Market Correction is Official

[Sam]

It's official for me, regardless of the definition. Negative 1% from positive 11% in 45 days! @#$%!

 

[roadtoharvard]

Sorry to those that are FIRE but like Bernstein said i'm down on my hands and knees wanting to pick up some stuff at fire sale prices.

 

[ERD50]

Sorry to those that are FIRE but like Bernstein said i'm down on my hands and knees wanting to pick up some stuff at fire sale prices.

Hope you did it yesterday, the feds just cut rates and looks like the market will open higher.

-ERD50

 

[Bigritchie]

I think this is option day, so the market may finish down today anyway.

 

[al_bundy]

Hope you did it yesterday, the feds just cut rates and looks like the market will open higher.

-ERD50

the fun starts at 2pm most days, but so far it's trending lower

maybe someone smarter than me can answer this, but what is the fed cut going to do other than lower the borrowing costs of those trying to deleverage

will anyone really buy the toxic mortgages and will anyone really lend money via ninja and liar loans again?

i remember the fed cutting rates in 2001 - 2003 and the market fell almost every single time after the rate cut

 

[twaddle]

The fed didn't cut the fed funds rate, they just reduced the credit window rate from 6.25% to 5.75%.

Even a cut in the fed funds rate won't have much of an impact on housing. The credit crunch is due to tighter underwriting. Housing will still tank followed by consumer spending.

 

[haha]

Even a cut in the fed funds rate won't have much of an impact on housing. The credit crunch is due to tighter underwriting. Housing will still tank followed by consumer spending.

This is how it looks to me also. Which should cause a recession in due course.

The Fed and treasury and administration will be doing everything they can do to keep the stock market flying in spite of reality. So far, they have been pretty good at that task.

Ha

 

[zedd]

Wow thats weird. This thread popped up today.
Its from '07 !

 

[COcheesehead]

History rhymes

 

[audreyh1]

Wow thats weird. This thread popped up today.
Its from '07 !

How did it "pop up". Your's is the first post since 2007. Did you do a search or something? Threads don't just pop up on their own.

 

[target2019]

How did it "pop up". Your's is the first post since 2007. Did you do a search or something? Threads don't just pop up on their own.

On my tablet with E-R app, there are two related threads presented at end of page. Maybe that?

 

[audreyh1]

Oh, OK, I’ve never paid attention to the “similar threads” box. It does show the last post date.

Thanks for explaining.

Pretty funny seeing a 2007 Market Correction is Official title now knowing that was only the beginning of a really bad bear market.

 

[MichaelB]

Wow thats weird. This thread popped up today.
Its from '07 !

Pretty funny seeing a 2007 Market Correction is Official title now knowing that was only the beginning of a really bad bear market.

Coincidence? Perhaps. Or, possibly, a harbinger of what’s to come, a premonition of what could be, a foreboding of what the future holds. Oh my.

 

[HadEnuff]

Coincidence? Perhaps. Or, possibly, a harbinger of what’s to come, a premonition of what could be, a foreboding of what the future holds. Oh my.

nope. I think it's an augury of future events, myself.

 

[atmsmshr]

Oops I corrected it was 29% was my prediction 37% was the amount it was going to drop from the top - and was derived as an average of the first year of bear market returns of severe bear markets. Naturally actual results may vary but I do feel this is the start of a severe recession.

As I just heard on the radio, part of the problem is liquidity use to be cash on hand it has become available lending on hand. Housing starts have dropped as announced today to the lowest level in 10 years. Walmart the other day stated that they are noting their clientel (annual incomes less than 40K per year) have an inablity to make purchases at the end of the month. This is not just a subprime problem, I see where Countrywide has secured 11.5 Billion in bank loans to service it's mortgage business and their commercial paper was downgraded. Countrywide has financing commitments from banks of 285 billion - many of which the banks can get out of - but I would not want to be lending Countrywide money. Again I do not see these items as leading to a buying opportunity. This is not the prospective selling of September 2001 where the terrorost attacks led to fear of what would happen to the economy - this is the economy and what will it do to economic activity.

Could easily get some really sharp nice rallies but over the next 12-18 months I would expect the market to continue to decline in unison with economic activity.

Running man should change his screen name to Mr. Wizard - his crystal ball was spot on before the credit markets panicked.

 

[ERD50]

Oh, OK, I’ve never paid attention to the “similar threads” box. It does show the last post date.

Thanks for explaining.

Pretty funny seeing a 2007 Market Correction is Official title now knowing that was only the beginning of a really bad bear market.

Yes - and now I wish the "quotes" had the date attached - now it's confusing if the quote is related to the 2007 cycle or the current one. But very interesting.

-ERD50

 

[easysurfer]

I for one want a good market crash rather than the whiplashing back and forth.

Regardless, I plan is to stubbornly using my target AA as a guide no matter what happens.

 

[gstillson]

I for one want a good market crash rather than the whiplashing back and forth.

Regardless, I plan is to stubbornly using my target AA as a guide no matter what happens.

No, that whiplash is where you can make money.

 

[Dtail]

I for one want a good market crash rather than the whiplashing back and forth.

Regardless, I plan is to stubbornly using my target AA as a guide no matter what happens.

I am with you but just hit the 20% bear market level and everyone can say that is the end of the bull market and take out that negative reference.

 

[Chuckanut]

Here is one person's view of why we are seeing such volatility in the market:

https://humbledollar.com/2018/12/pu...xqOuHXilCt_SJ4EPvHb13am0g1EThs7Vold41ybYwYHR4

We’ve long seen this sort of momentum in stock prices. What’s changed? An increasing number of investment firms have launched funds to take advantage of this momentum effect. These momentum funds scour the market, looking for stocks that are displaying strong directional moves. When they find them, they effectively jump on the bandwagon, buying stocks that are going up and selling stocks that are going down. While it’s difficult to quantify, these momentum funds amplify the market’s ups and downs by bidding up stocks that are already going up and putting downward pressure on shares that are already headed lower.

 

[NYEXPAT]

No, that whiplash is where you can make money.

+1