DOW JONES GIVES BACK GAINS, PLUNGES 317 POINTS
The Dow Jones industrial average plunged by a whopping 317.06 points (1.8 percent of its total value) on Thursday, erasing the gains it made during the last two months and putting the index in the red for 2014. Meanwhile the Nasdaq was down 98.13 points (2.09 percent) and the S&P 500 was down 38.41 points (1.95 percent).
That’s surprising news considering the relatively solid gross domestic product number the U.S. economy put up earlier this week.
So … does this mean the “Bears” are back on Wall Street?
That remains to be seen. Thus far stocks have been immune to the sluggish “recovery” in jobs, incomes and consumerism. The Dow in particular has been scraping the stratosphere – hovering at or above 17,000 points for the better part of the last month. In fact market gains wildly outpace the growth of the broader economy – prompting many analysts to warn of an impending crash.
Errr … “correction.”
A brutal month for European stocks – including a 1.7 percent drop in the Stoxx Europe and a 4.3 percent decline in Germany’s DAX didn’t help, nor did the imminent default of the Argentinean government on the debt it owes a number of hedge funds.
We hope stocks stay strong … just as we hope for a rise in economic output, employment and wages. Theoretically, that would mean a reduction in dependency. Of course as we’ve pointed out ad nauseam in the past, that’s not the road down which our “leaders” are taking us.
34 comments
Yeh and when the market rallies in the next thirty days or so?
You wont read about it here!
“You wont read about it here”
Ain’t that the damn truth!!
The Fed is going to stop printing money in the next few months.The stock market is artificially inflated. Interest rates will rise in the next few months and those with adj. mortgages will be ‘underwater’. Another housing crisis is on the horizon.
Who writes your scripts? Every thing you post is old and treadworn.
You remind me of the shoeshine boys on Wall Street back in the day……everything they spouted was always yesterday’s news.
lol…it is always the TRUTH and that is what bothers you.
Reagan taught us that deficits don’t matter.
So true! The last real attempt to balance the budget was under Carter, and he wrongfully lives with the moniker as one of the “worst Presidents ever”…up till Bush the Dumber & Obama that is.
He was also the first guy who trusted Americans to conserve energy as a matter of enlightened self-interest instead of government imposed rationing – another libertarian ideal which crashed and burned.
I agree, control is the answer.
The problem with altruism is the same as libertarianism – everyone has to be altruistic, or it doesn’t work.
“The problem with altruism is the same as libertarianism – everyone has to be altruistic, or it doesn’t work.”
Well, in continuation of a separate discussion with you that I was too tired to finish, that is where we somewhat disagree…if enough(it will never be all) people accept a basic principle, the non-agression principle for example, you might be able to minimize the bad actors. (no principle, system, etc. will eliminate them, to your point, I agree)
The problem is that if you give power to sociopaths with the notion that you can somehow control them, it eventually falls on its face…even yet…some people that start out with good intentions with unlimited power end up at the same place(sociopaths).
So the libertarian thought is not one of utopia(for actual libertarians, that have brains anyway), it’s really trying to even the proverbial playing field by the removal of centralized(and concentrated) power-the worst of which is government(IMO, obviously I know you disagree).
Corporations that have to compete for a dollar from the average Joe in any area are a good thing for the average Joe, it’s an equalizer.
We can see our own gov’t rife with sociopaths that are also beholden to crony capitalists….you remove the power of government and you also cut the knees out from the rent seeking businessmen….
That’s a little different from the Communist philosophy of removing government, using government power…after getting everyone to share everything and abolishing private property(which really is utopian!)
Will libertarianism ever happen on any grand scale? Who knows, but it’s far from utopian in concept.
The stock market has been artificially inflated for the past two years. Most successful people I know have pulled a lot of their money out of the market because the run is almost over from what they’re saying.
I’m not a market timer, and I’ve ridden it as long as I feel comfortable. I’m now cashed out, but the conundrum at this point is whether to convert the proceeds to another currency or start buying metals. As I commented in another thread, I’d like to buy real property but it would be idiotic to do so now with another crash looming.
How does a 1.8% drop equal a super sell off? What is an ordinary sell off? The market has been down this much several times this year.
Plunging or correcting is 3000 points……….300 points might have meant something when dow was at 10000, but is a bump at 16800. I think I rode it to the top, sold all my holdings 2 weeks ago. But will buy back at 15,000.
Actually it confirms the old saying: “Buy the rumor and sell the fact.”
You’re welcome.
buy on the rumor sell on the news
The Cash Bust? Pumping federal money into the stock market can only prop it up for so long. I wonder how many of Obama’s cronies became billionaires off QE, while we struggle?
Gee, I was hoping it would go to 30,000 without a correction!
Fits is only publishing this to counter yesterday’s news about an expanding economy.
If a Republican were President he wouldn’t have even mentioned it.Not that He is a Republican mind you.(heh heh heh)
I remember you were right there when he was denying being a Republican to me, the first week I showed up here.
There’s a storm coming…
http://www.youtube.com/watch?v=zTzh8uhnlqc
http://www.youtube.com/watch?v=e2Fzu0vXU8g
I am waiting for Sic Willie to tell us how it is all Haley and Graham’s fault but Ron Paul and T-Rav know how to fix it. But first we have to vote for T-Rav.
Major Cat 5 storm looming over the horizon. Anyone who monitors what is going and knows history on sees it.
If this was an over-reaction to the 2Q spike in the Employment Cost Index, it will show how stupid “the market” can be at times. The 2Q ECI gain of 7% should have been evaluated in light of the 1Q gain of less than 2%.
The Fed is going to look at the trend lines, not some noise in the signal. There have been bigger swings in the past.
But, hope springs eternal in the fevered minds of those who have been flat wrong for more than five years about inflation being right around the corner.
That’s right Joker:
http://2.bp.blogspot.com/-PrzVlWb9uwU/U9CdaXhBQrI/AAAAAAAARgk/akOwUmVUxBM/s1600/Food-Prices-Since-Sept.-2013.png
Would it feel better if it were called,”profit taking”?
The stock market is not a measure of the economy.
At least that’s what Bushies used to say with conviction.
OK… I’ve had enough of this shadow boxing shit! Who are these ghosts that don’t have icons.. and come out of the gloom with private activity handles? Yep! Egghead libertarian , Funny Sic one, Oops!, well now…, Nope, nah,. Ha! Guilty as charged , likeyourtats, Webejammin, Good Luck! , Correction, Media spin helps the war cause ..
are some of these Will Folks? I get the feeling that some of these are the same guy. At least three of them seem like the same guy with the following characteristics.. libertarian, passive-aggressive, wily, secretive..
Maybe you’re just paranoid.
:)
No.. one of you fuckers are ghosts! is ghosts.. are a ghost… damn…
Dude, you got a Joker icon next to your name, paranoia Fits!
Embrace it, don’t reject it. A lot of people have good reason to be paranoid.
There *was* a vibration!