stocks world wide heading down dow -187 today

Question

citing unrest with the worlds second largest economy china, greeces movement to unseat the euros , spain italy and great britians exchanges,
Dow dropped now 700 since mid june peak of 18.1k today large morning sell off stabilized as china seeks to suspend trading to stabilize the panic in its retail investor exchange.
Today alone a near 200 drop in the dow.

nature1970 · Answer

citing unrest with the worlds second largest economy china, greeces movement to unseat the euros , spain italy and great britians exchanges,
Dow dropped now 700 since mid june peak of 18.1k today large morning sell off stabilized as china seeks to suspend trading to stabilize the panic in its retail investor exchange.
Today alone a near 200 drop in the dow.

wallstreetcappers · Answer

Still nothing at all...Market still over 17,000...still way way overvalued.Lets see 8-9-10k, then I will consider purchasing stocks.

nature1970 · Answer

nyse halted all trading hopes to reopen by 3:30
china in a spiralling freeefall time to sell not buy i agree the bottom should be reached by february but short selling the way now .
kindof amoment when you see whats happening and that the inevitable.

Raiders22 · Answer

Easy does it. Sell when others are buying, etc. But if you didn&#x27;t have it to sell early on and take a profit should you be attempting to time it now?

pederson16 · Answer

buy buy buy. market NOT overvalued. significant pockets of value in the market. FED will NOT raise interest rates. market has roughly PE of 18-20, historically once PE levels get to 25 as a whole, then we have a top. We are NOT at that point.

Remember, earnings are higher than ever and cash on sidelines is higher than ever. We are in an extended bull market and YES there will be corrections of 20%+, statistically 1x every 60 months, and 1-2 other pullbacks of 5%+ each year, however that is a buying opportunity.

Don't be fooled. Buyers at times like these get rewarded. Dip your toe, then your ankle, then your knee, then your waist, then to your shoulders. Never go underwater. Dollar cost average in and pick your spots. But BUY at times like these. There have been people on the sidelines since 2009 saying the market was overvalued waiting for a correction....and they are still saying that, having missed out on the easiest 100%+ return of a lifetime.

Good luck

Rush51 · Answer

Well said Pederson .  &#xD;&#xA;I did some buying today of regional banks that have virtually nothing to do with China or Greece.  They fall victim to folks throwing the baby out with the bathwater.  These are the types of companies that will be rewarded when the fed raises rates..  I will wait.

wallstreetcappers · Answer

[Quote: Originally Posted by Rush51]  Well said Pederson .  &#xD;&#xA;I did some buying today of regional banks that have virtually nothing to do with China or Greece.  They fall victim to folks throwing the baby out with the bathwater.  These are the types of companies that will be rewarded when the fed raises rates..  I will wait.    [/Quote]How so?If anything the banks are going to get mashed when the FED raises rates. Thus far they have been borrowing no cost fed funds and buying no risk treasuries on margin, or buying at auction and selling back to the FED for a risk free return.Rising rates are for sure not good for banks of any kind. Lending will get choked more when rates go up, so the regional lenders who are originating and selling loans back to Fannie will see a big drop in mortgage loans and free money via fed funds will be gone.

nature1970 · Answer

feds are going to raise rstes in sept or as late as dec, hopefully sept. however the stocks have been a place to allow greater than nothing interests why fed cut em to begin with. now the medium to retail investor figuring future short sales is the sidewinder no saw coming. these investors can continue to sell short regardless of hedge holds but our markets move very slowly chinas market alot more quickly. but something unseen is here when the all markets are being barraged with over inflated sell offs with no real broker .... almost ai interveneing just saying my humble opinion.world is now being hacked from bejing to nyse. it aint a real  person its more a cyber.... we have safty shut offs but most composites wont realize it aint us its they bots doing it.

Rush51 · Answer

Wall, I would contend that the banks will do better in an environment in which they can charge borrowers more, while slowing the pace of payments to depositors.  The profit spreads should rise, and this is the traditional sense in which banks make money, particularly regionals.  They typically do not  have the hedge fund divisions, commodities trading, or other profit centers that the big banks have.  Regional banks should do fine if the economy doesn&#x27;t tank.  I think part of our disagreement is what the economy will do once the Fed raises rates.  I am not sensing a catastrophe.  The Fed has been trying to walk this dog to the investment community for too long, now, for it to be a surprise.

wallstreetcappers · Answer

Yeah I think as rates go up lending will slow even more, especially with mortgages.

Also as rates go up banks will actually have to start paying interest in deposits and CDs.

And keep in mind that if rates go up, all those bond holdings these banks are carrying and earning interest on using margin will go down in value...they will take losses on government bonds purchased the last few years at these historic lows.

I am not a fan at all of banks, I think they are still levered and many are still hiding their lending losses and are using derivatives to try and goose profits..it wont end well yet again.

