Dow down over 600!

[BobPSU92]

MARKET. CORRECTION.

FIRE. MONEY.

 

[Fayette_LION]

MARKET. CORRECTION.

FIRE. MONEY.

I've been waiting for a correction to put some other moneys into the market. This may be it.

 

[Jerademan74]

MARKET. CORRECTION.

FIRE. MONEY.

What goes down, must go up! That is the anti-Newton theory of economics that is helped by Viagra if necessary!

 

[Psualum2007]

This is healthy for the markets. I hope it goes down more next week.

 

[Cold Smoke]

This is healthy for the markets. I hope it goes down more next week.

Overheated, fearful market. Big vix move today. So far, well short of a meaningful correction. Next week, who knows?

 

[TiredOldLion]

I think the market may give up most of January’s gain but then may level out. But there’s a lot of money that’s going to have to be allocated back into a money maker and I’m not thinking bonds are it. And I think money stays domestic for now.
Patience will be rewarded.

 

[BobPSU92]

Dow closes down 665 today.

 

[Nitt1300]

 

[Big 0]

The PE ratio is almost double historic averages, so it’s time for the market to drop some.

 

[AldenT]

The PE ratio is almost double historic averages, so it’s time for the market to drop some.

It is?

 

[NitneLiun]

Bloodbath in the bond market also. Rising interest rates will do that. All that debt just got a lot more expensive.

The equity risk premium is coming home to roost.

 

[mrtailgate]

Greed versus optimism. Normally, when greed prevails, the market reacts. There is certainly a high level of greed right now in the market but I still don’t see people pulling out and getting jack squat in a money market or other instrument. So, people continue to pour money into the markets.

 

[PSU20]

As "Warren" always said: "Be fearful when others are greedy, and greedy when others are fearful." I would say many are fearful today!

 

[TenerHallTerror]

Dow will drop to 5000 by Thursday. BANK ON IT

 

[BobPSU92]

Dow will drop to 5000 by Thursday. BANK ON IT

FOOTBALL.

 

[TenerHallTerror]

FOOTBALL.

CULTURE!

 

[fairfaxlion2]

The Shiller PE Ratio is above 33, which is absurdly high and has only been higher during one period in history (dot-com).

 

[BobPSU92]

CULTURE!

Please take this opportunity to remember that Wall Street has a culture problem.

 

[bdgan]

The Shiller PE Ratio is above 33, which is absurdly high and has only been higher during one period in history (dot-com).

True, but 2018 earnings could be 15% higher with help of tax cuts.

 

[fairfaxlion2]

True, but 2018 earnings could be 15% higher with help of tax cuts.

Yes, and that's only been priced in about 10 times now.

I could be wrong but I really think there is going to be a huge correction. Look at the 1987 crash one year after the 1986 tax cuts. But that time the Shiller PE was not even at 20. We are in 1929 or 2000 territory in terms of how the market is priced.

 

[sluggo72]

The Shiller PE Ratio is above 33, which is absurdly high and has only been higher during one period in history (dot-com).

Ok but what was the 10 yr

 

[PSU20]

IIRC it only took about 6 months or less for the 1987 crash to correct itself. Market crashes can be healthy; however, the 2007-08 was brutal.

 

[bdgan]

Yes, and that's only been priced in about 10 times now.

I could be wrong but I really think there is going to be a huge correction. Look at the 1987 crash one year after the 1986 tax cuts. But that time the Shiller PE was not even at 20. We are in 1929 or 2000 territory in terms of how the market is priced.

Schiller PE is 25.78
http://www.multpl.com

What were interest rates in 1987? I'd bail on stocks if I could get a 10% treasury.

 

[fairfaxlion2]

Schiller PE is 25.78
http://www.multpl.com

What were interest rates in 1987? I'd bail on stocks if I could get a 10% treasury.

Sorry, I was talking about the 10-year Shiller
http://www.multpl.com/shiller-pe/

The last two times it has been in this territory there have been huge drops within a year or two

 

[tmacpolo]

I've been waiting for a correction to put some other moneys into the market. This may be it.

How long have you been waiting? How much did you miss out on?

 

[TenerHallTerror]

down another 300 pts so far today.

FIRE. MONEY.

 

[BobPSU92]

down another 300 pts so far today.

FIRE. MONEY.

Down 450 now.

 

[EPC FAN]

MARKET. CORRECTION.

FIRE. MONEY.

Down almost 600 today.

 

[TenerHallTerror]

back below 25K

 

[sluggo72]

Down almost 600 today.

it was almost even for the day around 11 am , the NASDAQ was positive. When you see days like this, IMO it means the computers, High Frequency traders are in charge, and as soon as they flip the switch, it will rally back.

 

[BobPSU92]

The Dow is down over 750 now.

Money hates us.

 

[TenerHallTerror]

The Dow is down over 750 now.

Money hates us.

money has a culture problem ignore it

 

[fairfaxlion2]

Yikes. Later in 2018, if earnings do not live up to the tax cut expectation, look out below

 

[BobPSU92]

money has a culture problem ignore it

I've put money on my Ignore List.

 

[TenerHallTerror]

the bottom is dropping out

down 1100 pts

 

[EPC FAN]

The Dow is down over 750 now.

Money hates us.

Down 1043 right now

 

[TenerHallTerror]

1500 points

 

[TenerHallTerror]

it was almost even for the day around 11 am , the NASDAQ was positive. When you see days like this, IMO it means the computers, High Frequency traders are in charge, and as soon as they flip the switch, it will rally back.

f**kers finally kicked in, lol

 

[psu00]

Didn’t there used to be some safeguard to prevent these runs? I thought there was an automatic freeze in trading put in place years ago if it dropped like 500?

 

[bdgan]

Yikes. Later in 2018, if earnings do not live up to the tax cut expectation, look out below

I'm not sure what the expectations are but tax cuts alone should give year over year earnings a big boost.