Dear Stock Market
Discussion
DomBertone said:
Why ha ha? Personally reading some of the posts on iii i feel sorry for alot of people, let alone my own losses i took today.
Ha ha only in a 'Simpsons' way, where Nelson often laughed at terrible misfortune.This is pretty s
t for anyone who is due to retire in the next few months/years. For those still with 10/20 years, I doubt it will be as bad.I suppose the problem is that much of the alleged 'growth' of the past decade seems to have been funded by borrowing. Not much growth of earnings leading to increased consumption etc.
I expect if you stripped out all the consumption and business generated by personal and government borrowing, equities would have probably grown to about this level anyway, but without the boom and crash of the last few years.
johnfm said:
This is pretty st for anyone who is due to retire in the next few months/years. For those still with 10/20 years, I doubt it will be as bad.
I believe decent pensions start moving your investments in to low risk segments as you approach retirement, to prevent exactly this happening...t for anyone who is due to retire in the next few months/years. For those still with 10/20 years, I doubt it will be as bad.(certainly some of my schemes do!)
sussexjob said:
De la rue went up slightly today which is odd unless you think they may be printing the next currencies after the euro is scrapped.
That's due to the French company that wants to take them over having sold a division, freeing up funds for a fresh takeover attempt in December this year, rather than any chance at banknote printing. Most of the countries in Europe retain banknote printing capability - a little known fact about the Euro is that the security features on the banknotes were dumbed down so that all the European state print works could manufacture them. It's likely they would see a very short term benefit, but once the initial rush was out of the way there would be no long term gain.
The Dow dropped 503 points today, that is 4.3%. On that day in 1987 it dropped 503 points as well; however, in that time, the Dow was far smaller, thus the same point drop was a far higher percentage and yet the world still turned.
Below is a bit that I posted on two other threads running on the same subject, maybe it can bring a perspective:
In the light of the massive market dives of recent days (today being the worse in a while), I want to remind people that money matters is an emotional thing as much as it is a science. Therefore, we have to give equal credence to the human emotional factor as much as the hard numbers IMO. The recent hard talk by both spectrums of politicians has finally managed to "scare" even those that usually exhibit calm. As a result, those who would invest in a business expansion, move on an aquisition, launch a new product, etc has decided to sit tight to see how the climate looks. Those who made recent money on commodities are cashing out their profits and staying pat to see if this administration has any great ideas or wait until the next one. Note that in this mass selloff, Bonds have remained still, no big sell off; those are remaining a safe haven.
Emotion, whether we like it or not, gets as many seats at the financial table as financial science.
A move or action that raises spirits or is perceived to create a new and better business climate will raise consumer confidence, consumer confidence is the positive emotion that convinces people to turn loose of their money. That in turn can turn the economy around; money is out there, it just needs to circulate.
Ironically, it is a positive emotion that will be needed to spark a positive move in the science of money. All IMHO.
Below is a bit that I posted on two other threads running on the same subject, maybe it can bring a perspective:
In the light of the massive market dives of recent days (today being the worse in a while), I want to remind people that money matters is an emotional thing as much as it is a science. Therefore, we have to give equal credence to the human emotional factor as much as the hard numbers IMO. The recent hard talk by both spectrums of politicians has finally managed to "scare" even those that usually exhibit calm. As a result, those who would invest in a business expansion, move on an aquisition, launch a new product, etc has decided to sit tight to see how the climate looks. Those who made recent money on commodities are cashing out their profits and staying pat to see if this administration has any great ideas or wait until the next one. Note that in this mass selloff, Bonds have remained still, no big sell off; those are remaining a safe haven.
Emotion, whether we like it or not, gets as many seats at the financial table as financial science.
A move or action that raises spirits or is perceived to create a new and better business climate will raise consumer confidence, consumer confidence is the positive emotion that convinces people to turn loose of their money. That in turn can turn the economy around; money is out there, it just needs to circulate.
Ironically, it is a positive emotion that will be needed to spark a positive move in the science of money. All IMHO.
Jimbeaux said:
The Dow dropped 503 points today, that is 4.3%. On that day in 1987 it dropped 503 points as well; however, in that time, the Dow was far smaller, thus the same point drop was a far higher percentage and yet the world still turned.