JMHO of course

theclaw · Answer

Where do you get that info ?Most tops came with PE well before 25.Only a few extreme periods of overbuying and overreaction has produced PE&#x27;s of 25.The late 20&#x27;s, just before the great depression, the tech boom, and the housing boom. That&#x27;s about it, all other tops were reached before a PE of 25.PE today is 20.33. I will agree that huge amounts of cash on the sidelines makes the PE lower relative to history. Also we have far more tech stocks in the market which trade at higher PE&#x27;s which can cause the PE&#x27;s to trade at higher levels today relative to history.Using the Shiller PE, 2015 began with the 11th highest PE since 1881, over 130 years of PE&#x27;s.This market is not cheap.Stocks can go up with high PE&#x27;s but they go up much slower with smaller gains each year.But the market can still go up and I suspect it will in the longer run. The economy is far from perfect and has alot of potential to improve and investors are buying tommorrows potential today at a reduced price.I also suspect the short term could very well be rocky with a possible huge correction coming, at least 10% to a possible 20% or 25%.Yes it will be a buying oppurtunity if it happens, depends on the news, any kind of bad news, reduced earnings and such will trigger it.Earnings seem to be down, housing market down, but I have not seen the growth outlook going forward. China economy down, when things begin to decelerate with high PE&#x27;s very well could trigger a correction.

theclaw · Answer

I disagree. Rates are at historical low levels, if the Fed raises rates it will be a small amount and will still be at historical low levels.When rates rise it causes people on the sidelines thinking of buying to act quicker before the next raise in rates, it spurs people to buy.Same with corporation looking to expand.And because rates will still be very low even with a rise in rates it will cause more people to buy.Banks make more money when rates rise, the difference between paying higher interest on deposits and making more interest on loans increases.

theclaw · Answer

I keep 100% of my money in the stock market, all my IRA's, eveything except a small amount used to pay bills.

I took money off the table just 2 times, in 2000 at the peak of the tech boom, I was a little late losing a bit before taking 100% off the table.

But what I learned help me take 50% off in 2007 before the market fell and I got 80% back in just after the market bottom.

For just the 3rd time I've taken money off the table, only 15%.

Will get 50% back in after a 10% and the remaining 50% after a 20% correction.

JEFFMARKETCAP · Answer

Elizabeth,   I think I&#x27;m having the big one

Fire_Control · Answer

Grabbed some uvxy puts right at the close. Small position.&#xD;&#xA;Predictions for next week?

wallstreetcappers · Answer

Now only another 6k to go for this bloated market.

First time in a LONG time that some selling came and wasnt rescued by the HFT folks..makes me wonder if they are sitting it out or are on the other side..last few days have been more realistic which hasnt happened in MANY years.

theclaw · Answer

Here we go, the ride may be beginning, things could get alot worse before they get better.

Dragon_Slayer · Answer

$TVIX babyyyyyy

Fire_Control · Answer

[Quote: Originally Posted by wallstreetcappers] Now only another 6k to go for this bloated market.&#xD;&#xA;&#xD;&#xA;First time in a LONG time that some selling came and wasnt rescued by the HFT folks..makes me wonder if they are sitting it out or are on the other side..last few days have been more realistic which hasnt happened in MANY years.&#xD;&#xA;[/Quote]&#xD;&#xA;I agree, it does feel a little different this time.&#xD;&#xA;Just not sure about your FED. It seems to me that they are almost fishing with the rate hike talk. It&#x27;s a weird analogy but I think they are just releasing these statements and seeing how the markets react.&#xD;&#xA;I have been on the no rate hike in sept train for a while but maybe I&#x27;m wrong.

wallstreetcappers · Answer

If the FED holds off and mentions the stock market dropping it will be a total joke.

Nothing outside of a currency collapse should stop them from raising, so if a BIG country has their currency get cracked then maybe..still maybe. The stock market going down, how is that a reason to hold off?

Fire_Control · Answer

Agree. Not a reason to hold off. The FED doesn't want to stir the pot. They ended QE without much damage. They wanted to raise rates for a while but with new issues with asia and oil they can't get away with it.

My guess is they come up with some excuses and use some massaged economic numbers to put it off until December.

wallstreetcappers · Answer

Maybe and if so they will rally the market 300 pts that day..But the future is that rates cannot go down more so at some future point it will happen like it or not.

theclaw · Answer

Another big hit today, there&#x27;s more downside coming. The dow went into official correction mode today off more than 10% of the high.

theclaw · Answer

We did have one more day of downside before the market cam roar'in back, but with lots of volitility.

I still don't see alot of upside in this market from here in the near future anyway.

After the reccesion companies made more money in global markets but now they are making more money domestically.

The US economy is doing better and better but how long can that sustain itself with China effecting other countries like Brazil and Germany and such.

We've seen record profits, can that be sustain going forward by just domestic sales for a expensive stock market to continue going up at a good pace ?

stocks world wide heading down dow -187 today

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