The Official Dow 7000 thread

[manu1959]

The market sold off today, March 5, 2009 because of the statement out of General Motors--"after the bail-out" that Chapter 11 was in site.

They will now be requesting more tax-payer dollars to stay afloat.

yep and they keep pumping money into a failed business.......

now if they let them fail then others would by the assests and move on......but no we need to save the unions and a failed banking experiment....

 

[wimpy77]

i think he wants to what bill clinton wanted to do. the problem is i think some moderates in the senate are gonna fight him on alot of stuff in the budget and if he doesn't watch out he will get hurt next year in the mid term election.

 

[manu1959]

My hair dresser told me she wouldn't buy in until the DOW hit 4000 & I laughed. Maybe, she's right!

i am thinking 3 grand.....

 

[editec]

John D. Rockefeller claimed that he decided to get out of the market the day his bootblack (that's a shoeshine boy for those of you not up on your early XXth century vocations) was touting his daily stocks picks.

 

[Toro]

I don't invest based on extreme events. Rather, I scale in and out as we approach the extreme event because no one knows what the extreme event will be. You may wait to buy at 4000, but what if it goes to 5000 and no lower? During the Depression, when the market bottomed, it went up 180% in three months. Such a move would put the Dow at 14,000. Similarly, if you waited to sell tech stocks at 5500 on the Nasdaq, you are still waiting.

What I know is that any time the market has become as cheap as it has today, then returns have been very strong over the next decade, even if the market goes lower from here. America has faced far worse, and we somehow survived. I imagine we will survive this, as well.

 

[DavidS]

The market sold off today, March 5, 2009 because of the statement out of General Motors--"after the bail-out" that Chapter 11 was in site.

They will now be requesting more tax-payer dollars to stay afloat.

I've been waffling on this one for a while.... but....

Ford doesn't need a bailout.

Why not?

They listened to their customers.

They re-designed the Explorer in 2002 to become the first SUV with 4-wheel independent suspension. They launched the focus, one of the best small-vehicles ever created which has been lauded by consumer reports, motor trends, jd power, you name it. The gave the Expedition 4-wheel independent suspension and stopped production of the Excursion. They created the Fusion, which again... everybody loves, have kept the Taurus line for decades... they have the best selling pick-up truck the f-150... what more do you want? An American car company that listens to its customers. And the new Ford Fusion hybrid... again, rave reviews.

What the fuck has GM done? The cavalier anyone? They made shitty cars that got terrible gas mileage. The only good thing they did was revise the Cadillac line a few years back and came out with the CTS and other followers. But they over-expanded, created Saturn for some unknown reason, bought other foreign car companies and turned them into garbage... GM does not create good cars and they don't care about their customers.

I'm not sure if a GM bankruptcy is a bad thing. They've already laid off tens of thousands of workers. Parts companies have already had time to brace themselves for this. I think it's time GM went under. Any company that thinks what its customers want and don't want is irrelevant does not deserve to exist. These brands don't belong to us - the corporate executives. They belong to the consumers who love them.

 

[wimpy77]

I don't invest based on extreme events. Rather, I scale in and out as we approach the extreme event because no one knows what the extreme event will be. You may wait to buy at 4000, but what if it goes to 5000 and no lower? During the Depression, when the market bottomed, it went up 180% in three months. Such a move would put the Dow at 14,000. Similarly, if you waited to sell tech stocks at 5500 on the Nasdaq, you are still waiting.

What I know is that any time the market has become as cheap as it has today, then returns have been very strong over the next decade, even if the market goes lower from here. America has faced far worse, and we somehow survived. I imagine we will survive this, as well.

i don't think its a question of whether we survive or not. i think we will but i beginning to ask myself the question what long term damage are we doing. doug kass posted an article on the the thestreet.com saying companies should stop laying off people. i don't know if that will happen but it would be nice.

 

[wimpy77]

The market sold off today, March 5, 2009 because of the statement out of General Motors--"after the bail-out" that Chapter 11 was in site.

They will now be requesting more tax-payer dollars to stay afloat.

I've been waffling on this one for a while.... but....

Ford doesn't need a bailout.

Why not?

They listened to their customers.

They re-designed the Explorer in 2002 to become the first SUV with 4-wheel independent suspension. They launched the focus, one of the best small-vehicles ever created which has been lauded by consumer reports, motor trends, jd power, you name it. The gave the Expedition 4-wheel independent suspension and stopped production of the Excursion. They created the Fusion, which again... everybody loves, have kept the Taurus line for decades... they have the best selling pick-up truck the f-150... what more do you want? An American car company that listens to its customers. And the new Ford Fusion hybrid... again, rave reviews.

What the fuck has GM done? The cavalier anyone? They made shitty cars that got terrible gas mileage. The only good thing they did was revise the Cadillac line a few years back and came out with the CTS and other followers. But they over-expanded, created Saturn for some unknown reason, bought other foreign car companies and turned them into garbage... GM does not create good cars and they don't care about their customers.

