Stock market is freaking out - something is going on

Discussion in 'The War Room' started by dragonsfly, Feb 5, 2018.

  1. dragonsfly '''''''''''''''''''''''''''''''''''''''''

    dragonsfly
    Joined:
    Oct 3, 2015
    Messages:
    2,991
    Likes Received:
    3,181
    More market turbulence: Dow drops sharply before bouncing
    by Matt Egan @MattEganCNN

    The ride on Wall Street keeps getting bumpier.
    The Dow slumped as much as 355 points just after the opening bell Monday -- then raced back almost to break-even. The Nasdaq slumped more than 1% but quickly turned positive.


    The back-and-forth action is an extension of the volatility that emerged last week because investors are worried about bond market turmoil.

    After the market started 2018 with a bang, last week was the worst on Wall Street in two years. The selling gathered steam on Friday when the Dow plunged 666 points, or 2.5%, its worst day since the Brexit mayhem of June 2016. Nearly $1 trillion of market value was erased from the S&P 500 last week.

    "You had a market that was overbought and ripe for something to undermine its tranquility," said Mark Luschini, chief investment strategist at Janney Capital.

    The nervousness spread to overseas markets on Monday. Major indexes fell 1% in Hong Kong, 1.5% in the U.K. and 2.5% in Japan.

    CNNMoney's Fear & Greed Index is now flashing "fear," underlining a major shift in market sentiment from a week ago when it was sitting in "extreme greed." The VIX volatility index jumped 7% on Monday after spiking 50% last week.

    Related: Good news for Main Street is freaking out Wall Street

    Investors' main concern is the selloff in the bond market. The 10-year Treasury yield, which moves opposite price, spiked to a four-year high of 2.85% on Friday. It's a dramatic swing from 2.4% at the start of 2018. Higher yields could make normally boring bonds look more attractive when compared with risky stocks.

    The U.S. economy looks very healthy right now. Friday's jobs report showed that wages grew at the fastest pace since 2009. That's a welcome shift by workers who have been dealing with anemic raises for years.

    However, Wall Street is starting to get worried that the "goldilocks" environment of slow growth and mysteriously low inflation may be ending. Stronger inflation would force the Federal Reserve to raise rates more aggressively than investors may be comfortable with. And more robust wage gains could eat into record-high corporate profits.

    No matter the cause, the stock market was long overdue to take a breather. Before Friday, the S&P 500 had gone the longest stretch ever without a 3% pullback. Now the S&P 500's record-long period without a 5% retreat is in jeopardy.

    Related: This is why the Dow is plunging

    While they can be scary, market pullbacks prevent stocks from overheating and give investors who were stuck on the sideline a chance to get in. Janet Yellen, who just stepped down as Fed chief, told PBS on Friday that she still believes "asset valuations generally are elevated."

    Despite the recent turmoil, the Dow remains up almost 40% since President Trump's election. The robust performance has been driven by strong corporate profits, healthy economic growth and excitement about the Republican tax cut for businesses.

    Analysts at Bespoke Investment Group urged calm.

    "Take a deep breath," the firm wrote in a research note on Friday. "For those investors that may have forgotten, this is what a market decline feels like."

    The question is whether the market retreat deepens or whether investors buy at the dip, a mentality that has supported stocks for months.

    "The fundamentals of the economy remain quite strong," said Janney's Luchini. "It's hard to make the case for why we should be down more than 10% -- unless we encounter negative economic news."

    Wells Fargo suffered some of the worst of the selling on Monday. The No. 2 U.S. bank plunged 9% after unprecedented sanctions were handed down by the Fed late Friday.

    Source: http://money.cnn.com/2018/02/05/investing/stock-market-today-dow-jones/index.html

    ---------------------------------------------------------------------------------------------------------------------------

    This has also made me nervous. I hope not it will be the morning that I wake up and only to see my girlfriend inform me that the monetary system has crashed..

    My Reaction:

    [​IMG]

    My Money my Babies!!! Time to buy gold
     
    #1
    Pupi, walkingdog, Barge and 5 others like this.
  2. FacePunch Punchin' Faces

    FacePunch
    Joined:
    Apr 13, 2017
    Messages:
    5,859
    Likes Received:
    14,354
    Location:
    Courteously Obeying All Traffic Laws
    Because it's all a bunch of bullshit.
     
    #2
  3. bobgeese Yellow Card

    bobgeese
    Joined:
    Mar 22, 2012
    Messages:
    6,999
    Likes Received:
    7,934
    Shit, if it crashes I’ll be right there to throw in my shekels, just like last time.
     
    #3
  4. 44nutman Black Belt

    44nutman
    Joined:
    Mar 10, 2010
    Messages:
    7,116
    Likes Received:
    9,684
    Time to buy Beans and Ammo
     
    #4
  5. LogicalInsanity Gold Belt

    LogicalInsanity
    Joined:
    Apr 29, 2012
    Messages:
    23,059
    Likes Received:
    11,344
    I'm gonna stock up on cliff bars and bottled water.
     
    #5
    Pupi, Cuzcatlan, AFCrookie and 2 others like this.
  6. IloveTHIS Red Belt

    IloveTHIS
    Joined:
    Dec 7, 2011
    Messages:
    7,861
    Likes Received:
    5,519
    I wish I didn't read this
     
    #6
  7. Rational Poster Scourge of the War Room

    Rational Poster
    Joined:
    Sep 18, 2013
    Messages:
    23,022
    Likes Received:
    19,806
    Thanks Trump!
     
