The reason for all the downturn

[sportsmadness80]

This is one of the reasons for the latest mischief (Bernanke). It will take a while for most of the stock world to trust this guy. http://biz.yahoo.com/ap/060523/bernanke.html?.v=2 http://fool.exler.ru/sm/ban.gif

[NATHAN LLOYD]

I like all your emoticons.

I disagree with you on blaming Bernanke; albeit, he did have a slip of tongue. He is the only one who can save the USD from tanking; i.e., inflation from getting out of control.

The trade deficit due to oil is the real culprit, and Bush has done nothing to make it better. His foreign diplomacy--spending trillions on a stupid war--has done nothing for our economy. We need electric cars and nuclear power plants. This would boost the USD big time, and our trade deficit would become nil. I hope people have learned and never vote for another Bush.

[reef]

I hope people have learned and never vote for another Bush.

Lord help us if somehow "Jeb" gets elected too, lol!

[NATHAN LLOYD]

Lord help us if somehow "Jeb" gets elected too, lol!

If that happens, I might just move to Ireland. I heard they need dentists real bad over there in the UK.

[who8me2k7]

I like all your emoticons.

I disagree with you on blaming Bernanke; albeit, he did have a slip of tongue. He is the only one who can save the USD from tanking; i.e., inflation from getting out of control.

The trade deficit due to oil is the real culprit, and Bush has done nothing to make it better. His foreign diplomacy--spending trillions on a stupid war--has done nothing for our economy. We need electric cars and nuclear power plants. This would boost the USD big time, and our trade deficit would become nil. I hope people have learned and never vote for another Bush.

YAYYY!!! How the hell did bush win the last election........

[madcowdisease]

i disagree with your asessment of this market slide. Granted Bernanke is a component but for my take read here :http://www.cramersmadmoney.com/showthread.php?t=4038

Or just go here for the sans commentary version: http://articles.moneycentral.msn.com/Investing/JubaksJournal/HowJapanSankTheUSmarket.aspx

[NATHAN LLOYD]

That was one pedantic article by Jim Jubak, but I do think he knows his sh!t. I'll have to go through it a couple more times.

[NATHAN LLOYD]

Is this a good summary of that pedantic article?

Japan is taking money out of the market and is going to raise rates because their economy is starting to rebound. Hence, with Japan (potentially) and the US raising rates, bonds are getting more attractive than stocks. This means speculative stocks are still due for some correction.

PS: It's more fun to blame Bush with his 30% approval rating.

[reef]

PS: It's more fun to blame Bush with his 30% approval rating.

Hey if we're gonna bash Bush, let's make sure we get his approval rating correct, it's 29%! :lol:

[madcowdisease]

Is this a good summary of that pedantic article?

Japan is taking money out of the market and is going to raise rates because their economy is starting to rebound. Hence, with Japan (potentially) and the US raising rates, bonds are getting more attractive than stocks. This means speculative stocks are still due for some correction.

PS: It's more fun to blame Bush with his 30% approval rating.

I think you can simplify it even more: The Bank of Japan will be raising the cost of money so all the excess liquidity that is floating around, and finding a home in foreign markets, will gradually disipate and hence the foreign markets will see net outflows of cash. This is not good for stocks.

You really think Juback is pedantic here? I found it rather worldly but then again I did study this crap in school. I suppose since he did focus heavily on The BoJ I see where you're coming from. Personally, I think the market slide is a confluence of issues occuring simultaneously with the BoJ being one major component.

[krazykowboy]

markets move in cycles, why's everybody in dismay? ya go from overvalued / overbought to oversold / undervalued and back again

so ya buy low, sell high and don't try to time it

ya ever hear buy weakness, sell strength, or this one,,,,

buy the rumour, sell the news,,,,

so what more did ya expect, we been up a bit, so we need to go down, wake up and quit yer cryin,,, geeeeeesshhh !

[madcowdisease]

markets move in cycles, why's everybody in dismay? ya go from overvalued / overbought to oversold / undervalued and back again

so ya buy low, sell high and don't try to time it

ya ever hear buy weakness, sell strength, or this one,,,,

buy the rumour, sell the news,,,,

so what more did ya expect, we been up a bit, so we need to go down, wake up and quit yer cryin,,, geeeeeesshhh !

I agree completely that markets do move in cycles. But, one should take notice that much of the selling was done in an extremely hasty manner where many of the members of this board lost the gains of 2006 in less than a week. The selling also coincided when the FOMC reached pivotal level in rates, 5%.

5% is no small return and in the minds of most investors sort of a watershed moment this day and age where bonds and CDs look more attractive due to their backing by the full faith and credit of the government. You have to be aware money will flow out of the markets at this level.

Lastly, if the economy does not cool off and the FOMC takes us to 6% or 6.5% we're gonna see a big bear raise its ugly head and the cycle you speak of will turn south in a hurry.

I personally see this as just the incipient stages of extreme volatility in the market as anxiety about the next Fed move aches in the head of every trader on Wall St. The market will hang on every last economic datum to be released whether it be housing, CPI, PPI, or the GDP Deflator we're going to swing wildly up and down as Wall St tries to gauge the next Fed move. If you're staying in, get ready for a wild ride which will, in the not to distant future, be one where we go down. Now might be a good time to open your margin account so you can short.