I'm not sure if a GM bankruptcy is a bad thing. They've already laid off tens of thousands of workers. Parts companies have already had time to brace themselves for this. I think it's time GM went under. Any company that thinks what its customers want and don't want is irrelevant does not deserve to exist. These brands don't belong to us - the corporate executives. They belong to the consumers who love them.

you have to think of the overall picture here. my fiscal mind tells me to let them go under. but i also know that even though part makers have prepared they will be more massive layoffs. but i think because of the grilling bernanke got they government just might say no.

 

[Ravi]

Obama today said, when asked about the unemployment figures tomorrow, that "they're going to be bad."

No wonder the market sold off!

Barack, my man, you gotta be a wee bit more savvy than that!

Toro, do you have a link for that? I'd like to at least read or see that for myself.

No, a salesman told me that today.

 

[Care4all]

Where have all of these people that have sold off and gotten out of the Market gone with their money?

Where did they invest it, once out of stocks?

 

[editec]

Where have all of these people that have sold off and gotten out of the Market gone with their money?

Where did they invest it, once out of stocks?

Government and municipal bonds would be my guess.

 

[American Horse]

GE is becoming a good deal at current prices. I have my price alert set for $5.00/share and thought I'd never see it, but yesterday it was down to $5 and change. We last sold 600 shares 10 October 15 2007 at $40/share leaving us with 400; the purpose of the sale was to pay federal taxes. We may soon buy back those 600 shares back for $5/share.

Those 1000 shares grew out of $15 a week payroll deduction totalling only about $300 at GE during 71-72. So now that it's price is down from $58/share in April 2000 when my bride said "we need to sell that GE Stock." At the time I said "No wait....Bush is going to cut cap-gain-taxes and we'll save a bunch by waiting."
...

You must have saved a bundle in taxes, I'll wager.

Your bride must be so pleased.

With my post I was trying to point out the folly of basing these decisions on tax policy, but that yet we end up making decisions based on tax policy. Hoping for an improved tax disposition I waited to sell, but a tax obligation forced a sale at a less propitious time than I would've made earlier; mainly we make less than common sense decisions because they are forced on us by a tax policy of little common sense.

and PS. she's just happy that we sold at $40; she's very forgiving. That's one of the reasons she's still my 'bride' after 44 years.

 

[DavidS]

No clue why stocks rose when unemployment was .2% worse than they expected. Stocks are slightly down now and should stay down unless people are tired of selling.

 

[Valerie]

No clue why stocks rose when unemployment was .2% worse than they expected. Stocks are slightly down now and should stay down unless people are tired of selling.

I think I'm going to just spend the day thinking about gay marriage and forget about looking at the market all together.

Oh, yeah I have work to do anyway.




Remember the climb to Dow 12000 ? Aaahh.....Those were the days!

FWIW, I think they're just trying to scare the crap out of us, take as much as they can, show Obama who's boss, and eventually things WILL take a turn for the better soon.

 

[Ravi]

I'm buying today, myself.

 

[Valerie]

I'm buying today, myself.

Excellent! What are you buying, if you don't mind me asking?

My husband and I have been buying in our ROTH IRA accounts.

DIA, SPY, QQQQ, EWJ, CAT -- and I like the American Funds.
https://www.americanfunds.com/default-home.htm

My SEP IRA is still entirely cash for a year and a half now, and at the moment and I'm driving myself nuts trying to decide what to do with it.

 

[Toro]

No clue why stocks rose when unemployment was .2% worse than they expected. Stocks are slightly down now and should stay down unless people are tired of selling.

Because people were expecting worse.

But the market opened up and immediately they sold it. There is still liquidation going on.

 

[Ravi]

I'm buying today, myself.

Excellent! What are you buying, if you don't mind me asking?

My husband and I have been buying in our ROTH IRA accounts.

DIA, SPY, QQQQ, EWJ, CAT -- and I like the American Funds.
https://www.americanfunds.com/default-home.htm

My SEP IRA is still entirely cash for a year and a half now, and at the moment and I'm driving myself nuts trying to decide what to do with it.

An accounting error turned up some moolah that should have been paid out in dividends last year...so I'm putting it in the old retirement account with Fidelity...so the tax man doesn't eat it up.

 

[wimpy77]

No clue why stocks rose when unemployment was .2% worse than they expected. Stocks are slightly down now and should stay down unless people are tired of selling.

i think at some point there has to be sellers exhaustion.

 

[DavidS]

No clue why stocks rose when unemployment was .2% worse than they expected. Stocks are slightly down now and should stay down unless people are tired of selling.

Because people were expecting worse.

But the market opened up and immediately they sold it. There is still liquidation going on.

They were expecting 7.9, I thought?