    #7
    Pupi, FinalFight, Juventud and 6 others like this.
  8. 21 Savage Yellow Card

    21 Savage
    Joined:
    Sep 15, 2017
    Messages:
    2,143
    Likes Received:
    2,831
    Location:
    slob on my knob
    this is it
     
    #8
    mike sherry and Edison Carasio like this.
  9. headkicktoleg Only this manupod crescent in shape has escaped

    headkicktoleg
    Joined:
    Jul 19, 2014
    Messages:
    16,608
    Likes Received:
    30,679
    Location:
    Raleigh, NC
    Seems like a pretty normal correction after huge gains for months.
     
    #9
  10. sniper Sergei Provider

    sniper
    Joined:
    Sep 2, 2005
    Messages:
    3,625
    Likes Received:
    8,801
    Im a hobo so this doesnt affect me in the slightest

    Thoughts and prayers for all the big time wall street investor sherdoggers
     
    #10
    ookii, Pupi, DaDamn and 12 others like this.
  11. Clear Winner Big Poppa Pars

    Clear Winner
    Joined:
    Jul 27, 2012
    Messages:
    18,313
    Likes Received:
    31,604
    Location:
    Labcaboncalifornia
    I'm ready.......

    [​IMG]
     
    #11
  12. Clear Winner Big Poppa Pars

    Clear Winner
    Joined:
    Jul 27, 2012
    Messages:
    18,313
    Likes Received:
    31,604
    Location:
    Labcaboncalifornia
    Wait, just read the whole OP. OK,,,, NOW I'm ready

    [​IMG]
     
    #12
    ookii, Pupi, walkingdog and 19 others like this.
  13. Rebound59 金繕い belt

    Rebound59
    Joined:
    Aug 21, 2009
    Messages:
    10,084
    Likes Received:
    5,128
    Location:
    The Garden of the Gulf
    Already winning by deregulation and tax cuts, I see.
     
    #13
    Edison Carasio and kpt018 like this.
  14. Satsui Ryu Brown Belt

    Satsui Ryu
    Joined:
    Feb 14, 2012
    Messages:
    3,946
    Likes Received:
    1,569
    Only a matter if time, but this timing sucks for me. If this happened in about a year and a half it would not be an issue for me.
     
    #14
  15. IloveTHIS Red Belt

    IloveTHIS
    Joined:
    Dec 7, 2011
    Messages:
    7,861
    Likes Received:
    5,519
    What's in a year and a half?

    I have a significant amount in a wells Fargo portfolio. I'm going crazy wondering how much I just got fucked
     
    #15
  16. Higus Silver Belt

    Higus
    Joined:
    Feb 27, 2008
    Messages:
    11,461
    Likes Received:
    5,162
    Location:
    Somerville, MA
    That's been what I've been reading, which makes sense, but here's something I find really troubling...

    One analysis I saw (can't find it now, but I'll link it if I find it later) said that news of raising wages was causing investors to pull out of the market. I've heard similar things happening with other companies that announce raises to their employee wages, where investors become angry that the profits aren't going to their dividends and they sell off stock as a response. This has some very troubling class warfare-esque implications.
     
    #16
    HunterAcosta and Sohei like this.
  17. Falsedawn build or destroy

    Falsedawn
    Joined:
    Jun 14, 2009
    Messages:
    13,122
    Likes Received:
    20,460
    Location:
    El Kulum
    I'm all stocked up on titties and beer, so bring it stock market!
     
    #17
    Pupi, Kadafi, Limbo Pete and 2 others like this.
  18. uncommon Brown Belt

    uncommon
    Joined:
    Oct 13, 2010
    Messages:
    2,913
    Likes Received:
    3,236
    The only crash thats going to happen is the average joe being to poor to benefit from the gains of the market.

    the biggest companies have access to capital that allows them to purchase whatever technology they need to outcompete the average joe (automation)

    if people try to get smart and go on strike they are more likely to be replaced by a robot and go to jail for not paying their bills than getting a better standing in the workplace.

    if a specific company in the stock index becomes obsolete the indexes reconfigure to a new company (survivorship bias)

    (dow jones holds few if any of the original companies it started with.)

    so overall the richest companies are going to get richer.
    (Pareto distribution)
     
    #18
  19. Edison Carasio Excellence of execution belt

    Edison Carasio
    Joined:
    Feb 13, 2007
    Messages:
    18,112
    Likes Received:
    29,520
    Wait the stocks falling . . . Like things that fall might trickle . . . And stocks create wealth . . . Soooo the wealth is trickling down!

    MAGA LIBZ BTFO AGAIN
     
    #19
    Pupi, Essie and Strychnine like this.
  20. IloveTHIS Red Belt

    IloveTHIS
    Joined:
    Dec 7, 2011
    Messages:
    7,861
    Likes Received:
    5,519
    You sound like someone that knows what they are talking about. I have my life savings in a wells Fargo portfolio. I don't follow any of this shit, that's what I have a financial advisor for. Should I be worried at all? If it's down 10% on the next report that will be a massive amount of money for me
     
    #20

Share This Page

monitoring_string = "fd5733925866a04e50edd70f38dfaa35"
monitoring_string = "603ac9fff68f23709f2a42bf5e29272b"