stusi
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posted on July 15, 2002 09:50:47 AM new
As Dubya was speaking today about all the positive signs being exhibited by the economy, the markets were sinking to new lows. It seems that people do not believe that he can undo the harm done nor ensure the future lack of same. A 2% savings account looks like a better bet than the stock market.
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junquemama
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posted on July 15, 2002 10:25:34 AM new
Untill the big boys give the money back,And some hard time handed down,No one with any common sense is going to trust anything Bush has to say.
He really needs to put someone else in front of the cameras.
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Borillar
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posted on July 15, 2002 10:30:02 AM new
Investor confidence is also a method of protest. No one there believes that Bush tells the truth. No one there believes that Bush will do anything to prevent a crash. No one there believes that Bush even WANTS a healthy, robust economy. And people are pulling their money out of anything that doesn't seem like a sure investment. In the long run, this will mean more jobs lost, a larger burden on the taxpayer, a continued loss of revenue to the Treasury meaning that Bush will borrow more and get us even deeper into debt with foreign nationals and foreign interests.
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DeSquirrel
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posted on July 15, 2002 10:42:12 AM new
There is nothing "wrong" with the stock market, it is just returning to normal.
You people have been buying stock at prices many times a companies worth. When all of a sudden the market returns to it's senses there is a problem. For the past few years I've been taking heat from friends who tell about all their great stock "deals". When I asked my friend the broker he replied they were crazy because the stock was so hyped it was all going to collapse. Well, welcome to reality.
Seems that all my friends with the triple digit gains have seen it all wiped out.
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antiquary
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posted on July 15, 2002 10:59:04 AM new
Except for a smaller annuity each that is tied to the stock market, my wife and I both took everything out of stocks about a year and a half ago. All bonds, long-term CDs, and money markets.
It's a shame that it takes a stock market crash to make people start scrutinizing the present administration. 
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stusi
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posted on July 15, 2002 10:59:31 AM new
It is not normal for the market to remain on such an extended downturn when economic indicators are positive. The corporate "crimes" have had a greater effect then the buying of overvalued stocks in general.
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gravid
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posted on July 15, 2002 11:14:55 AM new
There is just NO way to tell if you are at risk. People will take risk if they are aware of it and can make a judgement about it. But here we are talking about hidden risk that comes like a bolt out of the blue. In fact if your investments are doing well you have MORE reason to worry! They may be inflated earnings.
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DeSquirrel
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posted on July 15, 2002 11:32:51 AM new
You guys are really funny. This "crash" has been going on for 2 years. And while the current scandals have made a significant dent in confidence, this is transitory and NOTHING compared to the overvalue "bubble". My broker has been predicting this bubble burst for 2 yrs. Any broker worth anything could have told you buying X was a crapshoot and that the hammer would fall. Greed eventually loses.
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stusi
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posted on July 15, 2002 11:41:57 AM new
This goes beyond the high tech bubble burst. Not all other stocks were overvalued. Many non-tech blue chips were reasonably valued. What has happened in the past few weeks is not a "high tech" problem but a confidence problem directly related to the corporate crimes. The Dow is now down 430 points. Do you really think this is a panic selloff due to overvaluation? Or a lack of confidence to Cheney's lack of accountability etc.?
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junquemama
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posted on July 15, 2002 11:43:50 AM new
Huge companys folding and going bankrupt isnt my idea of transitory.Lower stock I can see,Companys folding because of fuzzy math was not expected by the public.
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REAMOND
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posted on July 15, 2002 12:06:02 PM new
There is a difference between an "adjustment" and a "crash".
The tech "bubble" bursting was a very predictable and sound adjustment. It was based on selling off highly speculated companies that had no profits nor would ever likely have them, and some companies that in reality had no product. It was not based on unknown varibles.
There is nothing wrong with buying a stock at 50 times earnings that is consistently showing earnings growth.
However, current sell-off is based on a huge troubling and undiscernable varible- how wide spread and how large are the accounting "irregularities"? The index on these DJI stocks were not based on wild speculation, but rather on "figures" that included both profits and growth.
What will stem the current sell-off is independent confirmation that companies' figures are true. That isn't happening, yet.
Another troubling aspect is that the sell-off appears to be largely individual investers selling off their mutual fund holdings. This may give those with patience and discipline a huge buying opportunity with a huge upside.
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DeSquirrel
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posted on July 15, 2002 12:16:25 PM new
The bubble has nothing to do with "high tech" stocks. A company has a certain value and earnings. If that is $10, and the stock is $50, then you have a bubble.
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gravid
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posted on July 15, 2002 12:18:48 PM new
Markets are all cyclic and you expect rise and falls - but this is not a normal part of the cycles. This is a crisis of confidence in the whole system due to corruption.
