Dow Crash Coming To Your 401K (2007 to 2022)

[Bindare_Dundat]

I'm disappointed.  I thought the news of Obama's presidency would send stocks soaring.   

Stocks open lower as economic woes mount

Nov. 6, 2008

http://news.yahoo.com/s/ap/20081106/ap_on_bi_st_ma_re/wall_street

Everyone is finally getting back to reality. 2009 is going to be brutal by some predictions. Peter Schiff rips into an Obama presidency.

[Nordic Superman]

Wow Peter Schiff is BANG on. Everyone thinking Obama will save them is in for a severe shock.

Makes some epically resonating statements.

[Le4rner]

like stocks in a downtrend ? 

Gold, silver, platinum, palladium,


In other words commodities people.  CDs, bonds...  LOL dude those are going down too.  They are tied to the dollar.  The dollar is going down in a blaze of glory.  "They" want a new currency.  Take everyone to zero and you can institute one with little fallout.

[loco]

my colleagues and i believe if Dow 7,800 is held and Obama wins the election, the market will begin to turn in a positive direction.

let's hope so.


NT

NT,

I hope so too!  Do you still believe this?  When do you believe this will happen? 

[Nordic Superman]

In other words commodities people.  CDs, bonds...  LOL dude those are going down too.  They are tied to the dollar.  The dollar is going down in a blaze of glory.  "They" want a new currency.  Take everyone to zero and you can institute one with little fallout.

Bingo...

[Hugo Chavez]

I see some people shocked that the market didn't recover at word of an Obama win.  Isn't wanting that to happen just asking for there to be an Obama bubble?  wouldn't it be best to see an action driven rise and not a faith driven rise?  I realise the speculation factor but maybe it's good that the market didn't just shoot up on an Obama win?

[Neurotoxin]

GBers.....continue to focus on Dow 7,800 as major support. 

IMO if we break 7,800........Dow 7,000 is very possible.

keep in mind, locating a Market bottom is a process, not an event. until then, my long term strategy remains unchanged.


NT

[Neurotoxin]

despite horrible economic news (see below) the Dow managed to gain +248.02 to finish at 8,943.00.

bad news - good action is always positive for the Market. although many economic bumps in the road lie ahead, the bigger question is: can the Market weather further incoming recessionary data without breaking major support levels ? 

Dow support @ 7,800.00 will remain key.


NT



U.S. Economy: Jobless Rate Climbs to 14-Year High

 

Nov. 7  The U.S. unemployment rate rose to the highest level since 1994 as companies slashed payrolls, setting the stage for the steepest economic decline in decades and a tough start for Barack Obama's presidency.

The jobless rate rose to 6.5 percent in October from 6.1 percent the previous month, the Labor Department reported today in Washington. Employers fired 240,000 workers after a loss of 284,000 in September. Revisions to the previous month added 25,000 more to the jobless lines than previously reported.

The surge in unemployment, coupled with other signs the economy nosedived last month, puts pressure on Obama to quickly name his economic team and spell out his planned remedies. It may also spur congressional Democrats to enact in coming weeks a second fiscal stimulus package.

25-Year High

The total number of unemployed Americans jumped to 10.08 million last month, the highest level in a quarter-century, today's report showed.

Economists had anticipated a 200,000 drop in payrolls after a previously estimated 159,000 decline in September, according to the median of 78 estimates in a Bloomberg News survey. The median forecast for the unemployment rate was 6.3 percent.

``We're heading for a deep recession,'' said Nariman Behravesh, chief economist at IHS Global Insight in Lexington, Massachusetts. ``Banish the word mild from your vocabulary. It's big, it's bad and it's broad-based.''

[Hereford]

Unemployment is kinda a messed up statistic tho NT.

A lot of unionites claim UEI for a good part of every year, and go on when they don't want to work.

Also I think I read somewhere that most people who go on stay on for the maximum time that they can...

[Neurotoxin]

2 more banks go belly-up


November 8, 2008
NEW YORK  The tally of failed banks in 2008 rose to 19 as the government announced that a Texas and a California bank had been shuttered Friday night.

Franklin Bank, a Houston, Texas-based bank and Security Pacific Bank, a Los Angeles, Calif.-based bank were shut down by state regulators Friday, marking the 18th and 19th bank failures this year.

