Stock Market CRASH Thread....Are we all doomed?

[Shiver]

I think it is inevitable that some variable will have to fail (by that I mean either a crash or the fiat behind it will drop so that it looks like it's going up). If you look at something like the DJIA or S&P from the low of the last crash it appears to have made a great recovery, when in terms of purchasing power it's peak was around 2001 despite what the charts look like.

I think if I had a lot of cash I would be changing it to physical gold for now, even though the paper gold makes it look like it isn't doing well. It's the same value as it has been for a long long time, it's the fiat and manipulation that it throwing the numbers off. The real stuff in your hand is better insurance.

I have Bitcoin and that is suffering at the moment when I would expect it to be counter to the big markets. I'm used to volatility though and don't lose sleep over it as I've made better returns than any other choice I could have made, as I got the timing somewhat right (though far from optimal).

The market will take a crash, that's for sure, but because everyone thinks it'll be a September thing, I wonder if it will happen then or not, and suspect much more likely is that it'll be propped up longer until everyone thinks it was another 'Y2K' tin foil story, then later the next year or something it really does do that.

[Braddockrd]

What goes up will eventually come down. And what goes down will (hopefully) go up one day. Diversify. Keep some stocks. Keep some annuities. Keep some bonds. Keep some cash, preferably in a few different currencies. I have sizeable holdings in RM. These are now only there to earn interest. I spend HKD dollars instead. Pounds sterling invested in properties in the UK. Sing dollars as a reserve currency.

Most of all, don't worry about things that you can't control.

? holdings in RM? SGD as reserve currency? You Need to to take some finance courses my friend....?

[fang37]

Not only those in the sharemarket suffer, property owners in LOS suffer too. There are far less buyers in the LOS property market today.

Solution/remedy?

[F4UCorsair]

Nah, nothing to worry about. Sure, it would have been good to bail out when the Dow was 18000+, and buy back in after yesterday's 1000+ point drop, but many would have been burnt trying that.

I invest for dividends, so it matters little what the share price does, but remember it always recovers, not always quickly, but it does.

Don't sell out at the bottom.

[Gweiloman]

What goes up will eventually come down. And what goes down will (hopefully) go up one day. Diversify. Keep some stocks. Keep some annuities. Keep some bonds. Keep some cash, preferably in a few different currencies. I have sizeable holdings in RM. These are now only there to earn interest. I spend HKD dollars instead. Pounds sterling invested in properties in the UK. Sing dollars as a reserve currency.

Most of all, don't worry about things that you can't control.

? holdings in RM? SGD as reserve currency? You Need to to take some finance courses my friend....?

You misread my post. I am not suggesting to buy RM, merely saying that I have quite a bit of RM which I won't bother selling as I have a need of it. I will definitely not be increasing my RM balance.

SGD is as good a currency to hold as any, if you're resident in Asia. The CHF is already way too high, Euro is still uncertain. Yuan was good but nobody foresaw the sudden devaluation. USD was stable but lost ground in the last week. All in all, currency is very unstable at the moment so if one needs to have liquid cash, best to have a diversified portfolio.

Point is that no one has a crystal ball, so any advice is as good (or bad) as the next. Most important is just to have holding power and ride out the troughs.

[Naam]

China is only 1% down from December last year ....... hardly BIG!

China (Shanghai Composite) is UP 33% since august 25 last year.... not bad at all!

[nithisa78]

your sky.

[Naam]

Anyone who has put their money in U.S. or any other stock market since 2008 with the Fed and the U.S, Treasury trading debt for the electronic printing of worthless money by the Billions and Billions to infuse the stock market is a DIM BULB... There is no such thing as a free lunch... Not to mention the cases of insider trading using all sorts of schemes revealed over the past 7 years ...

And people still trust putting money into the stock market ..!!! Fricken Amazing ...

DIM BULBS are those who missed the chance to make huge profits in a big variety of markets since 2008 and now deal out insults to compensate for their frustration having missed the chances.

[sawadee1947]

you seem to give the impression that you believe USA is somehow insulated from what is happening around the rest of the world?

