Dow 8000?

Jonathan Hoenig at Smartmoney.com had these sobering words to say:
...there are virtually no equities showing strength at present. With such widespread weakness, one could easily fashion an argument that stocks are oversold and due for a bounce. Still, markets tend not to decline sharply because they're poised to thunder up to new highs. There's been some serious damage done that will take, at minimum, months to rebuild.
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No Signs of End to Real Estate, Banking Crises (Citigroup, Bank of America, J.P. Morgan, Countrywide Financial, Washington Mutual) | SmartMoney.com

If he's right, then Dawg52 will need to keep his spirits up (so to speak). On the other hand, my own crystal ball is still not functioning at all well. I would be perfectly happy if we now proceeded to have a nice runup.
 
Want2retire said:
Jonathan Hoenig at Smartmoney.com had these sobering words to say:

No Signs of End to Real Estate, Banking Crises (Citigroup, Bank of America, J.P. Morgan, Countrywide Financial, Washington Mutual) | SmartMoney.com

If he's right, then Dawg52 will need to keep his spirits up (so to speak). On the other hand, my own crystal ball is still not functioning at all well. I would be perfectly happy if we now proceeded to have a nice runup.
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Easy for him to say, he runs a hedge fund that buys non-correlated assets like precious metals and foreign currencies....he NEEDS the equity markets to continue on this path or he won't be finding opportunities.............:D
 
BTW, Dow 8000?? That's pretty funny.........:)
 
so far the day is pretty bearish, but 3pm is when the institutional money starts flowing and we'll see what happens. so far i'm glad i didn't sell my QID out of emotion
 
"NEW YORK (CNNMoney.com) -- Stocks rallied Tuesday afternoon as investors welcomed news that the Federal Reserve will lend up to $200 billion to banks and lenders as a means of loosening up tight credit markets."

Seeing as our country is 9 trillion in debt, where does the FED get the 200 billion to lend? Do they just print more? I really don't know how it works.
 
going to have to roll over into some C or just be lazy and buy XLF for a few weeks
 
Razor said:
"NEW YORK (CNNMoney.com) -- Stocks rallied Tuesday afternoon as investors welcomed news that the Federal Reserve will lend up to $200 billion to banks and lenders as a means of loosening up tight credit markets."

Seeing as our country is 9 trillion in debt, where does the FED get the 200 billion to lend? Do they just print more? I really don't know how it works.
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apparently they are lending treasuries that can be sold for cash and taking AAA rated paper as collateral. until now the Fed would only take real bonds as collateral. Treasuries, fannie, etc. now they are taking private mortgage bonds that are AAA rated even if they have a 40% delinquency rate. and instead of telling banks to repay in 28 days, it's now whenever you want to. supposedly BSC was close to going belly up and it scared them

one of my blogs talked about it this morning.

calculated risk or the big picture. both are good and written by finance industry pro's.
 
The DOW is looking good today. I hope it can last for more than one day.
 
Razor said:
The DOW is looking good today. I hope it can last for more than one day.
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The market really is a big boys club these days like gambling at the high rollers tables in Vegas or Atlantic City. The little guy should not think its a safe place right now.

The people with money will always gamble even during bad patches in the economy.

It really makes no sense for the market to be up except its all about taking profits then buying then when it drops 400 points later in the week it was because the people with huge dollars bid up a stock then sold it when they made some money, back and forth.

Legal Gambling.

Truckers want to strike thousands are being foreclosed on 2 fools, 1 old fart want to be president, one still in the white house, gasoline headed toward 4 dollars a pop, Iraq, bin laden still free, food prices headed up up and away yea its all good.
 
Razor said:
The DOW is looking good today. I hope it can last for more than one day.
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I love it! At least for a day, it seems like all is well once again.

It would be wonderful if this lasted for the rest of the week.
 
Want2retire said:
I love it! At least for a day, it seems like all is well once again.

It would be wonderful if this lasted for the rest of the week.
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I would rather see a slow steady rise than these big daily swings. Tomorrow the profit taking might just push it the other way. Do you look like your picture? I keep thinking that's who I am talking to.
 
absent "a slow steady rise" i'm quite happy to take a big positive swing
 
Razor said:
I would rather see a slow steady rise than these big daily swings. Tomorrow the profit taking might just push it the other way. Do you look like your picture? I keep thinking that's who I am talking to.
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I am with you 150% about the slow, steady rise rather than all this volatility. I rebalanced my TSP this morning (always do on the 1st), and it will take 2 days for them to get around to it. So, I hope tomorrow's plunge isn't too deep, since I am moving 2% from international ("I fund") into government treasuries ("G Fund"). Obviously this is not so much an attempt at market timing as it is part of my grand plan, which has me 100% in G before ER.

My avatar is a German model/actress named Eva Habermann, and was one of the default avatars on the old website. It's not a photo of me! But it is a photo of what I wish I looked like.

In reality, I am almost 60, with (uncolored) gray/white unmanageable hair, blue eyes, tall, with a dumpy "59-year-old" style body. Oh, and awkward to boot, and with glasses. Constantly battling weight.

But Frank (bless his heart, he always knows what to say!) says that I look JUST like the avatar. :2funny:

You, of course, always post on the forum wearing a yellow helmet and green football jersey...
 
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Want2retire said:
I am with you 150% about the slow, steady rise rather than all this volatility. I rebalanced my TSP this morning (always do on the 1st), and it will take 2 days for them to get around to it. So, I hope tomorrow's plunge isn't too deep, since I am moving 2% from international ("I fund") into government treasuries ("G Fund"). Obviously this is not so much an attempt at market timing as it is part of my grand plan, which has me 100% in G before ER.

My avatar is a German model/actress named Eva Habermann, and was one of the default avatars on the old website. It's not a photo of me! But it is a photo of what I wish I looked like.

In reality, I am almost 60, with (uncolored) gray/white unmanageable hair, blue eyes, tall, with a dumpy "59-year-old" style body. Oh, and awkward to boot, and with glasses. Constantly battling weight.

But Frank (bless his heart, he always knows what to say!) says that I look JUST like the avatar. :2funny:

You, of course, always post on the forum wearing a yellow helmet and green football jersey...
Click to expand...


why are you buying t-bills when the yields are so low and there is a risk of the price crashing due to increased inflation?
 
al_bundy said:
why are you buying t-bills when the yields are so low and there is a risk of the price crashing due to increased inflation?
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Sorry if I was misleading. I didn't phrase that correctly.

The G Fund is not t-bills, is unavailable outside the TSP, and has done well historically during periods of high inflation, such as the 1980's. In 1990, when the CPI-U was 5.4%, the G Fund return was 8.9%, for example. You can read about it here.
 
Razor said:
Anyone know why the big jump today?
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Supposedly "Wall Street cheered" due to the plan to further regulate the financial sector.

The real reasons? I have no idea. Maybe people are beginning to think that the subprime mess is taken care of. (fat chance! :rolleyes:)
 
Want2retire said:
Supposedly "Wall Street cheered" due to the plan to further regulate the financial sector.

The real reasons? I have no idea. Maybe people are beginning to think that the subprime mess is taken care of. (fat chance! :rolleyes:)
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the huge writedowns are making people think we are past the halfway point and the writedowns will continue but not be significant
 
Razor said:
Even if it's all gone tomorrow?
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up is good; down is bad. yes, even if it's all gone tomorrow, a positive today is better than a negative today. what happens tomorrow is largely independent of today (though i would indeed expect some "profit taking".)
 
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