OMG, the market's crashing! Sell! Sell! Sell!

[Bob Of Burleson]

And give me a buying opportunity.

Stocks are having a rotten end to the month.

Money.CNN.com

All the major indexes fell in early trading Thursday and gave back the gains they made in July.

The Dow, S&P 500 and Nasdaq are all down, with the Dow dropping 155 points. The Nasdaq is having the worst day of the three, falling 1.4%..

Heavy selling overseas, driven by worries about Argentina's latest debt default and more problems with a big Portuguese bank, offset good economic data in the United States released Wednesday.

MORE

[GFB]

Some time between now and November, there is going to be a great buying opportunity..not sure if this is it or not..but I'm hopeful.

[planosteve]

So, riddle me this? If the economy is doing so well, 4% gain in the 2nd quarter, why is the market tanking?

[Bob Of Burleson]

So, riddle me this? If the economy is doing so well, 4% gain in the 2nd quarter, why is the market tanking?

Because, you silly thing, that's what markets do.

[GFB]

So, riddle me this? If the economy is doing so well, 4% gain in the 2nd quarter, why is the market tanking?

I'm not sure where you got.."Economy is doing so well" from..

..but..someone who comments and claims to hold all of the answers to investing and the economy, should know that periodic corrections in a bull market..are not only normal..they're NECESSARY.

Otherwise, the bull market, which in this case is rather long in the tooth..has NO chance of continuing.

If this correction is better than 5%, and especially if it's closer to 10%..the bull market will have new life and have little problem reaching new highs.

[GFB]

Right now, the market is about 2 1/2% off it's all time high.

[Red Oak]

So, riddle me this? If the economy is doing so well, 4% gain in the 2nd quarter, why is the market tanking?

Because the economy is not doing well, and there isn't any sign that it will do much better in the near future.

[Bob Of Burleson]

Dow plunges 317 points, now down for year

By Melvin Backman

NEW YORK (CNNMoney) — The best thing we can say about Thursday's stock market trading is that it is now over. The Dow fell 317 points, erasing all of its gains for the year.

The S&P 500 and Nasdaq fell sharply as well, each down about 2%. They gave back the all the gains they had made in July.

Heavy selling overseas, driven by worries about Argentina's latest debt default and more problems with a big Portuguese bank, combined with a slew of negative earnings and a disappointing outlook on manufacturing from the Federal Reserve Bank of Chicago to drop stocks.

The VIX (VIX), a gauge of market volatility, jumped almost 27%. CNNMoney's Fear & Greed Index, which includes the VIX and six other gauges of sentiment, is showing signs of "Extreme Fear."

MORE

[GFB]

Dow plunges 317 points, now down for year

By Melvin Backman

NEW YORK (CNNMoney) — The best thing we can say about Thursday's stock market trading is that it is now over. The Dow fell 317 points, erasing all of its gains for the year.

The S&P 500 and Nasdaq fell sharply as well, each down about 2%. They gave back the all the gains they had made in July.

Heavy selling overseas, driven by worries about Argentina's latest debt default and more problems with a big Portuguese bank, combined with a slew of negative earnings and a disappointing outlook on manufacturing from the Federal Reserve Bank of Chicago to drop stocks.

The VIX (VIX), a gauge of market volatility, jumped almost 27%. CNNMoney's Fear & Greed Index, which includes the VIX and six other gauges of sentiment, is showing signs of "Extreme Fear."

MORE

Extreme fear...good.

Complacency...bad.

[LibraryLady]

And give me a buying opportunity.

You beat me to it.

[planosteve]

And give me a buying opportunity.

You beat me to it.

Danger Library Lady Danger!
Before you do anything go here:
http://davidstockmanscontracorner.com/d ... ur-friend/

[GFB]

And give me a buying opportunity.

You beat me to it.

Danger Library Lady Danger!
Before you do anything go here:
http://davidstockmanscontracorner.com/d ... ur-friend/

Regardless of the convoluted mumbo jumbo in that rambling article by David Stockman..here is reality for Library Lady.

First, it appears she is deciding to put some..or some MORE money into the U.S. stock market.

No question we're in a correction..so far a rather paltry one..but it could continue downward.

Library Lady's choices are as follows..

She could put money in now..or at Monday's open..no question she will do well long term..because corrections "uncorrect."

She could do what I am doing..waiting to see how low this correction will go..and although I'm not savvy enough to pick the optimum buying point..whether we both get in now or in 5% more downward..our futures will be financially better for it either way..but getting in 5% lower would be a great success that would pay off sooner.

The one bad possibility, is that she and I both could find ourselves investing at a time when we are getting ready to enter a secular bear market.

That would happen if and only if..the stock market declines in the 20% range off the highs..that would mean the S&P would fall to 1600 or below..it's presently at 1925.

I think that is extremely unlikely..and well worth the gamble..(one that I personally believe is NOT a gamble at this time..Bob Brinker agrees.)

[planosteve]

Yeah, and the road goes on forever and the party never ends.

[GFB]

Yeah, and the road goes on forever and the party never ends.

You bet!

[planosteve]

Problem is the DJA unadjusted for inflation is just horsecrap. Here's the chart in non inflated dollars. And you really think it's going up from here?????

Dow Jones Inflation Adjusted.png (36.42 KiB) Viewed 935 times

[GFB]

In the long term the stock market grows in a way that makes inflation irrelevant.

If your money is all in a savings account..yes, inflation will hurt you long term.

[GFB]

..and "inflation" INCLUDES..stock prices.

[planosteve]

In the long term the stock market grows in a way that makes inflation irrelevant.

If your money is all in a savings account..yes, inflation will hurt you long term.

The stock market makes inflation irrelevant??? Really? Who's economic theory is that? Limbaughs?

It will also hurt you if you have it in bonds, or about anything else. The one thing that it will not hurt to have it in is gold. That is if the govt. doesn't make owning it illegal.

[GFB]

In the long term the stock market grows in a way that makes inflation irrelevant.

If your money is all in a savings account..yes, inflation will hurt you long term.

The stock market makes inflation irrelevant??? Really? Who's economic theory is that? Limbaughs?

.

The stock market grows at multiples of inflation..that's why.

It's no theory..stock market investors live it year after year.

Rush doesn't do economics.

[planosteve]

In the long term the stock market grows in a way that makes inflation irrelevant.

If your money is all in a savings account..yes, inflation will hurt you long term.

The stock market makes inflation irrelevant??? Really? Who's economic theory is that? Limbaughs?

.

The stock market grows at multiples of inflation..that's why.

It's no theory..stock market investors live it year after year.

Rush doesn't do economics.

No it doesn't! Look at the chart. The DJI average grew from 2,000 in 1983 to 16,000 in 1999. Since then it hasn't grown at all in the last 15 years and most of that time it was lower than it was in 1999.