And yet some commentators are saying that secretly things are so bad because of the unpayable levels of debt (including in USA) that the only way out will be for America to start a war and that those in power realise this.

do you agree or disagree with that kind of viewpoint?

And if there was a major conflict would you continue to own your stocks and would you keep buying?

I don't believe that the US is insulated at all.

As for the rest of it, invest in tinfoil hats.

The UK's debt is about the same as that of the US as a percentage of GDP and yet the UK doesn't have the economic engine to support it. The UK's debt is increasing rapidly as it tries to support all of its "good ideas" which are choking it and yet people point at the US. The increase in US debt has moderated significantly while the UK's has skyrocketed.

Also the UK can and does buy its own new debt while the US can't because it's illegal. Go figure that one out. If you want to look at something scary look at Europe. Asia is an also ran but Europe is a big deal. The Eurozone and the EU are as shaky has hell.

I'm in USD today because... Where else would I be? The value of the USD is only that compared to other currencies and nothing else. We are always "in the market" even if we don't want to be. Our homes, money, other investments all are subject to value cycling. So of course are precious metals. Gold. There is no place to hide.

Those who frighten easily run for cover and often at the wrong time - after values drop. Seriously they do.

The Eurozone and the EU are as shaky has hell.

I don't agree with you. After giving Greece a hair cut the EU is stable. The ARTIFICIAL weak Euro is just for refinancing and paying household debts because of low interest rates.. Export rates are astronomical high and GDP is rissing (UK is isolated in this process and will have to decide to support EU or start a down turn. Cherry picking will come to an end soon)

[ggt]

The US stock mkt has rebounded nicely this AM...but do not get too comfortable...

The future looks bleak for economies around the world...the world has been depending upon emerging economies like China and India to buy up commodities and keep the rest of the world going...not looking good at this time...

Added to the stagnate world economies...trillions of dollars and yen currencies have flooded their nations economies to try and jump start consumer buying...the bulk of the stimulus money has found its way into the stock mkts...causing an artificial bull mkt...which can not be justified or sustained by the nations economy...

This is a no brainer...the markets will be volatile...up and down...with lower highs...and lower lows...the trend will be downward until it is acknowledged that we are in a bear mkt with no one anywhere knowing how to move the world back into prosperity...

We are not all doomed...but adjustments will need to be made...belt tightening may become necessary...unnecessary spending curtailed...

Had a friend lose $2,400. yesterday on a single mkt play...

If you have mining stocks...hold them...you may want to liquidate your holdings in equities when there is a bounce upward...

Good Luck!

Edited August 25, 2015 by ggt

[wonder6281]

Take 25 minutes to watch this video. It explains well what sort of world has been created by debt.

https://youtu.be/aZJyXbSnde4

[Naam]

DJIA: 35% increase over 3 years. It's been a good 3 years.

Dow up since Lehman 2008 +142% but those who invested in stock markets and made fat profits are called "DIM Bulbs"

Anyone who has put their money in U.S. or any other stock market since 2008 with the Fed and the U.S, Treasury trading debt for the electronic printing of worthless money by the Billions and Billions to infuse the stock market is a DIM BULB... There is no such thing as a free lunch... Not to mention the cases of insider trading using all sorts of schemes revealed over the past 7 years ...

And people still trust putting money into the stock market ..!!! Fricken Amazing ...

[ggt]

Just from the analysis I pick up on BBC radio, the predominant thought was a global stock market correction caused by overvaluation. Yet today for the first time mention of a real Asian economic crisis was made. So yes something big going down I'd say.

BBC world business report were interviewing an emerging markets specialist from Société Générale who said what is coming could in his opinion be worse than the Asian economic crisis in 1997 because this time around the declining stock markets and currency depreciations are happening simultaneously around the world even including places like South America.

And i just read this last week

23 Nations Around The World Where Stock Market Crashes Are Already Happening

http://theeconomiccollapseblog.com/archives/23-nations-around-the-world-where-stock-market-crashes-are-already-happening

Good Report and References...

