Quote:
Originally Posted by Bronko
Dow 6,763.29 -299.64 -4.24%
Lowest in 12 years.
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Yes, and all of it has been directly caused by a man that has been in office for 5 weeks or...
While the Dow has a large effect on people due to their investments, it is too emotionally driven at a time like this and I do not value it as representational of anything except how "people feel the economy is today."
With the use of down-to-the-second trades, the Dow has become more of a vehicle for Corporate Finance companies to create wealth when considering day-to-day changes.
The Fed decides not to cut interest rates, the market drops 200 points. The next day, the market "recovers" 250 points - read: the market is undervalued and people buy.
I sincerely feel bad for those that are close to, or in retirement and have a ton of money in the market. They are the ones most effected by this because they do not have the time to wait for recovery. However, in a merely selfish manner, I hope the market keeps tanking - because I'm young and the market falling does not financially affect me. The more it tanks, the more bang I'll get for the money I've been socking away into CDs for the last two years in anticipation of just this happening. When the Dow was over 11,000, my accountant thought I was crazy for not opening an IRA - I thought she was crazy for even making the suggestion. Everyone involved with the Market has been Livin' La Vida Loca - now people are feeling the "next morning hangover."
I think the market is extremely undervalued right now. Professional investors are bewildered as to what the short-term outlook is for the economy and as such, are Shorting stocks like mad. The average investor doesn't have a clue what's going on aside from what the news tells him/her.
I'm holding on to the lapbar and waiting for the ride to end. When it does, I hope I enter the market at about the point when it reaches bottom.