-
Hey, guest user. Hope you're enjoying NeoGAF! Have you considered registering for an account? Come join us and add your take to the daily discourse.
Shit getting REAL - Dow CRASHES nearly 0.7% - Energy/Tech Reeling, Society Collapsing
- Thread starter Vanillalite
- Start date
- Status
(^.^)
CNN sez
Personally I just think companies right now are way overvalued.
1. Concerns are growing that China's economy is slowing down faster than its government has said.
2. Investors had been preparing for the U.S. Federal Reserve to raise its benchmark interest rate in September. However, the central bank has been sending mixed signals. That's dredging out the market's worst enemy: uncertainty.
3. Oil prices dropped below the key $40 level for the first time since 2009.
2. Investors had been preparing for the U.S. Federal Reserve to raise its benchmark interest rate in September. However, the central bank has been sending mixed signals. That's dredging out the market's worst enemy: uncertainty.
3. Oil prices dropped below the key $40 level for the first time since 2009.
Personally I just think companies right now are way overvalued.
This is mostly a response to whats going on in China, people believe its economy is slowing down.
More specifically, today there were some bad numbers (PMI is you want to get boringly technical) coming out of China.
D'ultimate
Member
Oil prices have been dropping for awhile now and the Feds affect the market like every other month with talks of hikes. Not to this extent tho.
Market was due for a correction due to several factors. Pick anything you want and lump it in with the rest.
Market was due for a correction due to several factors. Pick anything you want and lump it in with the rest.
mmazurkiewicz
Member
Last summer the euro was going to collapse due a Greek exit and yet stocks rallied 25%+ after.
Manmademan
Member
This is pretty much the right answer. the markets overreact to bad news, and there's a lot of it coming from china. Oil is also going down- partially due to oversupply, partially due to the iran deal going to add to that oversupply, and partially because china is not only slowing down, but all indications are that it's economic numbers are and have been fraudulent for a while.
Nothing to do with the US economy. You want to make a quick buck, start dumping money into the market before everyone comes to their senses in a week.
also a good point.
uncelestial
Member
My holdings of SPXS and DWTI thank you.
BTW, buy XIV if you know what's good for you.
BTW, buy XIV if you know what's good for you.
toxicgonzo
Taxes?! Isn't this the line for Metallica?
Tech stocks took a beating today.
Shouldn't try to catch a falling knife
Shouldn't try to catch a falling knife
rokkerkory
Member
Time to buy
Mr Nash
square pies = communism
I'm sure oversupply is a big part of it, but how is demand looking? We've seen commodity prices dropping for a while with oil appearing to be the last shoe to drop. Baltic Dry Index has been anemic for a while as well, so one has to wonder just how low global demand is right now. It's mirroring what happened in 2008 as we hit a major economic slowdown and the big crisis then. A lot of folks, and unfortunately governments as well now, are leveraged to the hilt, and the steps taken to solve everything that happened 7 years ago was a failure. A big correction seems likely and more painful than what should have happened back then because none of the problems were properly addressed.
While I agree the markets are overreacting (and more broadly, are pretty much divorced from the real economy) I would not generally recommend that people to try and catch a falling knife here.
No doubt, if you have money you can afford to lose and know what you're doing there is money to be made when the market act erratically, but naive small investors can get burned by playing that game.
Hero_of_the_Day
Member
Into what?
If you're smart, an index fund.
Isn't that almost $6 a gallon?
Roughly $4.80 CAD
Next year is going to be a banger. Can't wait!
http://www.cnbc.com/2015/08/20/sp-500-is-having-a-dull-year-and-thats-good-for-investors.html
http://www.cnbc.com/2015/08/20/sp-500-is-having-a-dull-year-and-thats-good-for-investors.html
Never understood the psychological nonsense we've made of money and its fiction, and the fuck-bubble known as the stock market. The natural world couldn't care less.
And yet this nonsense produced a depression and a recession. We're really hijacked by stupidity, and that's scary.
And yet this nonsense produced a depression and a recession. We're really hijacked by stupidity, and that's scary.
It allows a some people to make a lot of money without working, and they can use that money to affect policy.
Then Wall Street tricked America into putting their retirement money there and now we all need to care if want to or not.
to be clear, a stock market can provide an important service to the real economy, and times it does, but these days, it's mostly bullshit.
Manmademan
Member
I was speaking more of the dogma that money is wealth, and all of the bullshit that comes with that poor line of thought.
It can provide good work in a system that uses it well as a tool, which it can be. Does America? LOL
Vigilant Walrus
Member
Americans have angered the wrath of the great economy! it is time to stop pointing fingers! Steve!!
thoseAREmySHOES
Member
dead souls
Member
Finally I'll get some use out of my Y2K bunker.
S&P500 since January 2000:
Maybe we're heading for another crash, in which case discounts for all. But probably not.
If you're going to bump the thread every time the market drops to try and prove your point, someone should bump it every time it skyrockets to prove you wrong.
SapientWolf
Trucker Sexologist
Historically, the systems of trade that don't use fiat currency end up being even more inefficient than what we already have. It's the least worst solution.
D'ultimate
Member
If that's what we have to look forward to right now then it's going to be a long bumpy ride down and quite a few yrs to get back to where we were last Wednesday.
Maninthemirror
Banned
This is simply a course correction we were overdue for one.
preach
Mr Nash
square pies = communism
Looks like it's another sea of red in Asia at the moment, with US equity futures getting slammed. We could have a fun week ahead of us. Call me crazy but the Fed may be postponing an interest rate hike for a bit. Should we start taking bets on when QE4 is announced? =p
Edit: Wow, Shanghai Composite down over 8% right now even after the authorities said they were going to allow the state pension fund to invest in the stock market.
Edit: Wow, Shanghai Composite down over 8% right now even after the authorities said they were going to allow the state pension fund to invest in the stock market.
Unemployment rate is extremely low, aren't most economic indicators signaling that we've recovered well? There shouldn't be a need for QE4 and they should be able to raise interest rates correct?
ghostofsparta
Member
Shit, my ISOs are becoming worthless. Company stock has gone down 13 percent in the last month.
Mr Nash
square pies = communism
Unemployment rates are fun with numbers. A big contributor to it being so low is because a sizable number of people have given up on looking for work so aren't factored into the equation.
Bam Bam Baklava
Member
If you've got a better measurement that dates back to 1946-present I'd love to see it. Sick of these armchair economists telling us what data is supposed to be like.
What about GDP growth? Jobless claims? New home sales? Construction spending. There's plenty of metrics that show stable and good growth.
travisbickle
Member
The irony of this statement being the shit that's going to hit us from the Lacanian "real" world if we continue to burn fossil fuels.
This comes up every thread, and it's wrong every time.
Let's graph it again! The group you're talking about is discouraged workers. U3 is the official rate, and U4 is the rate plus discouraged workers.
The difference between the two is approximately the percentage of discouraged workers.
As you can see, there was a pop in 2008, but the percentage of discouraged workers has been trending downwards at approximately the same rate as the overall unemployment rate, and it's very close to the pre-2008 rate now.
- Status