The Stock Market is dropping fast. Heading for a Recession?

[DnPresident]

The Stock Market is dropping fast. Heading for a Recession?

I'm not heavily invested in stocks but a recession effects everyone.

I'm not saying there's going to be a recession but it's heading that way fast.

I don't know where everybody in America works, hell everything you pick up or look at says it's made in other countries. There was a time not too long ago when (1) person in the family could provide for their family. It seems now every family has at least (2) members in the household working and close to struggling.

I think I could get by pretty well for a while if hard times hit but I have some friends that would really have a difficult time I think.

 

[homebuyer]

One Man's Loss...

One man's loss is another man's gain. Look for oportunity where you never thought possible before.

If you have the assets to risk, then wait for foreclosures to wreck the market, and then buy, buy, buy. In 1994, the housing market had bottomed out in the Bay Area. Foreclosures could be picked up then for as little as $13,000 to $30,000 in parts of Sacramento and Richmond, California. There were even a lot of houses for around $50,000 to $75,000 in Oakland. Later on, those very same houses jumped from 6 to 15 times their 1994 value.

If you have a lot of money tied up in stock, then you might want to cut your losses and sell right away. My friend's stock was at 3.37. He had 30,000 shares. I advised him to sell ASAP. He reluctantly did so. The stock is now at 1.65.

If you're a gamlber, and I mean that, now is the time to look at each stock's daily highs and lows. Stocks that seem to drop dramatically overnight sometimes rebound a little unexpectedly in the middle of the day. Buying low and selling high is possible during these volatile times.

You could also buy gold or hide your money in your mattress. And then there is always domaining.

Not all professions suffer during a recession either. Kids don't disappear during these bad times, so teachers seem to do okay. They also have a steady income that allows them to buy those property foreclosures. I know many teachers who, although appearing poor, have big property portfolios that they amassed during a recession.

Lawyers don't always do so bad either. Many areas of practice, like bankruptcy, real estate, securities, personal injury, can thrive during a recession.

Granted, recessions suck for many, but it doesn't have to for you.

 

[Ixix]

The Stock Market is dropping fast. Heading for a Recession?

I'm not heavily invested in stocks but a recession effects everyone.

I'm not saying there's going to be a recession but it's heading that way fast.

I don't know where everybody in America works, hell everything you pick up or look at says it's made in other countries. There was a time not too long ago when (1) person in the family could provide for their family. It seems now every family has at least (2) members in the household working and close to struggling.

I think I could get by pretty well for a while if hard times hit but I have some friends that would really have a difficult time I think.

i saw this comming many months ago, just didn't know when it was going to happen. I think that experts saw this coming a couple years ago, especially from lenders...which is why i believe there was a re write to the bankruptcy laws.

 

[.X.]

We very possibly could be heading into a recession, We are appraoching an election year aswell, I remember the recession in the 1980's, It wasn't a fun time, Things are becoming a "Buyers" market, Not a "Sellers Market, This is great for the millionaires, They vest and wait until it is over, And make HUGE returns, It can be devastating for the middle class, The are the ones who loose thier assets, have to file bankruptcy and lower down near poverty level..It can whipe a family that is lower middle class, To poverty....I think we are a good ways from a reccession right now, I pray we don't go into one, Only time will tell.

 

[homebuyer]

Old Saying

When in a recession, seek shelter in graduate school.

 

[Peter]

If you have a lot of money tied up in stock, then you might want to cut your losses and sell right away. My friend's stock was at 3.37. He had 30,000 shares. I advised him to sell ASAP. He reluctantly did so. The stock is now at 1.65.

I personally believe that to be a bad decision. Stocks are long term investments and they do bounce back again. Look how much the stocks and shares have bounced back since September the 11th when they were at a low for x amount of years. In the last 4 years i think it is the ftse 100 has doubled in value, you cannot get such growth in many other saving schemes. The main danger is if the company the stocks are in are possibly going to go out of business or if there is a possible buyout (although in this scenario you will still get a payout, might not be how much you want however).

This situation which is not just effecting the US is solely the blame of the US housing market and the irresponsibility of lenders. They have now realized that a lot of people they had lended money too cannot pay their mortgages and will foreclose. 1 of the top ten companies in the US has already ceased because of financial problems and there are problems in the largest company in the field as well.

A possible recession will also hit the domain market as well. For example companies will no longer have the budgets for large acquisitions of domains so the potential prices may drop. Also companies may not have the same budget for advertising, if this happens the bottom could start falling out of people who rely on advertisement based revenue.

 

[DnPresident]

Wonder how the market did today. Down more?

 

[hollywood]

Yes, the US markets were down on Thursday, but the Dow recovered fairly nicely by the end of the day. I think there is still tremendous opportunity to make $ in the US stock market if you are selective, sensible, and patient.

