beesting
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YES!
Most investments are affected by a "Ripple" affect. Here are some more thoughts:
Many investors are mutual funds, hedge funds, & Govrnment retirement funds, that hire top advisors to manage their portfolios of stocks & investments.
They all have stop loss programs entered into their investment portfolios. When certain stocks decline, for any number of reasons, other stocks may have to be sold off to meet "Margin" requirements.
Hence, we get many investments of all types in a mad sell off pattern, that may or may not persist until things calm down.
Unfortunately, investors also use the "Herd" mentality where they all rush for the door out at once, before it closes.
Here is a story that could be related:
http://allafrica.com/stories/20070726088...
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shelcom
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It's down over 425 points today...what does that tell you? |
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CROWN_PRINCE
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maybe but the FED will do something before that happen |
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Franco
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Such events are unlikely to cause a crash, but they can certainly cause a hell of a mess, as happened these last 3 days.
Real crushes only happen every 5 to 10 years, after the stock market has had a very big rise. What we are having now is a correction. |
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JJ
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No. Whats happening with the subprime market is the definition of a correction. This is bringing back into line the value of a whole lot of mispriced credit. "Crisis" is a cable news headline, this is not a real financial crisis by any stretch.
Now, there's nothing to say that a credit correction couldn't aggrevate or compound other existing issues, but I'm of the opinion it alone couldn't crash the market. |
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merc
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if you listen to the media hype, that's what it's trying to do now. As far as the FED is concerned, I'm betting Bernake is going to do nothing = interest rate holds steady. Personally I don't believe the hype because the housing/ real estate crisis was anticipated 2 years ago and was 2 years in the making already. |
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Anonymous
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Possible? Yes, but the fed's will step in before anything happens... Probable? No, give it until the end of the week and the market will be straightened out again.
The reason the market is crashing hard today is only because they are worried about the price of oil, failed company mergers, and the fear of the all-mighty subprime non-payments spreading to other types of loans... This is simply market correction and If I were you I'd be investing every penny I own today!! (Which I have done myself!) |
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egiese
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That is exactly what did happen today. Will the stock market stay down? No. What would I invest in? REIT's (real estate investment trusts). As for why. Because at this time they are out of favor. That does not make them a bad investment. Be careful and always do your research. Look out for insider trading. Are the directors of the company buying the company stock or are they selling it? Oh yes REIT's provide real nice dividends too. My strategy is called the "contrarian strategy". |
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