Question about Stock Marketgreenspun.com : LUSENET : TimeBomb 2000 (Y2000) : One Thread
I am not a stock market watcher but....I just checked the DJIA and it is currently down 240. Is that a usual occurance. The fall seems to be steady and getting more steep. Also I am now unable to get a market chart and Charles Schwab
-- Raymond Jackson (email@example.com), January 04, 2000
Yes, it is a common occurrence.
-- (Ifirstname.lastname@example.org), January 04, 2000.
Just a thought, one reason may be due to the fact that a lot of foreign investors came into the market several months b4 the rollover for the relative safety. As everyone else in the world, they did not know what was going to happen.
Now that we have become inundated with 'all's well', it looks to me that some, if not all, are taking their money out and running.
-- idunno (email@example.com), January 04, 2000.
Haven't you heard? Volatility is the norm, people tend to do some profit taking this time of year. Nothing to worry about. P/E are still reasonable. Now's the time to buy, take advantage of those bargains.
-- Tim (firstname.lastname@example.org), January 04, 2000.
DOW -242.62 11114.89 -2.14%
NASDAQ -122.80 4008.35 -2.97%
S&P 500 -36.90 1418.32 -2.54%
BOND 13/16 94 3/8 6.55%
last updated at
01/04 12:54 p
-- slide (email@example.com), January 04, 2000.
No, thankfully, it's NOT a usual occurrence. But as people tend to follow the crowd, selling when everyone else sells, buying when everyone else buys, you get these occasional big drops. If one is a true long-term investor, these day-to-day drops shouldn't matter. But because all the CNNs, MSNBCs, etc. must fill all that time, all they have to say is "Wow what a drop!". And the herd, after hearing it for the tenth time, starts to think "Wow, better sell" and it becomes a chain reaction.
-- liu (firstname.lastname@example.org), January 04, 2000.
No, curbs are in right now. I believe trading is halted for at least 30 minutes. At I don't believe you can sell any stock right now, but you can buy(if you have a death wish). They will lift the curbs in 30 minutes and we will see where it goes. The reason they put the curbs in is as a circut breaker to keep the market from dropping straight down. The idea makes sense, but it don't work. Curbs only create a pressure cooker to sell.
-- P.J. Scott (email@example.com), January 04, 2000.
Currently there is a bit of bewilderment on CNBC regarding the current situation. Bottom line is today Alan Greepspan was again given the controls to the economy, rates are supposed to move down, and still, a major sell off is underway.
All this even with the "Y2k non-event" and it leaves many puzzled.
the DIJA is down 253... opps no... 256
the NASDAQ is down 128
The S&P is down 38
After yesterdays volatility it does raise concerns.
-- Michael Taylor (firstname.lastname@example.org), January 04, 2000.
240 points is a fairly big drop, although obviously not as big on a percentage basis as it used to be. European markets are down big, too. My guess is that the Y2K relief rally took place in December when just about everyone decided Y2K would be a non-issue. Greenspan has been adding liquidity to the financial system to deal with Y2K liquidity problems. Now that Y2K is over, Greenspan may need to raise rates. The long bond rate has already risen over 6.5%.
-- nobody (email@example.com), January 04, 2000.
BTW, the post I made on that thread was sarcasm. Perhaps I should have been more explicit.
-- Tim (firstname.lastname@example.org), January 04, 2000.
And if P/E ratios begin to fall back in line, we'll see a major (and I do mean MAJOR) correction. All depends on whether enough "investors" still think that "it's different now" and that these astronomical (in some cases, triple-digit) price/earnings ratios are sustainable.
Seems unlikely, but this market has been absolutely nuts for the last couple of years, so who the heck knows? Me, I'm just staying out of its way for a while and continuing my boring old debt-reduction project...
-- DeeEmBee (email@example.com), January 04, 2000.
Market Update, 1:19 PM ET
DJIA 11,064.71 -292.80 S&P 1,410.73 -44.49 NASD 3,966.91 -164.24
Looks like the slide is continuing.
-- Cherokee (Cherokee@qtmail.com), January 04, 2000.
...lookin' bleak. Dow down over 300.
-- TM (firstname.lastname@example.org), January 04, 2000.
I've always been told that the market tends to react PRIOR to an event- in anticipation of it. So, for instance, in anticipation that the Feds would not raise interest rates, it would advance, etc.
So- I figured that the reason for the good market in Dec. was that the herd had decided Y2K was gonna be a non-event. So- they had already invested with that in mind. Now, the non-event is done and they are anticipating stuff such as all the "glitches", the bloated market, weird PE ratios, etc- all the stuff they have ignored and they will sell. Also-agree about the foreign investors- think alot of cash came in that way.
-- farmer (email@example.com), January 04, 2000.
Profit taking. 300-500 points are no big deal.
-- Gary S. (firstname.lastname@example.org), January 04, 2000.
The dunderheads are finally taking profits. A paper gain is only that until you capture by selling, period.
Lets say you were at Vegas, how many times would you let your bet ride before cashing in? If you never cash it in then what's the point of gambling? Free drinks?
Know when to fold, know when to hold. The information has come from a hundred different directions that the market is poised to burst. How many clues are needed?
-- Guy Daley (email@example.com), January 04, 2000.
Time for another post that pumps gold.
-- Lars (firstname.lastname@example.org), January 04, 2000.