What happened to the TSX this morning

[My Dream]

it's at 13,176.21 down -228.25. I've been following it for about 6 months now since I've been trying to figure out this whole investment world, and I don't think that's normal.

[bssc]

Dow is down too. Its all short term. If anyone could figure it out, they would be rich.

[kcowan]

Some large investors felt that the Shanghai market was overvalued. Sales there generated some programmed trading which caused a sudden large decline. Other market makers were nervous and bailed.

Will this be the start of a major correction? I dunno. Where will the money go?
Real estate? No
Bonds? Don't think so.
Gold? Maybe...

[Brat]

The Chinese are worried that their stock market has over-heated. They are talking it down and maybe tightening in other ways.

[Poundkey]

Take a deep breath and relax. Hop in your 75 and cruise for a while......I'm about to do the same in my 74. Nice day out.... 8)

[eridanus]

The Yen carry trades are about to unravel, too. Watch the panic.

[Sam]

Scary! Overall, the market (sp500, dow, and nasdaq) has been down for several days now.

[camberiu]

Time to go shopping.

[audreyh1]

OK - it looks like the S&P finally made the 2% correction from recent high it has avoided for a very, very long time. It's about time. (It depends on if we close down here).

This is NOT SCARY folks! Markets have been at long time highs for months on end and we finally get a wee bit of a sell off? 2000-2002 - now THAT was scary!

It's not time to go shopping yet either. At least not for me. I like to see at least a 5% correction if not 10%.

Audrey

[d]

watch out Audrey ... i find that i agree with you much too often ... that's a bad sign for you. i found last week's s&p high to be a "selling opportunity" and i'll be rebalancing again if we get something approaching a 5% correction, but what we've seen so far is nothing to panic about.

no doubt "submerging markets" will take a hit here ... yesterday decided to not trim some

[Bikerdude]

Quote:

Originally Posted by audreyh1 It's not time to go shopping yet either. At least not for me. I like to see at least a 5% correction if not 10%. Audrey

I could not agree more.

[eridanus]

Argh!! What if it goes down 2% tomorrow and 2% Thursday?!? I think we're in for a spiral down into the abyss.

I'm out. I'm going 100% bonds.

[Spanky]

Quote:

Originally Posted by eridanus Argh!! What if it goes down 2% tomorrow and 2% Thursday?!? I think we're in for a spiral down into the abyss. I'm out. I'm going 100% bonds.

Would cash be better?

[eridanus]

Quote:

Originally Posted by Spanky Would cash be better?

Oh, maybe you're right.

Ahhhhhhh!!! Arghhhhhh!

[Running_Man]

Quote:

Originally Posted by kcowan Will this be the start of a major correction? I dunno. Where will the money go? Real estate? No Bonds? Don't think so. Gold? Maybe...

This is a misconception - the money does not go anywhere for 98% of the people, it merely disappears. What prices will do after a decline is determined by the amount of funds able to shift into the asset class that is declining and the amount of new funds being created available for investment.

[W2R]

Quote:

Originally Posted by eridanus Argh!! What if it goes down 2% tomorrow and 2% Thursday?!? I think we're in for a spiral down into the abyss. I'm out. I'm going 100% bonds.

Don't you hate it? I do, too. I lost a little last May or June, when the market dipped. That is because I went from 75% stocks to 60% as it was headed downwards. Afterwards I felt stupid. I left it there, though, because I know it could happen again and apparently I don't have the guts to stick it out with 75% stocks.

We work all of our lives for predictable paychecks, plodding along, and then when we have money to invest, we expect ourselves to adjust nicely to random wild vagaries of the market. There's something wrong with that picture. Maybe I can convince myself that this would be a great opportunity to buy. (sigh)

Time to me to re-read Bernstein's Four Pillars and Swedloe's book. Not that I don't practically sleep with them these days.

[d]

Quote:

I'm out. I'm going 100% bonds.

Quote:

Would cash be better?

b33v3r ch33z3 !!

i remind you:

Quote:

when the market's riding high that's the time to sell, not buy when the market's gone to hell that's the time to buy, not sell

[Sam]

Quote:

Originally Posted by audreyh1 OK - it looks like the S&P finally made the 2% correction from recent high it has avoided for a very, very long time.

Audrey, can you elaborate? I'm quite sure S&P went through a correction of more than 2% last year in May or June.

[Running_Man]

Quote:

Originally Posted by d b33v3r ch33z3 !! i remind you: when the market's riding high that's the time to sell, not buy when the market's gone to hell that's the time to buy, not sell

So this means you suggest selling now while the market is high? Or that a 2% decline is an indication the market has gone to hell and now is the time to buy.

[Hamlet]

I'm 34. My portfolio is much, much bigger than the last time I had to ride out a big correction (2002). It didn't faze me (much ) then, but I'm wondering if I have the stomach to go thru a 25% correction now that there is another zero on the end of the numbers. We will see

Note-- I am 100% equities (I have a fair amount in REITs though).

Quote:

Originally Posted by Want2retire Don't you hate it? I do, too. I lost a little last May or June, when the market dipped. That is because I went from 75% stocks to 60% as it was headed downwards. Afterwards I felt stupid. I left it there, though, because I know it could happen again and apparently I don't have the guts to stick it out with 75% stocks. We work all of our lives for predictable paychecks, plodding along, and then when we have money to invest, we expect ourselves to adjust nicely to random wild vagaries of the market. There's something wrong with that picture. Maybe I can convince myself that this would be a great opportunity to buy. (sigh) Time to me to re-read Bernstein's Four Pillars and Swedloe's book. Not that I don't practically sleep with them these days.