “Hint” that they may try another round of QE.

In order to do so they would have to talk down their recent comments about our economy being on the upswing and express concerns.

Take would be enough to SLOW the rising Dollar, but only QE/rate CUT would really stop the rising Dollar. And even that would only be temporary.

Personally, I would like to see another round of QE.

The pain of NOT doing another QE will be much greater than what it would take to get all that cash back.

IMHO, the only way out of this mess is for a massive roll back of regulations and a massive TAX CUT. And those things are not likely to happen under our current administration.


24 posted on 03/10/2015 4:04:00 PM PDT by Zeneta (Thoughts in time and out of season.)
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To: cuban leaf
There are a lot of people on FR that have caught the Gold Bug and see inflation everywhere. They rightfully see the FED's QE* efforts as inflationary, but the data tells a different story.

The CRB Index is the Commodity Research Bureau's index of major commodities. The index comprises 19 commodities: Aluminum, Cocoa, Coffee, Copper, Corn, Cotton, Crude Oil, Gold, Heating Oil, Lean Hogs, Live Cattle, Natural Gas, Nickel, Orange Juice, Silver, Soybeans, Sugar, Unleaded Gas and Wheat.

 photo big.chart CRB_zpsmzg6ctko.gif

25 posted on 03/10/2015 4:44:10 PM PDT by Zeneta (Thoughts in time and out of season.)
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To: John W

The Dow is artificially high because there are no other good investments. In addition, companies are buying back stock rather than expanding in this anti-business environment.

There will be a significant correction in the market this year. Diversify your investments, based on your age and expected retirement date. We survived 4 years of Carter. We will survive 8 years of Obama. Four years of Hillary or any other leftist? It may be time to retire overseas.


26 posted on 03/10/2015 4:48:54 PM PDT by neocon1984
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To: Zeneta
So, what you are saying is:

"WE'RE DOOMED!"

27 posted on 03/10/2015 7:01:34 PM PDT by Rodamala
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To: Zeneta

Yes. I see deflation.

Followed by inflation.

Followed by hyper-inflation.


28 posted on 03/10/2015 8:41:09 PM PDT by cuban leaf (The US will not survive the obama presidency. The world may not either.)
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To: napscoordinator
Good. Drop some more. The lower the better for most of us at this point in our lives. I want to buy as much stock for the buck I can. I cry when I see the dow rise and get excited when the dow falls. I would imagine most feel the same way as I do or should.

Wife and I are both retired and I'm all for the crash and having interest rates run back up. Moved much our stuff into safe havens which protect the principle with guaranteed growth (minimum 4.8% with larger is market ends up higher at end of a year), but our savings accounts could use a Carter type malaise...

29 posted on 03/11/2015 4:21:57 AM PDT by trebb (Where in the the hell has my country gone?)
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