Dow tumbles 1000 points as global stock market sell-off continues - business live

[Restored]

4.6% now about 7% over two days I believe.
If you are buying(i.e. putting money into your 401k), it's actually a good thing.
My broker moved me to a largely dividend return stock portfolio so my stocks are doing pretty well. If you are tired of getting .5% for your savings, AT&T(T) is paying over 5% and T is down almost 4% today.

[ABX]

Oh good grief... I just saw a certain website blaming the crash on a 'deep state conspiracy' and Soros.

[ABX]

4.6% now about 7% over two days I believe.
If you are buying(i.e. putting money into your 401k), it's actually a good thing.
My broker moved me to a largely dividend return stock portfolio so my stocks are doing pretty well. If you are tired of getting .5% for your savings, AT&T(T) is paying over 5% and T is down almost 4% today.

When people panic- buy
When people get greedy- sell

[Cyber Liberty]

-4.7% at closing (1175 drop from 25000)...

Yeah, I was guestimating off the of the headline and comments.    What really matters is, how far is the drop from last week?  That will determine if it's defined as a "correction."  with the growth we've seen over the past year or so, I think it would be rational to expect a correction or 2,600 points.

[Right_in_Virginia]

I'm glad I didn't resist the advice (again) to sell quite a bit last Tuesday and shelter significant gains.  Financial minds greater than mine saw this coming.

[InHeavenThereIsNoBeer]

Can anybody explain and give us a rational explanation for this Sudden sell-off ( A HUGE ONE )?[

Is the market simply indicating that it went up too high too fast?

We're in the largest market bubble in history.  The people who are in know the fundamentals don't support the price levels, but they don't want to miss out while everyone else like them are driving prices even higher.  Anything that causes a few people to panic could (and I suspect will) cause the herd to panic.  It's entirely possible that a few people are seeing something like that and simply wanted to get the heck out first.

BTDCB?



 

[Cyber Liberty]

4.6% now about 7% over two days I believe.
If you are buying(i.e. putting money into your 401k), it's actually a good thing.
My broker moved me to a largely dividend return stock portfolio so my stocks are doing pretty well. If you are tired of getting .5% for your savings, AT&T(T) is paying over 5% and T is down almost 4% today.

Yes, close enough (6.8% from the start of the selloff).   Not anywhere near panicking, I moved off most of my large caps last year.  Getting too close to retirement to keep the risk that high.

[ABX]

Yeah, I was guestimating off the of the headline and comments.    What really matters is, how far is the drop from last week?  That will determine if it's defined as a "correction."  with the growth we've seen over the past year or so, I think it would be rational to expect a correction or 2,600 points.

Post close trading still shows a possible 4-5% drop tomorrow.

http://money.cnn.com/data/afterhours/

However, this may be too soon to judge based on this is still closing out orders from today.

[thackney]

[DB]

It would be interesting to plot the borrowed/printed money on that plot.

[SirLinksALot]

We have to understand that citing “largest point drop” is false reporting because market declines are more correctly measured in terms of PERCENTAGE DROPS.

Granted, the absolute number drop is psychological, but if you think a second time, it does not rank among the worst drop ever.

Remember dives of 500 - 600 when the Dow was at 12,000? well, it makes sense that at 26,000 we would see 1500 point swings.

This Seeking Alpha article said last Friday’s decline of 666 points on the DOW only ranked 538th in the list of historical PERCENTAGE DECLINES:

https://seekingalpha.com/article/4142967-dows-6th-largest-drop-ever

I am actually Looking forward to a measure of the percentage ranking of today’s loss.

Here are the 20 largest declines:

https://en.wikipedia.org/wiki/List_of_largest_daily_changes_in_the_Dow_Jones_Industrial_Average

Today doesn’t even rank in the top 20.

BTW, I am was very uncomfortable with Trump and some pundits using the ramp up in the stock market as "proof" of how great Trump's economic policies are.

Trump should distance himself from bragging about the market.  When we had 20 of 22 days of market ups, I knew this was going to happen.

He should have qualified his boasts about the markets by saying that “declines will happen, but the market has been rallying.”

But then, that's not his style, so there....

[IsailedawayfromFR]

Right now, about 3 pm, it is down over 1,000 points.  Since Trump took credit for it going up, it must be his fault it is tanking big time.

what world do you live in?  It is still way, way up since Trump was elected.

Just cannot stand to not take another swing at him, eh?

