Historic stock plung ahead?... or Chicken Little?

The #1 community for Gun Owners in Indiana

Member Benefits:

  • Fewer Ads!
  • Discuss all aspects of firearm ownership
  • Discuss anti-gun legislation
  • Buy, sell, and trade in the classified section
  • Chat with Local gun shops, ranges, trainers & other businesses
  • Discover free outdoor shooting areas
  • View up to date on firearm-related events
  • Share photos & video with other members
  • ...and so much more!
  • Tombs

    Grandmaster
    Rating - 0%
    0   0   0
    Jan 13, 2011
    12,022
    113
    Martinsville
    Federal reserve causes massive inflation and people start fearing interest hikes, causes a hard crash, average brain-dead citizen is going to blame it on Trump and the right.
     

    avboiler11

    Master
    Rating - 100%
    13   0   0
    Jun 12, 2011
    2,950
    119
    New Albany
    Last Friday's jobs report showed not only more hiring that expected, but the strongest wage growth in darn near a decade.

    Those two reports led people to be concerned about inflation, because inflation leads the Fed to raise interest rates, making borrowing more expensive...and the market got REAL used to cheap money most of the last decade.

    So basically, this drop is not based on any economic fundamentals, but rather fear about something that might happen.

    Think about it - more hiring and more pay for workers than expected (both of which are good for the economy) and the stock market tanks on that news???

    The sky is not falling.
     

    BugI02

    Grandmaster
    Rating - 0%
    0   0   0
    Jul 4, 2013
    31,896
    149
    Columbus, OH
    Already through the 50 DMA and within about 400 pts of the 100DMA, which would be also off 10% - a textbook correction. After hours trading still selling off, seems to indicate market will open lower tomorrow. IMO real floor will be tested possibly at 22500 (the 200DMA, which is pretty much indicative of reversion to the mean)

    Hard to tell how much of the drop was deserved and how much the amplification effect of programmed trading. I would guess about 1/3 deserved 2/3 amplification. The market looked pretty normal until it was down a little more than 600, then the drop from -700 to minus -1700 only took a heartbeat. The number of people selling into a down market and relative dearth of buying indicates either panic (for which other evidence does not exist) or algorithmic, brain-free trading

    IANAexpert YMMV
     
    Rating - 100%
    30   0   0
    Aug 4, 2017
    2,133
    113
    Fishers
    Already through the 50 DMA and within about 400 pts of the 100DMA, which would be also off 10% - a textbook correction. After hours trading still selling off, seems to indicate market will open lower tomorrow. IMO real floor will be tested possibly at 22500 (the 200DMA, which is pretty much indicative of reversion to the mean)

    Hard to tell how much of the drop was deserved and how much the amplification effect of programmed trading. I would guess about 1/3 deserved 2/3 amplification. The market looked pretty normal until it was down a little more than 600, then the drop from -700 to minus -1700 only took a heartbeat. The number of people selling into a down market and relative dearth of buying indicates either panic (for which other evidence does not exist) or algorithmic, brain-free trading

    IANAexpert YMMV


    16NZeSd.gif
     

    T.Lex

    Grandmaster
    Rating - 100%
    15   0   0
    Mar 30, 2011
    25,859
    113
    I will accuse Trump of the exact same thing I've accused every president since GHWB: they have no direct impact on the stock market or even, really, the economy at large.
     

    HubertGummer

    Master
    Rating - 100%
    2   0   0
    Jan 7, 2016
    1,572
    38
    McCordsville
    I will accuse Trump of the exact same thing I've accused every president since GHWB: they have no direct impact on the stock market or even, really, the economy at large.

    True, but they can still stay the hell out of the way and not impede it with tax burdens and regulations.
     

    Mgderf

    Grandmaster
    Site Supporter
    Rating - 100%
    43   0   0
    May 30, 2009
    17,879
    113
    Lafayette
    My uncle "dabbles" in the stock market.
    I was talking to him about this sell-off this evening.
    He told me that he has lost something just over $40K in the past 4 trading days, but is still up considerably from where he was this time last year.
    He also agreed that the fed, and not Trump, is responsible.

    Uncle has been in the game for a while now.
    He's seen these swings before, and says he's not worried (too much) and not getting out of the market.
     

    Kutnupe14

    Troll Emeritus
    Rating - 0%
    0   0   0
    Jan 13, 2011
    40,294
    149
    My uncle "dabbles" in the stock market.
    I was talking to him about this sell-off this evening.
    He told me that he has lost something just over $40K in the past 4 trading days, but is still up considerably from where he was this time last year.
    He also agreed that the fed, and not Trump, is responsible.

    Uncle has been in the game for a while now.
    He's seen these swings before, and says he's not worried (too much) and not getting out of the market.

    You're clear of the Fed's role in this right... as in why the raise interest rates? But, I agree, the fed IS responsible... like it's responsible for the gains in the market. However, if Trump is going to take credit for the gain in the market, then he probably should take credit for its losses. Nevertheless, if the stock market has protracted losses, the President Spur Bones's tax cut isn't going to be doing anyone any favors.
     

    Tombs

    Grandmaster
    Rating - 0%
    0   0   0
    Jan 13, 2011
    12,022
    113
    Martinsville
    One thing I find curious about this is, I wonder how much appointing a new chair to the federal reserve had to do with all this...

    Powell was just put in today.
     

    Spear Dane

    Grandmaster
    Rating - 100%
    3   0   0
    Sep 4, 2015
    5,119
    113
    Kokomo area
    One thing I find curious about this is, I wonder how much appointing a new chair to the federal reserve had to do with all this...

    Powell was just put in today.

    Nothing to do with it at all. He was confirmed two weeks ago, he's already priced into the market.
     

    Dr.Midnight

    Master
    Rating - 100%
    13   0   0
    Jul 24, 2011
    4,414
    113
    Monroe County
    I'm no financial whiz, but even I knew the stock market wouldn't stay on fire forever. Even after the huge correction, I'm still way better off today than I was 12 months ago. I'm also a long way from being able to retire, so I'm definitely in it for the long haul.
     
    Top Bottom