Saturday, November 22, 2008, 3:03AM ET - U.S. Markets Closed.
"You can't drop 2000 Dow points [since early May] and not expect some bounce," Barry Ritholtz, CEO and director of equity research at FusionIQ, said Tuesday as the Dow closed below 11,000 for the first time since July 2006.
With the CBOE Market Volatility Index surpassing 30 (intraday Tuesday) for the first time since mid-March and other sentiment indicators showing extreme levels of negativity, Ritholtz is trimming his short positions in financials like Fannie and Lehman Brothers, and adding to longs in areas like software and energy.
As oil suffered its biggest one-day drop in 17 years, Ritholtz said he hopes crude falls into the $105-$110 range so his favorite names like Swift Energy would become attractive again.
But the fund manager and Big Picture blogger is aware that "traditional metrics" of investor sentiment didn't work during the tech bust of 2000-02, and investors must be aware that "normally reliable indicators [can] go to hell" in the worst bear markets. We aren't there by any definition, he says, but the possibility can't be ignored even as the market looks primed for a short-term bounce.
We all need to just calm down, every thing going to be ok, we are STILL the Best. We will come out of this negitive move, there are allways pockets of opportunities in a bear market.
With Bush working on it makes me want to panic. Everything that man has touched has turned to crap so what makes you think he can fix this mess that he created? It will take 3 or 4 good presidential terms to fix the mess that Bush is leaving on Capitol Hill. Put the money into euro/pacific and commodities. Watch out for falling financials beware of catching a falling knife.
aldonati1 - Wednesday July 16, 2008 07:46AM EDT A good measure to stop inflation, is to place import taxes on all products entering the USA. Maybe 20%, since we are not the producer of goods anymore. Then we can reduce income taxes and the american worker by 20%.In essence, replace the income tax, with an import tax, is what I'm suggesting.
America is built on DEBT. A house of cards, get ready for a big fall. Just hope we can survive this. Americans seem to want something for nothing and our govt has given it to them. Borrow, borrow, spend, spend, promise, promise, entitlements, entitlements, were moving in the wrong direction.
aldonati1 - Wednesday July 16, 2008 07:46AM EDT A good measure to stop inflation, is to place import taxes on all products entering the USA. Maybe 20%, since we are not the producer of goods anymore. Then we can reduce income taxes and the american worker by 20%.In essence, replace the income tax, with an import tax, is what I'm suggesting.
Barry is correct in that the metrics dont work in some markets, and that is because the metrics are based on factual numbers. The effect of the media hyper-blowing every metric of sensationalism removes the truth that financial metrics provide and render the market one subject to the effects of public sentiment even when it is not based on truth. Good companies can be shot to hell overnight in equity value because of media sentiment that is not related to the facts of the company, industry and the like, often times written by people who do not know the market. WE
Mutual fuds like Magellon, normally are good producers. Lately, like everything else, they've been in the toilet. Any feelings on how Magellon will do in the near future as well as long term?
Kudos to Raymond, these are traits that our government is encouraging our people to do. Remenber what they told us to do with the rebate checks? Spend, spend spend is their answer. Actually they were concerned that the rebate wouldn't be spent. If my child had a financial problem, (according to our government) my advice to him would be to spend your money, my son, spend it all, and your finances will improve.
We're hosed because of inflation... we're in double digits, and its deplorable that "trusted stats" from uncle sam reflect only part of the picture. What a nation of smoke and mirrors we live in!! Let's see what lies we are fed this week... if you were smart, you would take your cash, buy gold, and shovel it under your mattress!
The chickens have come home to roost.Seven years of war,endless spending by Dubya Dubya II have put America at the brink of disaster.Speculators artificially raising the price of oil,loss of jobs paying a living wage , manufacturing dessimated ,real estate in the hopper.It is only a matter of time before we are all standing in line at the soup kitchen
Oil prices will go up again with the huge demand globally. Buy oil stocks as there is to many positive factors affecting the oil prices. Come on, do you really think the arabs want a cheaper price per barrel. Ya right, we cant trust them with a bottle of Mazola Oil let alone a barrel of oil. Storm season, huge demand, Isreal attacking Iran which hopefully will happen and blow that bleep out of the water will all effect the price of oil. P.S: Dont panic sell, the Usa is still a fantastic growing country. The sky is not falling. Send your replies. Thanks and happy investing.
U.S. dollar is falling………., Gas price is up........, stock market is down............., home prices crashing............., food price skyrocketed............., Can not get a loan anywhere........., Inflation is up……….., Government is bankrupt…………, unemployment is up........, income is down.............., can not afford to see a medical doctor............, rent is up.........., rich person is getting richer........., poor person is getting poorer............, savings from the working stiffs are used to pay the ill-gotten executive bonus.
When BLACK FRIDAY hits, don't jump. That costs money to clean up. Just overdose on your prescribed meds. The county will charge your loved ones the fee for body disposal. Donate your carcass to medical science, that will save your loved ones the cost of your disposal. It will also save cemetary space, and besides science may learn something by looking at all those deffective brains.
Oh yeah, Bush is the one that got loans they could not afford. The one that stopped companies from building refinaries, nuclear power plants, wind farms, themo energy, and coal power plants. No I believe the environmentalist, and democrats are the ones to thank for this situation. As long as I can remember, it has been "the end". But for some reason the end keeps getting pushed off to tomorrow some time. Looks more like the time to make some easy money, what goes down will go up.
On every important issue this administration has been Awol. Energy, Environment, Healthcare, fiscal discipline, diplomacy. The negative attitude shown by this administration, plus those that own the government (the fatcats in financial services and industry) towards responsible policy is criminal. In my judgement, the people that run this country belong in jail. Intelligent, long term planning and the fortitude to tell the American people the truth, namely that our lifestyle and our attitude vis a vis the rest of the world is unsustainable are sadly missing. The wreck that we are now facing is due entirely to our irresponsible behaviour.
sounds like panic to me, Yahoo finance user.
Does anyone else think we should implement controls to buying and selling stocks on Wall Street so that it becomes an investment vehicle and not a speculatory tool?
Bush doesn't want to promote other sources of energy, because he is into oil, and he's trying to force the issue of Anwar.
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Yahoo! Finance User - Wednesday July 16, 2008 08:39AM EDT
The constriction of the economy is due to product inflation not wage inflation which in turn is caused by the fed trying to save the economy by lowering interest rates and bail outs. Go figure. Stocks now that people are afraid to keep cash, wobbly banks stocks may indeed take a turn up. Will it last? Doubt it.