Market Down 415

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rabble
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Re: Market Down 415

Postby rabble » Mon Aug 24, 2015 3:09 pm

Comrade wrote:Why buy on the way down?

Wouldnt it be smarter to wait until an apperant bottom has been reached before buying? You might pay a bit more than the absolute bottom, but it would be less risky than trying to guess a bottom.

The process of "shorting" is to sell your stock while it's dropping, wait a bit, then buy it all back at the lower price.
You've still got all your stock plus the difference of the drop.
Which is probably not what you're asking but it's one reason to buy while it's dropping.

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Re: Market Down 415

Postby Bwis53 » Mon Aug 24, 2015 3:24 pm

How does this affect the everyman and what should we do about it? Reign in Wall St.? Is there anything more valuable than stocks, oil and gold? I'm a simpleton.
Last edited by Bwis53 on Mon Aug 24, 2015 3:29 pm, edited 1 time in total.

massimo
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Re: Market Down 415

Postby massimo » Mon Aug 24, 2015 3:29 pm

The everyman is like a passenger on a plane. We bought the ticket, but whether the plane gets to its destination or not is up to forces beyond our control and even comprehension. On top of that, there are people who would like to see the plane go down to score political points. Passengers, pilots, terrorists. Investors, wall street, terrorists.

Fuck it, I'm hitting submit anyway.

O.J.
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Re: Market Down 415

Postby O.J. » Mon Aug 24, 2015 4:05 pm

Comrade wrote:Why buy on the way down?

Wouldnt it be smarter to wait until an apperant bottom has been reached before buying? You might pay a bit more than the absolute bottom, but it would be less risky than trying to guess a bottom.


Huh?

Comrade
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Re: Market Down 415

Postby Comrade » Mon Aug 24, 2015 8:33 pm

rabble wrote:
Comrade wrote:Why buy on the way down?

Wouldnt it be smarter to wait until an apperant bottom has been reached before buying? You might pay a bit more than the absolute bottom, but it would be less risky than trying to guess a bottom.

The process of "shorting" is to sell your stock while it's dropping, wait a bit, then buy it all back at the lower price.
You've still got all your stock plus the difference of the drop.
Which is probably not what you're asking but it's one reason to buy while it's dropping.


That isn't quite correct.

You short a stock by selling a stock that you don't own.

You borrow the stock from someone else. Sell it, and pay them interest for the time they loaned it to you.

Otherwise, you have the concept down correctly.

It isn't risk free. You cannot afford to borrow it indefinitely.

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Re: Market Down 415

Postby snoqueen » Mon Aug 24, 2015 8:38 pm

Bwis53 wrote:How does this affect the everyman and what should we do about it? Reign in Wall St.? Is there anything more valuable than stocks, oil and gold? I'm a simpleton.


It's not dumb to ask a question. If you want to hear what NPR said about this very thing today, go to npr.org and listen to the archive file of today's All Things Considered, or scroll through their main page and click one of their market-related headlines. I won't pick one for you, there are several to consider and you can dig or not dig in as you feel interested. I thought they did a good job.

http://www.marketplace.org/ also did a good job on the basics today.

Gold goes up and down like anything else, although sometimes it moves contrary to the rest of the market. It's not for beginners, in spite of what the political fringe folks might say. The values of everything change over time and the idea is not to hold on to the most valuable but rather (within the individual's means) to hold a variety so if one goes down maybe another will come up.

Real estate used to be considered pretty safe, but look at what happened to the person whose only asset was a house in Detroit. There are no sure things.

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Re: Market Down 415

Postby O.J. » Tue Aug 25, 2015 6:29 am

Comrade wrote:
rabble wrote:
Comrade wrote:Why buy on the way down?

Wouldnt it be smarter to wait until an apperant bottom has been reached before buying? You might pay a bit more than the absolute bottom, but it would be less risky than trying to guess a bottom.

The process of "shorting" is to sell your stock while it's dropping, wait a bit, then buy it all back at the lower price.
You've still got all your stock plus the difference of the drop.
Which is probably not what you're asking but it's one reason to buy while it's dropping.


That isn't quite correct.

You short a stock by selling a stock that you don't own.

You borrow the stock from someone else. Sell it, and pay them interest for the time they loaned it to you.

Otherwise, you have the concept down correctly.

It isn't risk free. You cannot afford to borrow it indefinitely.


That isn't quite correct, either.

Are you talking about margin interest? That doesn't apply to short sales, which produce a credit in your margin account, not a debit. There is an initial margin requirement (and ongoing maintenance requirements if the stock increases enough), but you're not charged interest. If you're shorting a thinly traded stock, or one that sees an overwhelming level of shorting activity, you may be charged a daily fee to borrow the stock, otherwise you just pay normal commissions.

Comrade
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Re: Market Down 415

Postby Comrade » Tue Aug 25, 2015 9:34 am

No Sir! I am not talking about margin interest. Dont put words in my mouth. Never mentioned that at all,

O.J.
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Re: Market Down 415

Postby O.J. » Tue Aug 25, 2015 9:46 am

Comrade wrote:No Sir! I am not talking about margin interest. Dont put words in my mouth. Never mentioned that at all,


What form of interest were you talking about?

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Re: Market Down 415

Postby Shorty » Tue Aug 25, 2015 3:32 pm

Down another 200 today. It's falling faster than Niagra Falls.

Sandi wrote:It isn't at the bottom yet, China is just the epicenter. By the end of the year it will be worse, but not just stock markets. Silver, gold, oil etc will all be at record lows.

Thanks for the tip. I better sell my silver coins.

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Re: Market Down 415

Postby O.J. » Wed Aug 26, 2015 12:54 pm

Shorty wrote:Down another 200 today. It's falling faster than Niagra Falls.

Sandi wrote:It isn't at the bottom yet, China is just the epicenter. By the end of the year it will be worse, but not just stock markets. Silver, gold, oil etc will all be at record lows.

Thanks for the tip. I better sell my silver coins.


The only way those commodities hit all-time lows by year's end is if you use the 1980 calculation of CPI.

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Re: Market Down 415

Postby green union terrace chair » Wed Aug 26, 2015 1:13 pm

Sandi wrote:It isn't at the bottom yet, China is just the epicenter. By the end of the year it will be worse, but not just stock markets. Silver, gold, oil etc will all be at record lows.

Why on earth do you think precious metals would go down with everything else? Hint: no fucking way the Chinese people are selling off their gold for RMBs and no way the Chinese government is selling of their gold for USDs.

rabble
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Re: Market Down 415

Postby rabble » Wed Aug 26, 2015 2:18 pm

All I know is, in the 60's a gallon of gas cost a quarter. Today a gallon of gas costs about as much as a standard 1964 quarter.

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Re: Market Down 415

Postby green union terrace chair » Wed Aug 26, 2015 4:09 pm

rabble wrote:All I know is, in the 60's a gallon of gas cost a quarter. Today a gallon of gas costs about as much as a standard 1964 quarter.

This is true. Though you get more utility out of that gallon of gas than you would have in 1964!

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Re: Market Down 415

Postby Michael Patrick » Wed Aug 26, 2015 4:37 pm

Dow was up 619 points today. Obviously the end is nigh. Obviously.


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