Stock Market drops 1000 points this morning

[PennStateNate]

Australian market dropped 2.5% in 20 minutes
Chinese market 7% in an hour

China and NK ready to bomb SK over loudspeakers.


WTF is going on?

 

[sluggo72]

I blame Jay

 

[dawgduice]

"It just doesn't matter"

 

[bmw199]

Pricing in a lot of bad news and expected bad news. Hopefully this doesn't hurt consumption in the US or employment in the next quarter or two.

 

[Behrendfutbol]

Cash is King. Get ready to do some early Christmas shopping.

 

[michnittlion]

I blame Jay

Jay is good for the economy. He's employing several lawyers through his lawsuits.

 

[Ten Thousan Marbles]

Australian market dropped 2.5% in 20 minutes
Chinese market 7% in an hour

China and NK ready to bomb SK over loudspeakers.


WTF is going on?

Amazing how much of our world is controlled by these sick puppies.

 

[mn78psu83]

Cash is King. Get ready to do some early Christmas shopping.

Cash is King.

It sure doesn't suck to have it. I had a client who said "Cash is King" all the time. Easy for him to say - he had plenty of it.

 

[jj410]

Australian market dropped 2.5% in 20 minutes
Chinese market 7% in an hour

China and NK ready to bomb SK over loudspeakers.


WTF is going on?

This is not that unusual.

Australian market dropped 2.5% in 20 minutes
Chinese market 7% in an hour

China and NK ready to bomb SK over loudspeakers.


WTF is going on?

Some perspective: Since the Dow index inception in 1896, it has only increased seven or more years three times; this year, it's on a six year winning streak, so it was kind of overdue. It also drops about 5% in a day every couple of years. In 2002-2004, it dropped 6%, 7% and 17% for the year. In 2008, it went down 34%. This year it is down 10%.
Short-term shocks like this are common in the stock market and long-term bears are possible. Now is a good time to see how you react. If you rush to sell or buy short, it probably means your allocation is too high in stocks.
(Whatever happened to 100 minus age as a good rule of thumb or starting point for stock allocation? Even that may be too rich for many.)

 

[mn78psu83]

This is not that unusual.

Some perspective: Since the Dow index inception in 1896, it has only increased seven or more years three times; this year, it's on a six year winning streak, so it was kind of overdue. It also drops about 5% in a day every couple of years. In 2002-2004, it dropped 6%, 7% and 17% for the year. In 2008, it went down 34%. This year it is down 10%.
Short-term shocks like this are common in the stock market and long-term bears are possible. Now is a good time to see how you react. If you rush to sell or buy short, it probably means your allocation is too high in stocks.
(Whatever happened to 100 minus age as a good rule of thumb or starting point for stock allocation? Even that may be too rich for many.)

Excellent post. This is the perfect time for each individual investor to gauge his/her own market psyche with respect to the all-pervading psychic forces of fear and greed. How much can I cut those bonds of willing?

 

[jjsocrates]

Australian market dropped 2.5% in 20 minutes
Chinese market 7% in an hour

China and NK ready to bomb SK over loudspeakers.


WTF is going on?

Thanks, Obama.

Don't get in the habit of looking at your balances daily. It'll only give you agita.