Been personally sounding the alarm for the past year...family, friends, and those fully invested in the stock mkt...most common response is I am a negative doom and gloom person...I respond with "a dose of reality will one day change your attitude",,,

[Skeptic7]

Stock markets, nor any markets go straight up. Wild volatility like this is not the norm. Sure, on paper all of us lost large sums last week and yesterday, but corrections like this are not only healthy for the markets, but create value and buying opportunities. I put a chunk of cash to work in the markets yesterday. Equities are On Sale. The US markets gained 40% of that opening loss back by the close yesterday and futures today indicate a nearly 500 point positive opening.

I'm not a day trader, but the traders who bought AAPL @ $93 yesterday and turned around and sold it @ $115 a few hours later made a bundle.

[Pattaya46]

Between Greece and China news over the past months, if you couldn't smell this market correction coming, you must have been under a rock. I moved everything to low risk investments 3 months ago and still making gains while holding on to 2014's. There is no excuse for missing the warning signs. Beware of greed.

Do you really thing it was worth it?

You lost (or more exactly did not earn) a lot of more in last 3 months

than the 3% correction of the SET we just had.

[Skeptic7]

Well don't complain,,,Stock Market is the Same as Gambling, you don't put anymore money into it than what you are prepared to lose,,,Easy come ,,Easy go,,,One day a rich King the next day a poor bloody beggar/fool,,,

Absolutely bogus analogy. Long term investing in quality companies has made millions wealthy worldwide...casinos have not. The casinos rarely make a single person wealthy and never over the long term, while stock markets create wealth on a regular basis, especially over the long term. Not talking about day trading, as that is the same as gambling.

Pity the people who have avoided investing in equities. Stock markets, specifically US markets, are The Greatest Wealth Creating Engine of all time.

[1FinickyOne]

If this is your first correction, it gets pretty scary - - we have been quite over due for one… but if you ever need comfort, just pull up a 50 + year chart - it goes down and then goes up again...

[midas]

The US stock mkt has rebounded nicely this AM...but do not get too comfortable...

The future looks bleak for economies around the world...the world has been depending upon emerging economies like China and India to buy up commodities and keep the rest of the world going...not looking good at this time...

Added to the stagnate world economies...trillions of dollars and yen currencies have flooded their nations economies to try and jump start consumer buying...the bulk of the stimulus money has found its way into the stock mkts...causing an artificial bull mkt...which can not be justified or sustained by the nations economy...

This is a no brainer...the markets will be volatile...up and down...with lower highs...and lower lows...the trend will be downward until it is acknowledged that we are in a bear mkt with no one anywhere knowing how to move the world back into prosperity...

We are not all doomed...but adjustments will need to be made...belt tightening may become necessary...unnecessary spending curtailed...

Had a friend lose $2,400. yesterday on a single mkt play...

If you have mining stocks...hold them...you may want to liquidate your holdings in equities when there is a bounce upward...

Good Luck!

This is the real elephant in the room................

The Derivatives Market Is Beginning To Crack

Here is just a small sampling of a non bank entity taking a huge loss on a derivatives position. On Friday Metlife reported profit down 21%.The loss amounted to 593 million on derivatives that went the wrong way. Reuters is reporting that the top 5 American banks have a 200 trillion dollar exposure offshore that they parked in 2014.This very morning,the Canadian papers are reporting that the 6 biggest banks carry over 100 billion of gross credit exposure to the oil and gas sector and defaults may ensue.Now might be the time to get some money out of the bank…

http://investmentwatchblog.com/the-derivatives-market-is-beggining-to-crack/

Edited August 25, 2015 by midas

[firestar]

Anyone who has put their money in U.S. or any other stock market since 2008 with the Fed and the U.S, Treasury trading debt for the electronic printing of worthless money by the Billions and Billions to infuse the stock market is a DIM BULB... There is no such thing as a free lunch... Not to mention the cases of insider trading using all sorts of schemes revealed over the past 7 years ...

And people still trust putting money into the stock market ..!!! Fricken Amazing ...