 

[holyroller]

I personally believe that to be a bad decision. Stocks are long term investments and they do bounce back again

Not sure that is also good advice, how long to you wait for a bounce and how long do you hold. Some stocks have never recovered to their highs. Yes if the stock pays nice dividends.

Buy and hold strategies can work when stocks are cheap. 90%, maybe more, of people who trade, invest, etc.. lose money. Lots of small losers fund a few big winners.

The Stock Market is dropping fast. Heading for a Recession?

A recession is overdue and they may be the best case scenario. A depression is also possible and that would be much worse.

 

[baseballworld]

which is why I do not invest in the stock market.

 

[Peter]

Not sure that is also good advice, how long to you wait for a bounce and how long do you hold. Some stocks have never recovered to their highs. Yes if the stock pays nice dividends.

Buy and hold strategies can work when stocks are cheap. 90%, maybe more, of people who trade, invest, etc.. lose money. Lots of small losers fund a few big winners.

By all means it can depend on the stock, but in general they are and should be considered a long term investment hence why things such as pensions are invested into them.

The problem with what the op has told him is that he advised to sell now when the prices are tumbling, As can be seen from todays performance they are on their way back up at the moment 9of course yet to be seen if it lasts).

 

[groundctrl]

When in a recession, seek shelter in graduate school.

brilliant! :yell:

 

[Nashfan]

If you have a lot of money tied up in stock, then you might want to cut your losses and sell right away. My friend's stock was at 3.37. He had 30,000 shares. I advised him to sell ASAP. He reluctantly did so. The stock is now at 1.65.

No,no,no,no,no. If you pull your money, you are 100% guaranteed to lose. If you keep your money in stocks, it WILL go up again. In history, no matter how far we've seen stocks drop, they've ALWAYS risen again. The only time you shouldn't wait is if you can't afford to wait (i.e., you're 65+ or something), but if that's true, then youshouldn't have money in a long-term investment like stock.

 

[holyroller]

No,no,no,no,no. If you pull your money, you are 100% guaranteed to lose. If you keep your money in stocks, it WILL go up again. In history, no matter how far we've seen stocks drop, they've ALWAYS risen again. The only time you shouldn't wait is if you can't afford to wait (i.e., you're 65+ or something), but if that's true, then youshouldn't have money in a long-term investment like stock.

You completely miss the point of buy and hold.

Buy and hold is about selecting Quality companies that are currently trading under their market value. You are looking for a discounted market values relative to the current economic value. There will come a point at which the stock is no longer value for money, this is the point that you have to sell.

The stategy you mention involves buying shares without regard for the fundamental value and holding it for the long term, because shares always go up and you are guaranteed to make money <--- This is wrong. Also holding a share which is dropping in value in the belief that eventually it will go up again is also really bad.

Anyway, here is a funny video clip http://blownmortgage.com/2007/08/09/jim-cramer-and-stephen-colbert-on-the-subprime-market/

 

[DnPresident]

You completely miss the point of buy and hold.
Buy and hold is about selecting Quality companies that are currently trading under their market value. You are looking for a discounted market values relative to the current economic value. There will come a point at which the stock is no longer value for money, this is the point that you have to sell.
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I believe Nashfan is correct though, at least as far as statistics go. The market certainly has it's ups and downs but for those who stay invested through the tough times over many years, 30-50 year holders do yield the highest rewards.

 

[kemjika11]

IN stocks, perception is reality. if people are worried, the market gets scarred and rattles., even though there's not always a solid, legitimate for doing so. THe subprime loan issue is souring other stocks, but in the long run, good companies with solid stocks will weather this brief storm. Stocks are a bit temparamental these days. i just started buying stocks 2 weeks ago, and my investment is down 15%, but i'm not worried. I will keep buying as things get lower, because with good stocks, they are bound to rise sooner or later.

 

[Kate]

That's why I invest in domains as they are not subject to inflation :hehe:
They appreciate faster than anything else actually
You don't have the problems associated with stocks or real estate.

 

[Cheapquality]

Anyone knows about PFizer, what happen to Pfizer, 27$ share is now 24$ :o
Intel is going very well 19$ share is now 24$

 

[Smiler]

Anyone knows about PFizer, what happen to Pfizer, 27$ share is now 24$ :o
Intel is going very well 19$ share is now 24$

Wow. I wasn't even aware the stocks for these companies are pointing south. I really hope they rebound. :td:

 

[kemjika11]

Anyone knows about PFizer, what happen to Pfizer, 27$ share is now 24$ :o
Intel is going very well 19$ share is now 24$

Pfizer dropping is good new for those who want to buy quality for cheap. Its in the Dow jones 30(so large-cap stock which can weather downturns), and its yield is a little over 5%. Its a good stock.

Intel is dominating the chip market. Its stock i predict will gradually climb and do well.

:D