The public has grown very cynical about executive compensation and politiocal morals but as long as they still had earnings themselves and personal safety they could look the other way for a little person looting and dishonsty in public life.
But now they don't feel safe in their savings or their person. Everything is at risk and the looters are walking away with millions while common middle class people are stripped of their retirement. Yet here are tremendous jack asses says all is well - stay the course and keep investing and supporting us. Hah!
Fat chance.
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DeSquirrel
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posted on July 15, 2002 12:24:45 PM new
Reamond
Exactly.
And when the fervor dies down, the people in the know will clean up AGAIN. A few months ago I moved 90% of my 401K to bonds when the market shot up. Now I'll wait for my broker's advise and probably move a big chunk back to stock.
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REAMOND
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posted on July 15, 2002 12:33:18 PM new
The bubble was in the tech stocks. The valuations on the Dow were based on profits and growth figures- figures, some of which were intentional lies.
If there were a "certain value" to a company, there would be no stock market.
How do you find a "certain value" to a company that books 10% growth per quarter ? Markets price forward, not backwards.
It is one thing to value a company that pays a 6% dividend and has a 10% growth rate, and is quite another thing for a company to lie about both profit and growth figures. This situation has nothing to do with a speculative bubble. It has a lot to do with criminal fraud.
It also appears today that individuals liquidated their mutual funds to a $400 DOW drop, and someone has come in to buy those stocks back up to $170 drop.
This panic is by the little guys. It is not a bubble bursting when you have big MO and others driven down to a 6% dividend return.
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snowyegret
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posted on July 15, 2002 12:33:28 PM new
Everything is at risk and the looters are walking away with millions while common middle class people are stripped of their retirement. Yet here are tremendous jack asses says all is well - stay the course and keep investing and supporting us. Hah!
Maybe when all money out is classed as expenses, i'll regain some trust.
You have the right to an informed opinion
-Harlan Ellison
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REAMOND
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posted on July 15, 2002 12:42:01 PM new
Maybe when all money out is classed as expenses, i'll regain some trust.
You can thank Trent Lott and the Republicans for part of this problem.
Clinton and the Dems tried to pass legislation to force companies to expense stock options. Lott and the Republicans blocked it.
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Helenjw
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posted on July 15, 2002 12:43:06 PM new
"He really needs to put someone else in front of the cameras."
Maybe cuddle up and hide with Cheney.
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Helenjw
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posted on July 15, 2002 01:04:13 PM new
Stocks Continue Slide as Mistrust Plagues Markets
NEW YORK (Reuters) - Plunging confidence slammed stocks on Monday, yanking major market gauges to 1997 levels, as reports of accounting investigations, widespread mistrust of balance sheets and a weakening U.S. dollar plagued the market.
"I feel like the captain of the Titanic -- where did all this water come from?" said Tom Schrader, head of listed trading for Legg Mason Wood Walker Inc. "There are few sectors being saved from the damage."
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Linda_K
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posted on July 16, 2002 10:49:55 AM new
A friend sent this yesterday as our stock market was taking it's 'wild ride'.
Market Terminology
BULL MARKET -- A random market movement causing an investor to mistake himself for a financial genius.
BEAR MARKET -- A 6 to 18-month period when the kids get no allowance, the wife gets no
jewelry, and the husband gets no sex.
MOMENTUM INVESTING -- The fine art of buying high and selling low.
VALUE INVESTING -- The art of buying low and selling lower.
P/E RATIO -- The percentage of investors wetting their pants as the market keeps crashing.
BROKER -- What my broker has made me.
STANDARD & POOR -- Your life in a nutshell.
STOCK ANALYST -- Idiot who just downgraded your stock.
STOCK SPLIT -- When your ex-wife and her lawyer split your assets equally between themselves.
FINANCIAL PLANNER -- A guy who actually remembers his wallet when he runs to the 7-11 for toilet paper and cigarettes.
MARKET CORRECTION -- The day after you buy stocks.
CASH FLOW -- The movement your money makes as it disappears down the
toilet.
YAHOO -- What you yell after selling it to some poor sucker for $240 per
share.
WINDOWS 2000 -- What you jump out of when you're the sucker that bought
Yahoo @ $240 per share.
INSTITUTIONAL INVESTOR -- Past year investor who's now locked up in a
nuthouse.
PROFIT -- Religious guy who talks to God
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auroranorth
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posted on July 19, 2002 01:02:06 AM new
roflmao
oh please How about some terms from real estate agents
like
Unique Fixer upper=needs so many repairs they cant sell it legally if they list them all.
secluded=means the county does not plow the last 2 miles of road at all.
farmette=farmer died trying to pay mortgage and bank sold all the land off
better yet How about dating terms
shes coltish= has a face like a horse.
she has a nice personality=needs a bag over head.
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