[gtbro1]

I have been away from getbig most of this year probably...but back when shit DID hit the fan and I took a pretty big hit ( for me anyway) on my 401k the first thing I thought of was THIS THREAD    I told a coworker "Some dude on a message board I used to post on predicted this shit like a year ago...  

[Neurotoxin]

a recessionary U.S. reverberates worldwide.

NT


 
China Announces $586 Billion Stimulus Plan



November 9 
BEIJING — China unveiled a $586 billion stimulus package Sunday in its biggest move to inoculate the world's fourth-largest economy against the global financial crisis.

China's export-driven economy is starting to feel the pinch of weakening U.S. and European economies, and the government has already cut key interest rates three times in less than two months in a bid to spur economic expansion.

Economic growth slowed to 9 percent in the third quarter, the lowest level in five years and a sharp decline from last year's 11.9 percent.

That is considered dangerously slow for a government that needs to create jobs for millions of new workers who enter the economy every year and to satisfy a public that has come to expect steadily rising incomes.

Exports have been growing at an annual rate of more than 20 percent but analysts expect that may fall as low as zero in coming months as global demand weakens.

[Bindare_Dundat]

Ohio braces for possible DHL layoffs

About 8,000 job cuts reportedly may be announced tomorrow, when DHL's parent company releases its quarterly earnings report.

http://money.cnn.com/2008/11/09/news/companies/dhl/index.htm?postversion=2008110922

[Neurotoxin]

Dow retreated -78.00 points closing @ 8,870.00

on a positive note volume is light.


NT   




Nov. 10  U.S. stocks dropped as a worsening outlook for companies from Goldman Sachs Group Inc. to Google Inc. overshadowed China's $586 billion stimulus plan and pledges by the world's biggest nations to bolster economic growth.

Goldman fell 8.5 percent after Barclays PLC said the stock- market rout may drag the firm to its first quarterly loss since going public. General Motors Corp., which last week said it may run out of cash, lost almost a quarter of its value after Deutsche Bank AG said the automaker's shares may go to zero. Google Inc., the biggest seller of online ads, sank 3.7 percent on concern fourth-quarter revenue growth will stall.

``The market doesn't really have a handle on the depth of the recession's duration,'' said John Wilson, co-director of equity strategy at Memphis, Tennessee-based Morgan Keegan, which manages $120 billion. ``There's still a lot of fear out there.''

The Standard & Poor's 500 Index retreated 1.3 percent to 919.21, extending last week's 3.9 percent slide. The Dow Jones Industrial Average lost 73.27 points, or 0.8 percent, to 8,870.54. The Nasdaq Composite Index slipped 1.9 percent to 1,616.74. Almost three stocks declined for each that advanced on the New York Stock Exchange.

[Bindare_Dundat]

We need some more bad news to get the market into positive territory again.    Down 300, up 400, negative all day only to rebound in the last hour.... I'm ready to give up on this stuff.

[JBGRAY]

I long got away from the financial system.  I'm not going to sit around and watch my investments rise and fall at the whims of a selected few people.  If you want your fortunes based on a demented type of poker game, be my guest.

I refuse any sort of loan.  I have but one credit card(for hotel purposes) which is locked in a safe.  I have no mortgage, no car payment, no loan of any sort. 

The US will remain in recession, will continue to ship jobs overseas, and be inundated with cheap, slave-labor imports.

It's time for protectionist measures...and fast. 

[Neurotoxin]

not much positive news to report. (below) Dow closed down -176 points to close @8,693.00.

i'd personally like to see the market consolidate above the 7,800 area over the next few months. 

the longer we can hold support with incoming negative data...... the better.   


NT



Nov. 11  U.S. stocks dropped for a second day as a deteriorating outlook for American industry and oil's drop below $59 a barrel signaled the economic slump may deepen.

General Motors Corp. tumbled to the lowest price since 1943 as the automaker crept closer to bankruptcy, while Tyco International Ltd., the world's largest maker of security systems, sank 14 percent on a profit forecast that trailed analysts' estimates. Hartford Financial Services Group Inc. slid 23 percent after Goldman Sachs Group Inc. said investment losses may force insurers to raise more capital and threaten credit ratings. All 40 energy shares in the Standard & Poor's 500 Index decreased as crude declined to a 19-month low.

