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Stock market decline

Discussion in 'The Dungeon' started by sheepofblue, Dec 23, 2018.

  1. sheepofblue

    sheepofblue Well-Known Member

    All over the news they blame TRUMP but does anyone else notice it started just before the democrats won the house? Maybe we should as the party economist Cortez
     
  2. Fonda Dix

    Fonda Dix Well-Known Member

    The same who blame him now gave him no credit for its rise. F those unAmerican taking garbage heads.

    Blame the fed. They are destroying the strongest economy in a generation, on purpose
     
  3. Clay

    Clay Well-Known Member

    I quite enjoy looking at the fed rates and the sitting pres. Almost makes you go "hmmmmm". That being said, the market goes up and the market goes down. We've been in bubble for some time. Trump or Obama, I don't believe it can sustain its current level.
     
    sheepofblue likes this.
  4. sheepofblue

    sheepofblue Well-Known Member

    Good points but I think this is just a normal correction with the media trying to talk it into a crash (like the Bush recession that they ranted on for 2 years). Hard to look but I have changed/sold nothing LOL
     
  5. Dave K

    Dave K DaveK über alles!

    I wonder if Obama is going to try and take credit for the decline like he did for the insane rise?
     
    XFBO likes this.
  6. G 97

    G 97 Garth

    Fed way to aggressive in raising rates.
     
  7. beac83

    beac83 "My safeword is bananna"

    We were overdue for a correction, or even for a bear market, which it seems we are now entering.

    The President affects the markets only in that he/she can provide the veneer of stable, responsible leadership. That reassures investors that there won't be any sudden changes, and the markets then react by expecting some level of certainty. When a President takes actions that cause investors to believe there may be instability in the economic present/future, then markets react by getting bearish. Markets hate uncertainty.
     
    sheepofblue likes this.
  8. auminer

    auminer Renaissance Redneck

    Bubble's been inflated, then over inflated for about 8 years now.

    The fed raising rates will kill it. It's not Trump. It's not Bamajelly. It's the Fed.

    But just try to explain any of that to any TDS'er or Blind Trumper.

    We're all being led around by the nose and only a very few are woke enough to recognize it.
     
    gixxerreese and Lawn Dart like this.
  9. beac83

    beac83 "My safeword is bananna"

    I disagree. The Fed held interest rates near zero while the economy recovered, and perhaps failed to raise the rates back to traditional norms soon enough.

    The primary way the Fed can affect the economy is via setting the interest rate. When you are near zero, you have no ammunition to deal with a downturn. Overly low interest rates also make it too cheap to sit on cash rather than to invest in plant and equipment. Its easy to sit on cash when there is no cost for doing so.

    I'd be much more complacent if the Fed rate were between 3-4% right now. That would give them some leeway in the coming downturn.
     
    Newsshooter likes this.
  10. Motofun352

    Motofun352 Well-Known Member

    Hmmmmm, you sure about this?
    High interest rates pull cash out of the market and into interest bearing instruments and out of stocks. Plus high interest rates (I'm not saying 3% is high) tend to make capital investment difficult due to the cost of borrowing.
     
  11. G 97

    G 97 Garth

    Of course they need to go back up, we all know this. But doing it as aggressively as they have has had a negative impact on the market. Evidently a lot of people felt perfectly OK of not only sitting on cash but moving more into cash and away from equities and stocks as the Fed continued to aggressively raise rates.

    Seems as if a lot of others seem to think the same.
    https://www.google.com/search?sourc.....0j41j46j0i131j46i131j0i10j0i155.TEGFnSSrKzg
     
    Last edited: Dec 23, 2018
  12. tiggen

    tiggen Things are lookin' up.

    Yeah, but the interest payments on the INSANE debt they issued was more palatable. We are so fucked. Like 20xIDB fucked.
     
  13. Dave K

    Dave K DaveK über alles!

    The Fed should have raised rates 4 ~ 6 years ago but the market couldn't have taken it (and dopey legacy would have suffered) . The rate increase is way over due and yeap, there's a correction coming. Tech stocks have been criminally inflated while traditional, long terms, rescission proofs traditionals have been growing but under supported.

    If you tied up your retirements in facebook, alphabet and even apple, I hope you have change in a jug somewhere around the house.
     
    ChemGuy and GRH like this.
  14. GixxerBlade

    GixxerBlade Oh geez

    Short Amazon
     
  15. Dave K

    Dave K DaveK über alles!

    How is the market valuation of facebooks at it's IPO greater than the worth of GM? Stupidity? I'd say criminal greed.
     
    gixxerreese likes this.
  16. jrsamples

    jrsamples Banned

    about a month ago.
     
  17. jrsamples

    jrsamples Banned

    It has been interesting to watch. Many of the analysts on biz networks said we were at the bottom 2 weeks ago. They said there would be a strong bump before the end of the year. They said that all fwd indicators were positive. I could find no bears. They were all wrong.

    IMO the market uncertainty is 20% based in the expansion being long in the tooth and 80% based on the shit show that starts on 1/21/19 and where that rabbit hole leads.

    I made the mistake on buying some quality stuff on the way down so it looks like I will be sitting on them for a while.
     
  18. jrsamples

    jrsamples Banned

    Short Harley is still a good move. It has a long way to fall to reach its real value.
     
  19. superdino

    superdino Naturally aspirated twin-turbo

    Can't we get another tax cut for the poor billionaires so the trickle-down will drastically increase wages for the workin' man?
     
    SuddenBraking likes this.
  20. Dave K

    Dave K DaveK über alles!

    You see a lot of profit taking going on right now with chinese money heading out to "areas" in case of collapse of the export market. Don't think wrong, Trump has them scared shitless and there is panic at a lot of chinese companies whose main market is to the US. They were already starting to face insolvency but they are being propped up by the PRC.
    The up and comers in SEA are drooling while mainland is shitting twinkees.

    The dominoes are falling fast.
     

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