[SirLinksALot]

Politics aside, here is how this article looked at it:

http://www.bbc.com/news/business-42942921

Equity traders were enjoying a bullish run recently, and the jolt from the major decline in the US last Friday has triggered a worldwide round of profit taking

When the market gets overheated, like it has this last year, the slightest hint that the market is about to turnaround or drop in equity prices, the big players come out and sell to take their profits while they can.

The drop in stocks at the end of last week, was a signal for many investors to sell.

This is not unanticipated at some point. Realistically, the stock market can't keep going up and up and up, without cooling down occasionally.

[GrouchoTex]

Anyone jumping out of widows?

When Black Friday comes
I'm gonna stand outside the door.

[IsailedawayfromFR]

I suspect it's just another attempt to make Trump look bad.... and a lashing back over the recent release of the Nunes memo.  But....yeah.  I am probably just being a CT re: that...lol.

What does releasing a memo possibly have to do with anything?

Much more likely a new Fed chief coming in, and it flexing its muscles at Wells Fargo is the reason.

Anybody as yet been able to figure out whether the Fed actually has the authority to hit WF with a limiting growth dictate and firing its directors?
I doubt it has that authority.  That will certainly change the behavior of the businesses in this country, and something tells me it assumed the authority to do what it did.

[thackney]

When Black Friday comes
I'm gonna stand outside the door.

I would recommend standing across the street, out of jumping distance.

I was in the Enron building the day the stock fell below $1.  They had kept a stock ticker display in the lobby for years; it was gone that afternoon.  If the windows on that building had opened, I am sure people would have jumped.

[WingNot]

When Black Friday comes
I'm gonna stand outside the door.

I'll be in the doorway.  I don't want any of those fat cats using me to break their fall.

[Cyber Liberty]

What does releasing a memo possibly have to do with anything?

Much more likely a new Fed chief coming in, and it flexing its muscles at Wells Fargo is the reason.

Anybody as yet been able to figure out whether the Fed actually has the authority to hit WF with a limiting growth dictate and firing its directors?
I doubt it has that authority.  That will certainly change the behavior of the businesses in this country, and something tells me it assumed the authority to do what it did.

I've done business with WF, and they are as crooked as they come.  They deserve everything they have coming to them, as long as it's within the Fed's legal charter.  I don't know if they can restrict growth, though.  I'd be happy if they simply revoked WF's ability to loan money. They'd be dead inside of a year.

[GrouchoTex]

@thackney
@Wingnut

I am quoting a Steely Dan song.

"When Black Friday comes
I stand down by the door
And catch the grey men when they
Dive from the fourteenth floor."

So I guess it is "stand down" by the door, and not "outside" the door.
That makes more sense.

Just having a little fun.

[driftdiver]

We're in the largest market bubble in history.  The people who are in know the fundamentals don't support the price levels, but they don't want to miss out while everyone else like them are driving prices even higher.  Anything that causes a few people to panic could (and I suspect will) cause the herd to panic.  It's entirely possible that a few people are seeing something like that and simply wanted to get the heck out first.

BTDCB?

Aren't most trades actually system ones?  Big funds that trade millions at a time.    Not individual investors

[WingNot]

@thackney
@Wingnut

I am quoting a Steely Dan song.

"When Black Friday comes
I stand down by the door
And catch the grey men when they
Dive from the fourteenth floor."

So I guess it is "stand down" by the door, and not "outside" the door.
That makes more sense.

Just having a little fun.

Missed the Steely Dan Ref.  Even if you quoted it correctly.  I would have missed it.

 

[Cyber Liberty]

BTDCB?

I'll bite.  What's BTDCB?

[InHeavenThereIsNoBeer]

Aren't most trades actually system ones?  Big funds that trade millions at a time.    Not individual investors

Probably.  I've learned enough about HFT to know that there is a very, very strange world behind the curtain, but not enough to know if it's providing increased market efficiency or if it's time to break out the tar and feathers.  But I do know there's enough money out there just in 401k land that individuals should be able to start a panic (or a boom).  And the big funds know better than the rest of us what is really going on.

[Cyber Liberty]

Probably.  I've learned enough about HFT to know that there is a very, very strange world behind the curtain, but not enough to know if it's providing increased market efficiency or if it's time to break out the tar and feathers.  But I do know there's enough money out there just in 401k land that individuals should be able to start a panic (or a boom).  And the big funds know better than the rest of us what is really going on.

The big funds do the best when the little guys get crushed.  I think HFT actually aggravates that.

[Frank Cannon]

It might have something to do with this:
https://www.cnbc.com/2018/02/05/yellen-hard-to-tell-if-market-is-in-a-bubble-but-valuations-high.html

Greenspan also came out with more talk down bullshit of the markets. Add in impending interest rate hikes and you got people in a panic.