The S&P 500 fell 20.26 points, or 2.2 percent, to 898.95. The Dow Jones Industrial Average lost 176.58, or 2 percent, to 8,693.96 as 29 of its 30 companies retreated. The Nasdaq Composite Index slid 2.2 percent to 1,580.9. Five stocks declined for each that rose on the New York Stock Exchange.

[Neurotoxin]

it looks as if we may test the Oct 10th low. (7,8O0.00)  in the event we fail to hold that low, 7,200 would be our next long term institutional support area. 

Dow was lower -410 points to close at 8,282.00.



NT


Nov. 12 U.S. stocks fell for a third day as the Treasury's plan to use bailout funds to shore up consumer lending and Best Buy Co.'s warning of a ``seismic'' slowdown in spending stoked concern the credit crisis is far from over.

American Express Co. tumbled 10 percent on a report the company may need government aid. Citigroup Inc. and the Standard & Poor's 500 Financials Index slid to 12-year lows as the Treasury scrapped plans to buy mortgage assets and shifted focus to consumer credit. Best Buy, the largest electronics retailer, lost 8 percent after saying profit will decrease in ``the most difficult climate we've ever seen.'' Occidental Petroleum Corp. dropped 11 percent as crude sank below $57 a barrel.

``It's hard to get away from the drumbeat of negatives,'' said Liam Dalton, who oversees $1.3 billion as New York-based chief executive officer of Axiom Capital Management. Best Buy's forecast cut is ``a further sign of the retrenchment of the consumer and spending that's slowing very, very rapidly across the board.''

The S&P 500 dropped 5.2 percent to 852.32 and lost 8.5 percent over the past three days. The Dow Jones Industrial Average retreated 411.3 points, or 4.7 percent, to 8,282.66. The Nasdaq Composite Index lost 5.2 percent to 1,499.21, a five-year low. More than 24 stocks fell for each that rose on the New York Stock Exchange.

[Neurotoxin]

the Oct 10th low is now in sight.

the question is: can we hold support ?


NT


Note: the Dow is down nearly 50% from the same time last yr.

[Neurotoxin]

we just struck 7,900 area........i'd expect a short cover bounce very soon.


NT

[Neurotoxin]

as expected, we tested the Oct 10th low and bounced nicely. a positive sign for the market. the longer we hold this base.....the better.


NT



Nov. 13, 2008 U.S. stocks rallied Thursday afternoon after a series of rises and dips, as the market down for three straight days tried to absorb rising unemployment claims and reduced outlooks from Intel Corp. and Wal-Mart Stores Inc.
 
After rising more than 100 points at the start, only to lapse below 8,000 for the first time since Oct. 10. the Dow Jones Industrial Average advanced +552.59 points to close at 8,835.00

[Neurotoxin]

we just struck 7,900 area........


NT

exactly one year ago to the day, the Dow sat @ 14,000:

move your money out of stocks and into cd's, cash, money markets ect.

preservation of capital is key.

if you do nothing, kiss your money goodbye.

[benz]

exactly one year ago to the day, the Dow sat @ 14,000:

Money markets...sounds like a good way to preservate capital with so many breaking the buck, great advice

[Bindare_Dundat]

Bernanke hints at rate cut

Fed chairman says policymakers are 'ready to take additional steps' as markets remain volatile and economy weakens.

WASHINGTON (AP) -- Warning that financial markets remain under "severe strain," Federal Reserve Chairman Ben Bernanke pledged Friday to work closely with other central banks to fix global financial problems and left open the door to a fresh interest rate cut to help brace the sinking U.S. economy.

The Fed chief's remarks appeared to reinforce the view of Wall Street investors and economists that the Fed probably will lower interest rates again on Dec. 16, its last regularly scheduled meeting this year. The Fed's key rate is now at 1%.

[Bindare_Dundat]

October budget deficit hits record of $237.2B
Thursday November 13, 10:06 pm ET
By Martin Crutsinger, AP Economics Writer 
Government begins budget year with record deficit of $237.2 billion, reflecting bailout


WASHINGTON (AP) -- The federal government began the new budget year with a record deficit of $237.2 billion, reflecting the billions of dollars the government has started to pay out to rescue the financial system.