Below is a bit that I posted on two other threads running on the same subject, maybe it can bring a perspective:
In the light of the massive market dives of recent days (today being the worse in a while), I want to remind people that money matters is an emotional thing as much as it is a science. Therefore, we have to give equal credence to the human emotional factor as much as the hard numbers IMO. The recent hard talk by both spectrums of politicians has finally managed to "scare" even those that usually exhibit calm. As a result, those who would invest in a business expansion, move on an aquisition, launch a new product, etc has decided to sit tight to see how the climate looks. Those who made recent money on commodities are cashing out their profits and staying pat to see if this administration has any great ideas or wait until the next one. Note that in this mass selloff, Bonds have remained still, no big sell off; those are remaining a safe haven.
Emotion, whether we like it or not, gets as many seats at the financial table as financial science.
A move or action that raises spirits or is perceived to create a new and better business climate will raise consumer confidence, consumer confidence is the positive emotion that convinces people to turn loose of their money. That in turn can turn the economy around; money is out there, it just needs to circulate.
Ironically, it is a positive emotion that will be needed to spark a positive move in the science of money. All IMHO.
This would be ok if the whole market sentiment was purely based on emotion but quite clearly it isn't. The depressing figures consistently coming out from the US continue to drag its economy down and I'd be surprised if today is a good day. I hope the news isn't too bad today since it could release another tidal wave of losses.Below is a bit that I posted on two other threads running on the same subject, maybe it can bring a perspective:
In the light of the massive market dives of recent days (today being the worse in a while), I want to remind people that money matters is an emotional thing as much as it is a science. Therefore, we have to give equal credence to the human emotional factor as much as the hard numbers IMO. The recent hard talk by both spectrums of politicians has finally managed to "scare" even those that usually exhibit calm. As a result, those who would invest in a business expansion, move on an aquisition, launch a new product, etc has decided to sit tight to see how the climate looks. Those who made recent money on commodities are cashing out their profits and staying pat to see if this administration has any great ideas or wait until the next one. Note that in this mass selloff, Bonds have remained still, no big sell off; those are remaining a safe haven.
Emotion, whether we like it or not, gets as many seats at the financial table as financial science.
A move or action that raises spirits or is perceived to create a new and better business climate will raise consumer confidence, consumer confidence is the positive emotion that convinces people to turn loose of their money. That in turn can turn the economy around; money is out there, it just needs to circulate.
Ironically, it is a positive emotion that will be needed to spark a positive move in the science of money. All IMHO.
Positive emotion cannot and will not save the US from the abyss it finds itself in today with ever increasing debts and its ever disappearing ways of paying it back and the longer this cycle goes on for the worse the fallout will be when the inevitable happens.
It isn't just the US in this situation but the US economy is key to the world economy and the US now seems in a worse position than ever hence the market sentiment. Plus of course other metrics the market is using like unemployment rates and manufacturing figures which are a true representation of the US economy.
I feel delaying decisions to make sharp and aggressive cuts is simply making the situation worse since the US is loosing more than 200bn per month.
The whole stock market thing is a joke. We all know it will go up again because the bookies who play in it will want to cash in as they always do. The trouble is that this boom and bust stuff gives a completely false picture of what's happening in the real world. We need to downplay the importance of the stock market as an indicator or economic health.
tonym911 said:
The whole stock market thing is a joke. We all know it will go up again because the bookies who play in it will want to cash in as they always do. The trouble is that this boom and bust stuff gives a completely false picture of what's happening in the real world. We need to downplay the importance of the stock market as an indicator or economic health.
but people like Casinos.Again I find myself wandering in to a finance question with no real knowledge of how it all works, but anyways, here goes... The news last night was saying £50billion wiped off the stock market. Does that mean there are other people/companies who are £50billion up? Or does that £50billion evaporate in to thin air?
AJI said:
Again I find myself wandering in to a finance question with no real knowledge of how it all works, but anyways, here goes... The news last night was saying £50billion wiped off the stock market. Does that mean there are other people/companies who are £50billion up? Or does that £50billion evaporate in to thin air?
Thin air, unless you count the "evil" shorters.HowMuchLonger said:
AJI said:
Again I find myself wandering in to a finance question with no real knowledge of how it all works, but anyways, here goes... The news last night was saying £50billion wiped off the stock market. Does that mean there are other people/companies who are £50billion up? Or does that £50billion evaporate in to thin air?
Thin air, unless you count the "evil" shorters.
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