Anyone else buying today?

travelover said:
I have not contributed to this year's Roth. May be an opportunity. :cool:
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+1, zero till now.

Over the weekend when I looked at the PE ratio for the S&P 500 index and Shiller PE10 index , I thought the overall market was still very overvalued, compared to historical norms. Even if the S&P 500 dropped by 50 points today it would be overvalued but by less.
 
Absolutely bought today. I got up in early am and saw that the shanghai had dropped 8.5% before the opening bell. So I put a few limit orders at ridiculous prices, and snagged a few bargains. Overall today, I put in $72K to shore up tech, healthcare, and financial sectors.
Caught AAPL @ 96.50 during the early freefall. It was down as low as 91.50.

The early morning plunge was offering unbelievable discounts.
I still think there's more to come. This isn't going to be shaken off very quickly.
 
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Chuckanut said:
Wake me up when the market is down 25% and I might consider buying.
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Yep, I agree. This is not going to be over for a while yet. As I've said in some previous posts, I think this market drop has been overdue for quite a while now. The U.S. Fed (and also other govt's in Europe, Asia) have been artificially propping up global markets for several years now, with cheap money (QE 1,2,3, etc.). The underlying economies have, for the most part, simply not been strong enough to justify the rise in stock prices we've seen over the last 4-5 years. The bubble had to pop at some point, and I think the catalyst for this pop was China. This quote from the article linked below summarizes it pretty well, I think:

"The immediate cause of Monday's wipeout was a lack of action over the weekend by the People's Bank of China to unveil fresh monetary policy easing in the form of an interest rate cut and/or a reduction in the so-called reserve ratio requirement, which dictates how much deposit money the banks must hold. Action is being demanded as Chinese economic data raises fears of a slowdown, stock market volatility intensifies despite aggressive efforts by Beijing to stop it, and everyone worries about the uncertain implications of a recent devaluation in the yuan.
With all that piling up and the threat of a September rate hike from the Federal Reserve still on the table, traders stampeded for the exits."

 http://news.yahoo.com/troubling-truth-revealed-stock-market-214700529.html


 
I was hoping for a dead-cat bounce so I could get some more cash.

Maybe this dead cat just goes "Splat" and does not bounce. :)

dead-cat-bounce.png
 
On the way home tonight from a quick (and inexpensive) dinner with my DW, she quietly asked me if we lost money in the market today (she is not a market follower). I quietly said yes and we need to continue to focus on LBYM for the time being...;)

Maybe that will slow the spending on the grandkids..(only hoping here).:blush:
 
On closer look, only the Shanghai index is down -4.6% as of this writing. Other Asian markets are up, such as Japan, HK, Korea, Taiwan, Australia, Singapore, etc... The trading day is still young so it is not certain how the markets will close, but there is hope.

The dead cat will bounce. Long live the dead cat.
 
I thought the dead cat bounce would have happened on Monday. My crystal ball must need to be sent in for a warranty repair.
 
aja8888 said:
On the way home tonight from a quick (and inexpensive) dinner with my DW, she quietly asked me if we lost money in the market today (she is not a market follower). I quietly said yes and we need to continue to focus on LBYM for the time being...;)



Maybe that will slow the spending on the grandkids..(only hoping here).:blush:
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Ah, very sneaky strategy Aja. Coincidently taking DW to a cheap place for dinner as the prop while mentioning LBYM to get your message across. :)


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At the end of the day, I always tell my wife how much we make or lose, and also how we do relative to the market.

She used to suggest that we sold out everything, back in the 2008-2009 crisis. She doesn't anymore.
 
aja8888 said:
Maybe that will slow the spending on the grandkids..(only hoping here).:blush:
Click to expand...
Hasn't help me any. Of course, with the slot car set I just put up in the basement, I'm also not setting the positive example. :)
 
Mulligan said:
Ah, very sneaky strategy Aja. Coincidently taking DW to a cheap place for dinner as the prop while mentioning LBYM to get your message across. :)


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Unfortunately, this strategy and effect has a short life. Once granddaughter shows up, they go shopping.:facepalm:
 
Spent the last of my spare cash this morning adding to one of my positions. I'm all in so let it roar! Now back to work to make more money to invest.
 
It seems there is still some fear in this market. 2008 is still fresh in some investors minds.
 
I bought some PEP and TGT in the last few minutes of today's session when the market dropped again. My fear level will increase if companies start cutting dividends, but for now I'll buy when I see some opportunities. I have plenty of cash to take advantage of this down market and have no illusion of being able to pick a bottom.


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Was listening to some pundit yesterday, and he said "watch the last hour of these markets for direction".

Probably pretty good advice during this volatile time.

I was thinking of buying, but I'm going to stick to my strategy of buying a chunk the first week of every month. So, I'm still a week away from buying. We'll see then.
 
In general too many investors buy much too early in a bear market, that is why in severe bear markets that valuations stay low quite a while after their end as portfolio drops consumed much of the investable cash. Many of the "bold" investors who invest when they feel valuations are in their favor are in before the lows are hit. They do perform very well in long rung just not as well if they had a little more patience. In general you can wait 18 months from the start of the bear market to begin investing.

My stock allocation dropped to 48% from 50% based on selling 2 stocks not meeting my criteria any more and the market fell when I only had one suitable replacement. For now I am not making any moves as the deflation from the commodities continues in it's death battle with the Central Banks of the world. It is possible the market will turn my 48% equity position to a 25% equity position, I certainly hope not but I will be very glacial in adding to equity positions over the next 18 months. On the other hand if the market were to take off from here I will be very happy with that outcome. I would recommend keeping equity position the same in general as it was before this drop began, I would recommend selling though any long term bonds and move into shorter term bonds unless your long term bonds are laddered. I still think US treasuries will be sold as a means of raising cash around the world putting them in a bear market no matter what happens to equity.
 
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