Bought LVS @ $12 sold at $60 today it's still $48, Bank of America in single digits today it's worth more than double...

but yeah we are all "DIM BULBS" for investing since 2008.... should have listened to all the tin hatters on their soapbox and bought bullions, or their favorite silver, so I could have lost half my investment same thing with the guys at the end of the bar.

Whether it's online or at the end of the bar there's always a self appointed expert distilling his knowledge with an air of authority, years later they are still at the same place saying the same thing while we lived a little.

__________

Edited August 25, 2015 by firestar

[Dario]

The crash was announced already months ago. The ones who suffer the most are the day traders who trade risky stocks or warrants and don't clear their positions on time and be out before 16:30 in the SET. But a seasoned day trader who knows how to move well, isn't at risk. Swing trading is also risky when markets are falling, it's best to be out of the market every trading day. That is one of the main rules of day traders. Nobody knows what's going to happen the next trading day. Yesterday the SET closed down -64.55 points (-4.73%). A big bang for the Thai stock market. And I still booked some profit yesterday. I don't mean by this that I'm a good day trader. All I do is learn, learn, learn and be very strict with myself to apply the important rules.

To answer the OP, I don't think that we are all doomed. Some have already lost fortunes during the last few trading days.For most people the very best is to stay out of the market at this bearish time. Some analysts talk of a major correction.

[elgordo38]

Just from the analysis I pick up on BBC radio, the predominant thought was a global stock market correction caused by overvaluation. Yet today for the first time mention of a real Asian economic crisis was made. So yes something big going down I'd say.

I agree with the above and the September time frame looks about right. The economists were all over Faux news today telling people to "Stay the course" "Buy on the dips" and all that other stock jargon. For the sake of disclosure I think these guys are a dime a dozen hacks looking to making a living off of others. Like the Chinese they are trying to talk up the market but it was down again in China. Their government cut interest rates which seems a mute point as most people are up to their ears in debt. They say actual growth in China a closed society could be only 3 to 4%. Europe made a bit of a recovery and the Dow futures are up over 400 points. The Euro and the Yen are appreciating quite the opposite of what their governments want. I am puzzled by their currency rising. I have been through these meltdowns in the past and they are not pretty. I have stood on the sell side of a trade and there were no buyers at any price. I think the technical term for what is happening now is "A dead cat bounce" Brokers, economists are all saying stay calm this has happened in the past but the world is constantly changing and one cannot predict the stock market by looking out of the rear view mirror. While watching said mirror your car could be heading over a cliff. Good luck to all stock holders fasten your seat belt.

[puukao]

If you missed the dot-com boom........everyone saw that happening. so easy to create start-up and make bank

if you missed buying houses cheap from 1970 to 1998.....well, too bad...

if you missed the greatest bull market ever.......well, it was so easy to see

and it would be impossible to not see every market weakness...

bottom line, we all should have billions and billions. if not, how can we really say we know the future?

just buy the low and sell the high.......do it for a few months and retire forever......now how easy is that?

if you have a job, family....just risk 3x.....

Edited August 25, 2015 by puukao

[Asiantravel]

Just from the analysis I pick up on BBC radio, the predominant thought was a global stock market correction caused by overvaluation. Yet today for the first time mention of a real Asian economic crisis was made. So yes something big going down I'd say.

BBC world business report were interviewing an emerging markets specialist from Société Générale who said what is coming could in his opinion be worse than the Asian economic crisis in 1997 because this time around the declining stock markets and currency depreciations are happening simultaneously around the world even including places like South America.

And i just read this last week

23 Nations Around The World Where Stock Market Crashes Are Already Happening

http://theeconomiccollapseblog.com/archives/23-nations-around-the-world-where-stock-market-crashes-are-already-happening

Good Report and References...

Been personally sounding the alarm for the past year...family, friends, and those fully invested in the stock mkt...most common response is I am a negative doom and gloom person...I respond with "a dose of reality will one day change your attitude",,,

" most common response is I am a negative doom and gloom person "

you have nothing to worry about compared to what Damian McBride former adviser to Prime Minister Gordon Brown is telling people to do

though I do wonder what could he know that we don't!? - and he does say " “and what's coming is 20 times the scale of 2008 ”!

