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Dow ends with largest drop ever - Printable Version +- Cincinnati Bengals Message Board / Forums - Home of Jungle Noise (http://thebengalsboard.com) +-- Forum: Off Topic Forums (http://thebengalsboard.com/Forum-Off-Topic-Forums) +--- Forum: Politics & Religion 2.0 (http://thebengalsboard.com/Forum-Politics-Religion-2-0) +---- Forum: P & R Archive (http://thebengalsboard.com/Forum-P-R-Archive) +---- Thread: Dow ends with largest drop ever (/Thread-Dow-ends-with-largest-drop-ever) |
Dow ends with largest drop ever - BmorePat87 - 02-05-2018 https://www.politico.com/story/2018/02/05/trump-stock-market-down-324880 The Dow ended the day down 1,175 points but at one point was down nearly 1,600. This is the largest drop in history, though not the largest drop percentage wise (Black Monday saw the Dow down 23%). The 4.6% drop is still not quite the 7% drop that was experienced in 2008. The Fed is expected to keep raising interest rates to combat inflation as the government plans to borrow more in 2018 with tax revenue down thanks to the tax cuts. Higher interest rates will also lessen some of the benefits of proposed wage increases and bonuses in the wake of the cuts. The other unknown is whether Congress can agree on a debt ceiling plan before the deadline. Hopefully things will settle down, but I'm not sure if anyone has a plan to ensure that. RE: Dow ends with largest drop ever - Belsnickel - 02-05-2018 (02-05-2018, 08:49 PM)BmorePat87 Wrote: https://www.politico.com/story/2018/02/05/trump-stock-market-down-324880 I don't have hope on things settling down. We're due for another recession, and we've made it so we don't have the fiscal tools in our toolbox that we normally use to right the ship. I don't think this is going to turn out well. RE: Dow ends with largest drop ever - SunsetBengal - 02-05-2018 "Money people" on the radio were explaining that after periods of unprecedented growth, often follow with a "market correction", typically around 10%. They went on to explain that when periods of large growth happen, many short term investors see that as a time to "cash out". I'm not positive as to the validity of those statements, but they made sense when I was listening. RE: Dow ends with largest drop ever - Belsnickel - 02-05-2018 (02-05-2018, 09:41 PM)SunsetBengal Wrote: "Money people" on the radio were explaining that after periods of unprecedented growth, often follow with a "market correction", typically around 10%. I've been saying for a while now that the market is cyclical. The market has grown a lot since the recession, and so it is about due for a downturn. RE: Dow ends with largest drop ever - StLucieBengal - 02-06-2018 (02-05-2018, 09:41 PM)SunsetBengal Wrote: "Money people" on the radio were explaining that after periods of unprecedented growth, often follow with a "market correction", typically around 10%. Plus all the programs that are set to sell once hey hit a certain amount of growth. RE: Dow ends with largest drop ever - Au165 - 02-06-2018 (02-06-2018, 12:21 AM)StLucieBengal Wrote: Plus all the programs that are set to sell once hey hit a certain amount of growth. Stop orders aren't something that really get done at large institutional levels to sell off growth (hit a certain price and sell). They are normally what are called relative stop losses that basically sell on the fall after hitting run ups. This also wouldn't be aligned across multiple sectors and brokerages either and so I am not sure it has any real barring here. RE: Dow ends with largest drop ever - GMDino - 02-06-2018 I don't know why any of you care about the stock market going up or down. The POTUS does not! https://www.marketwatch.com/story/what-the-trump-white-house-says-about-this-sharp-stock-market-reversal-2018-02-05 Quote:With Donald Trump’s propensity to take credit for a rising stock market since his November 2016 election[/url], via tweets and retweets as well as at rally-type events, journalists and pundits alongside much of the public were eager to learn how the president would address [url=https://www.marketwatch.com/story/with-3-day-selloff-stocks-quickly-approach-correction-territory-2018-02-05]sharp declines in equities last week and an intensifying selloff Monday. RE: Dow ends with largest drop ever - StLucieBengal - 02-06-2018 (02-06-2018, 10:11 AM)Au165 Wrote: Stop orders aren't something that really get done at large institutional levels to sell off growth (hit a certain price and sell). They are normally what are called relative stop losses that basically sell on the fall after hitting run ups. This also wouldn't be aligned across multiple sectors and brokerages either and so I am not sure it has any real barring here. Was brought up on multiple business channels by analysts. RE: Dow ends with largest drop ever - Griever - 02-06-2018 i think we can all agree that if trump wanted credit on the rise, he deserves the blame for the fall RE: Dow ends with largest drop ever - GMDino - 02-06-2018 (02-06-2018, 10:58 AM)Griever Wrote: i think we can all agree that if trump wanted credit on the rise, he deserves the blame for the fall And that most sane people know the POTUS really shouldn't get too much credit/blame for either. RE: Dow ends with largest drop ever - Johnny Cupcakes - 02-06-2018 Without being too doomy and gloomy here, it's only a matter of time before the market takes a significant downturn. It's hard to maintain dramatic growth for as long as we have. RE: Dow ends with largest drop ever - Vas Deferens - 02-06-2018 (02-06-2018, 10:58 AM)Griever Wrote: i think we can all agree that if trump wanted credit on the rise, he deserves the blame for the fall It would be treasonous not too. RE: Dow ends with largest drop ever - Belsnickel - 02-06-2018 (02-06-2018, 10:58 AM)Griever Wrote: i think we can all agree that if trump wanted credit on the rise, he deserves the blame for the fall (02-06-2018, 11:10 AM)GMDino Wrote: And that most sane people know the POTUS really shouldn't get too much credit/blame for either. (02-06-2018, 12:19 PM)Vas Deferens Wrote: It would be treasonous not too. Yeah, it's silly for a president to really try to claim anything on the market. One, there are too many factors. Two, the market is not the economy. Three, if you try to take credit you are going to own blame. (02-06-2018, 12:08 PM)Johnny Cupcakes Wrote: Without being too doomy and gloomy here, it's only a matter of time before the market takes a significant downturn. It's hard to maintain dramatic growth for as long as we have. You're fine, I've been saying the same thing for a while, now. RE: Dow ends with largest drop ever - Au165 - 02-06-2018 (02-06-2018, 10:49 AM)StLucieBengal Wrote: Was brought up on multiple business channels by analysts. I'm just telling you what I learned in college from a professor who was a higher up at UBS once upon a time. Maybe they were referring to some sort of retreat triggering trailing stop losses, but either way it shouldn't all trigger at once to create this hard of a pullback.This is most likely market sentiment driven more than technical based on everything going on. RE: Dow ends with largest drop ever - Goalpost - 02-06-2018 The stock market is based on valuation/pe. Companies are still reporting good earnings. But as to why it is happening now...the market has gotten ahead of itself. I also think interest rates will uptick, it's inevitable, and this will hurt consumer purchasing power. People will still buy, on dips, quality companies. If earnings were declining we'd be in big trouble, that's not happening though. |