Stock Market Correction?

[farmgirl]

Anyone watching the stock market numbers? They've taken a 325 dive so far on the Dow. Are investers finally waking up to certain realities? Or is this just business as usual?

[tml1432]

I'm interested in the ideas as well...

[Beeferoni]

It's Friday...the market has had a very good month...investors are engaging in a little profit-taking.

[Issachar]

Stocks pulled back sharply Friday as lackluster profit reports, record high oil prices and a warning from Caterpillar that the housing downturn was spreading to other parts of the economy raised fears about the economy’s long-term strength. The Dow and S&P 500 were both off roughly 2 percent. The drop came on the anniversary of the Black Monday crash 20 years ago. http://biz.yahoo.com/ap/071019/wall_street.html

Issachar

[Bernardd]

Profit taking. They'll be back on Monday...or Tuesday.
Watch Google

[jds6958]

It may be profit taking...Monday will decide short term where we are going as an economy...I hedged my bets that next week will be bullish. HOWEVER<

Eventually I believe that the US will experience hyperinflation.

http://en.wikipedia.org/wiki/Hyperinflation

The only way to prevent this train wreck would be political suicide for any politition. Which is why I think it is unavoidable. Hyperinflation is the only way to mitigate the current deficit in the US by basically making the dollar worthless, then the debt would be managable, then recover from there.

I have placed 25% of my assets in gold...http://www.bullionvault.com If you are interested, this link is a means to invest in gold outside of the US. This is key because the US would likely outlaw investing in gold during hyperinlation.

Hyperinflation would be kickstarted by other countries withdrawing investment in the US dollar...I believe that has already started. I believe the dominoes have started to fall towards a call for a worldwide currency imho.

>>>$69 BILLION Capital Outflow in August: Dollar is DUMPED by foreign entities big time...

Treasury International Capital (TIC) Data for August

Treasury International Capital (TIC) data for August are released today and posted on the U.S. Treasury web site (www.treas.gov/tic). The next release, which will report on data for September, is scheduled for November 16, 2007.

Net foreign purchases of long-term securities were minus $69.3 billion.

* Net foreign purchases of long-term U.S. securities were minus $34.9 billion. Of this, net purchases by foreign official institutions were minus $24.2 billion, and net purchases by private foreign investors were minus $10.6 billion.

http://www.treas.gov/press/releases/hp611.htm

As a point of interest:

Treasury International Capital (TIC) Data for July

Treasury International Capital (TIC) data for July are released today and posted on the U.S. Treasury web site (www.treas.gov/tic). The next release, which will report on data for August, is scheduled for October 16, 2007.

Net foreign purchases of long-term securities were $19.2 billion.

http://www.treas.gov/press/releases/hp560.htm

Treasury International Capital (TIC) Data for June

Treasury International Capital (TIC) data for June are released today and posted on the U.S. Treasury web site (www.treas.gov/tic). The next release, which will report on data for July, is scheduled for September 18, 2007.

Net foreign purchases of long-term securities were $120.9 billion.

CONCLUSIONS:

A capital inflow of $120.9 Billion in June, to only $19.2 Billion in July to a NET Capital OUTFLOW of $69.3 Billion in August tells me the GOOSE is COOKED for the US: a collapse of the US Dollar is imminent as the foreign holders are rushing to the exits and a severe recession is on the way...

[DavidNR]

How about investing in global mutual funds? Or foreign company's stocks?

Or... don't buy anything in times of inflation. Prices will have to come down... Under global warming, we won't need to have much in the way of cold weather clothing or heating oil. Learn to sweat and the hot days of summer won't even need air conditioning. Eat on the cheap and you'll survive. Walk.

[MoreThanReady]

There is also the fact that Mutual funds must sell off their losing trades by October 25th (I think, not sure exact date), for tax reasons.

If you look back over the last 10 years, you will see that the DOW has gone down this week in like 7 of the last 10 years.

14000 is a soft ceiling right now for the DOW, so in the short term, any time the dow hits 14000, investers are going to be looking for any reason to take profit off the table. High oil prices, profit warnings, war talk with Iran, etc.. all add up to reasons to take some profit off the table if you got it.

If you are investing for the LONG term, there is nothing to worry about (assuming that 1. The rapture takes place before then, or 2. Hillary doesn't win the election next year). If you plan on retiring in the next 12 months, I'd highly recommend getting into BONDS and overseas markets and living on the interest and leaving little in the U.S stock market.

And don't forget, 'traders' make money when the market goes up and down.
I had a practice options trade this past week that made 150% return off the stock going DOWN (true it was only on paper, but I'm just learning and practicing options trading right now).. Short sellers did really well this week.

BULLS and Bears make money, HOGS get killed and eaten :)

[Bernardd]

And don't forget, 'traders' make money when the market goes up and down.
I had a practice options trade this past week that made 150% return off the stock going DOWN (true it was only on paper, but I'm just learning and practicing options trading right now).. Short sellers did really well this week.

BULLS and Bears make money, HOGS get killed and eaten

Interesting how our education system fails to address how to use the stock market.

If you don't mind, who do you use for your brokerage account?

[MoreThanReady]

Interesting how our education system fails to address how to use the stock market.

If you don't mind, who do you use for your brokerage account?

For Options I'm using OptionsExpress, a friend of mine is using TradeKing, because they are a little cheaper on the options trades.

For a straight stock trades, I have been using E-Trade.

We were cheering for the market downturn this week.. We are cheering for another 5% down this coming week. Better a soft decline than a sudden crash :)