Stock up on canned food for stock market crash, warns former Gordon Brown adviser !

http://www.independent.co.uk/news/uk/politics/stock-up-on-canned-food-for-stock-market-crash-warns-former-gordon-brown-advisor-10469509.html

Edited August 25, 2015 by Asiantravel

[elgordo38]

Well don't complain,,,Stock Market is the Same as Gambling, you don't put anymore money into it than what you are prepared to lose,,,Easy come ,,Easy go,,,One day a rich King the next day a poor bloody beggar/fool,,,

Absolutely bogus analogy. Long term investing in quality companies has made millions wealthy worldwide...casinos have not. The casinos rarely make a single person wealthy and never over the long term, while stock markets create wealth on a regular basis, especially over the long term. Not talking about day trading, as that is the same as gambling.

Pity the people who have avoided investing in equities. Stock markets, specifically US markets, are The Greatest Wealth Creating Engine of all time.

Yes the government has created 0 interest rates and monopoly money now much different than the past prosperity you quote. The stock market is the only option for the greedy herd. Stay at the table and roll the dice and don't get trampled by the herd trying to fit through a narrow doorway at the same time. Be careful the dice do not come up craps. One thing I have learned in life things change. Life cannot be gauged by looking out the rear view mirror. In the market the little man always pays taxes and gets burnt. The big guys pay no taxes and make all the money which they should as the whole thing is rigged in their favor.

[Skeptic7]

Yeah yeah yeah I'm not a 'big guy' and I'm "crying" all the way to the bank AND paying very little in taxes!

Long term investing in the greatest companies in the world that also pay dividends is in NO way comparable to a Craps Table. Totally ABSURD statement. RIDICULOUS!

[BuaBS]

No we're not all doomed. Just the ones holding the bag when the music stops.

[stoneyboy]

The stocks fall in facial expressions

http://www.bbc.co.uk/news/world-asia-china-34048459

[whaleboneman]

What goes up will eventually come down. And what goes down will (hopefully) go up one day. Diversify. Keep some stocks. Keep some annuities. Keep some bonds. Keep some cash, preferably in a few different currencies. I have sizeable holdings in RM. These are now only there to earn interest. I spend HKD dollars instead. Pounds sterling invested in properties in the UK. Sing dollars as a reserve currency.

Most of all, don't worry about things that you can't control.

I think you mean "don't worry about things" if you're too rich.

[Friendly Stranger]

Nah, nothing to worry about. Sure, it would have been good to bail out when the Dow was 18000+, and buy back in after yesterday's 1000+ point drop, but many would have been burnt trying that.

I invest for dividends, so it matters little what the share price does, but remember it always recovers, not always quickly, but it does.

Don't sell out at the bottom.

A realist, finally.

This is just clock work, wait until this calms down. When the crisis happened in the states, many thought it was the end. It was not, and still there's warning signs,

But ppl should get a grip, it will not all come crumbling down, yet.

I love how many have said they've sold everything months ago and are currently shorting.

Just look around in Thailand, do you see the locals sweating it, no. It's only the ppl that think life will come to an end if their 7 figure portfolio does not garner double digit returns. Much has changed my thinking when I lived here. I used to work for the brokerages too.

Money is not everything, and that is no cliche.

[WorkingTourist]

Pretty upset with my managed fund, been with them just over 2 years and had close to a 2% for that period, right up to this carnage.

My accountant recommended them because there're conservative and supposedly have the ability to 'turn on a dime' if things go south.

Well, here we are 3 weeks into this crash and no move on their part. I feel stuck now losing so much I almost have to stay with them to try and gain back these losses, if I can even come close I'll be telling them GoodBye.

If your investment only gained 2% over the last two years and is now down then you should move your money. It sucks having to sell before at least breaking even, but with your managers history, it sounds like you will break even much faster by not having them manage your money.

For comparison the S&P 500 index is up 15% compared to two years ago.