Author Topic: TODAYS MARKET (PLEASE UPDATE)  (Read 864 times)

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Offline bigron

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« on: October 17, 2008, 10:32:44 am »

Index Value: 8,918.64
Trade Time: 11:30AM ET
Change:  -60.62 (0.68%) Down
Prev Close: 8,979.26
Open: 8,975.35
Day's Range: 8718.25 - 9047.36
52wk Range: 7,773.71 - 13,990.70

Offline El Scampio

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« Reply #1 on: October 17, 2008, 10:38:47 am »
How do you see today going on the Dow?

Offline Matt Hatter

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« Reply #2 on: October 17, 2008, 11:01:55 am »
Listen to what he wrote in the NYT! Look at the fear mongering! Buy now before it's too late. That is total bull shit. No billionaire invester would put all their money all in one place, or even in US stocks during a economic recession for that matter. Or give away their big secrets! He just bought Goldman and he wants people to buy US stocks so his shares will go up lol.

Look at his comparission to the US Depression. The Dow bottomed in 1932. Yeah it did, but it took 3 years to get there! Stocks in the US have only been falling for a MONTH!
It's like those stock traders that buy a share and start a rumor that its a good buy and then people listen and the share price moves up because people are buying, when nothing fundamental is actually going on. It's just speculation.

Look at the Dow today! Up 400 points already! I wonder if his rumor caused that? Here comes the short term rally in the stock markets before the next massive down turn.


Buy American. I Am.

THE financial world is a mess, both in the United States and abroad. Its problems, moreover, have been leaking into the general economy, and the leaks are now turning into a gusher. In the near term, unemployment will rise, business activity will falter and headlines will continue to be scary.

So ... Iíve been buying American stocks. This is my personal account Iím talking about, in which I previously owned nothing but United States government bonds. (This description leaves aside my Berkshire Hathaway holdings, which are all committed to philanthropy.) If prices keep looking attractive, my non-Berkshire net worth will soon be 100 percent in United States equities.


A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful. And most certainly, fear is now widespread, gripping even seasoned investors. To be sure, investors are right to be wary of highly leveraged entities or businesses in weak competitive positions. But fears regarding the long-term prosperity of the nationís many sound companies make no sense. These businesses will indeed suffer earnings hiccups, as they always have. But most major companies will be setting new profit records 5, 10 and 20 years from now.

Let me be clear on one point: I canít predict the short-term movements of the stock market. I havenít the faintest idea as to whether stocks will be higher or lower a month ó or a year ó from now. What is likely, however, is that the market will move higher, perhaps substantially so, well before either sentiment or the economy turns up. So if you wait for the robins, spring will be over.

A little history here: During the Depression, the Dow hit its low, 41, on July 8, 1932. Economic conditions, though, kept deteriorating until Franklin D. Roosevelt took office in March 1933. By that time, the market had already advanced 30 percent. Or think back to the early days of World War II, when things were going badly for the United States in Europe and the Pacific. The market hit bottom in April 1942, well before Allied fortunes turned. Again, in the early 1980s, the time to buy stocks was when inflation raged and the economy was in the tank. In short, bad news is an investorís best friend. It lets you buy a slice of Americaís future at a marked-down price.

Over the long term, the stock market news will be good. In the 20th century, the United States endured two world wars and other traumatic and expensive military conflicts; the Depression; a dozen or so recessions and financial panics; oil shocks; a flu epidemic; and the resignation of a disgraced president. Yet the Dow rose from 66 to 11,497.

You might think it would have been impossible for an investor to lose money during a century marked by such an extraordinary gain. But some investors did. The hapless ones bought stocks only when they felt comfort in doing so and then proceeded to sell when the headlines made them queasy.

Today people who hold cash equivalents feel comfortable. They shouldnít. They have opted for a terrible long-term asset, one that pays virtually nothing and is certain to depreciate in value. Indeed, the policies that government will follow in its efforts to alleviate the current crisis will probably prove inflationary and therefore accelerate declines in the real value of cash accounts.

Equities will almost certainly outperform cash over the next decade, probably by a substantial degree. Those investors who cling now to cash are betting they can efficiently time their move away from it later. In waiting for the comfort of good news, they are ignoring Wayne Gretzkyís advice: ďI skate to where the puck is going to be, not to where it has been.Ē

I donít like to opine on the stock market, and again I emphasize that I have no idea what the market will do in the short term. Nevertheless, Iíll follow the lead of a restaurant that opened in an empty bank building and then advertised: ďPut your mouth where your money was.Ē Today my money and my mouth both say equities.