What the heck is going on in the stockmarket?

Been watching the Dow meld down over the last few weeks. Like watching a train wreck in slow motion.

Someone tell me that the US Stock market is not so flimsy that the mere hint of a minuscule rate rise is going to sink the ship?

NOHOME wrote: Someone tell me that the US Stock market is not so flimsy that the mere hint of a minuscule rate rise is going to sink the ship?

It's all automated software trading algorithms, so maybe?

Haven't you been seeing the Ron Paul adds on TV. He's been warning you.

Holy E36 M3, I just checked and I lost a lot of hypothetical money recently... I guess I should have cashed out and moved all my funds into air-cooled 911s when everyone else was.

In any case, I think the rapid decline has more to do with the global economy not being all that healthy than it does with potential interest rate hikes.

Yeah, this is more of an effect of a currency war with China than anything to do with a potential Fed rate hike. The rate hike they have been saying for years they will do, but just not now, but soon. The market has been propped up and hit the recent highs on the basis of nothing but money pumping by the Fed. It is nothing but a casino and not really a market in the definition of the term. Play at your own risk.

Cough! Cough! House of cards. Cough! Cough!

Meh.....unless you're retiring tomorrow its not a huge deal. Time to buy!

Enyar wrote: Meh.....unless you're retiring tomorrow its not a huge deal. Time to buy!

Agree. I've been buying all morning!

Stocks were the last game left after the Fed outlawed interest as retirement income; there are a E36 M3load of retired people who were forced into the stock market who are being wiped out as I watch this wreck unfold. God help anyone on margin calls.

Maybe the US gov will be nice like the Chinese and make market losses illegal or whatever the heck they are doing over there!

World economy is sketchy, US dollar is strong, and China is having issues = speculators are E36 M3ting their pants.

We’re way over due for a correction (sudden 10%+ decline)….it’s a normal, necessary, and ultimately beneficial occurrence.

However, the Fed has been playing god for years…no longer content to just let the system run its natural course, it’s now a contorted product of micromanaged “brinksmanship”. If the economist at the Fed really are as brilliant as they think they are, we’ll be fine, if they’re not, the pent up chaos will be unleashed in all its fury.

As long as you don’t need your invested money for a few years, I wouldn’t worry too much....the US is clearly the best game in town and the money has to go somewhere.

I know what is going on....

EvanR wrote:

Enyar wrote: Meh.....unless you're retiring tomorrow its not a huge deal. Time to buy!

Agree. I've been buying all morning!

No kidding. Kicking myself for not dumping Disney at $120 and picking up more Coca-Cola stock instead. I just wish these market drops coincided with my dividend payment dates. Disney needs to split. I made out like a bandit when Coke split last time. Thank you price perception!

My stuff is all loooooong term anyway. I buy a stock, put it on dividend reinvestment, then forget about it. I've got a few losers (stupid Citigroup) but I won't bother selling them until I need the tax deduction.

I'm using it as an opportunity to pick up big dividend stocks for cheap. Big oil is crashing and I'm pulling the trigger on Chevon at 75 with it's nice fat 5.5% dividend yield.

Trust me from someone who sees a lot of worldwide IT sales numbers, China has been set for a decline for a while now. Russia is hurting really bad. The middle east is now waging economic warfare.

My 401k has been sitting in the money market because A) I'm lazy, and B) every time I think I should move it elsewhere, this E36 M3 happens, and I'm glad it is where it is.

There's also the bit that the US economy hasn't really been able to support the stock market valuations of a lot of companies. Mediocre economy with mediocre numbers for most companies and the only way to prop up earnings per share was/is with huge debt-financed stock buybacks. The buybacks will likely be affected by rising interest rate, so that's another piece of financial wizardry gone.

Man I'm glad to be completely unaffected by all this.

Apart from the Marketwatch game, where I've actually gone up in standings even though I lost a bit more money.

BoxheadTim wrote: ... only way to prop up earnings per share was/is with huge debt-financed stock buybacks. The buybacks will likely be affected by rising interest rate, so that's another piece of financial wizardry gone.

OK, that right there is scary.

I was aware that companies were buying back their shares in order to increase their value. However, I figured they were doing it based on the new $15/hour economy and the resulting cash flow.

IF they are buying the stocks back with borrowed money,at low rates, AND they are leveraged, This could be a very bad thing. In essence you have a bubble with a pin on the inside and the outside.

Thank god I invested all of my money in beer and car parts. Not being on this train makes it interesting rather than scary.

Enyar wrote: Meh.....unless you're retiring tomorrow its not a huge deal. Time to buy!

How's about 3-5 years?

I don't know what you all are talking about

Thank god I invested all of my money in beer and car parts.

This is the only bit I can relate to

Enyar wrote: Meh.....unless you're retiring tomorrow its not a huge deal. Time to buy!

or unless you're already retired and living off the past yrs gains

my retirement account has dropped ~4.7% since the end of April

To answer the question posed in the title: It is fluctuating.

If I were retiring soon, I'd be looking for places to hide my money away from the stock market nowish. There has to be a correction coming soon.

Buy the dip, LOL. Pretty soon the market will run out of suckers.

I would caution those who are prompted to buy too soon. The old adage is: "Don't try to catch a falling knife." I'd wait a bit to see where this thing bottoms out. I have a feeling it's a still got a looooong way to go from here. And beware the "dead cat bounce."

Here is my take on the situation:

We were all meant to be living of a herd that was bought and maintianed by Wall Street. Wall Street was entitled to a profit since they maintained the heard.

In order to maximize the profits, Wall street pocketed the feed money. As a consequence The herd died in 2008.

But, despite knowing this, Wall Street did not tell anyone.

Instead, and in order to keep us in the game, Wall Street demanded that feed (interest rates) be outlawed and enticed investors by feeding them steaks off the carcass crop they had created.

The steaks tasted good, everyone told their friends. The world figured this was working and poured more money into the herd.

Sadly, it was dead.

I have a bad feeling that once these steaks are gone there wont be anymore for a long time.

I have a huge stash of car parts and beer, so I should be ok!