How about that DOW?

China dropped 9% yesterday and the DOW followed by dropping as much as 546 points, to end at minus 416.

Now THAT’S a trading day!

[quote]Feb. 27 (Bloomberg) – U.S. stocks plunged, wiping out about $600 billion in market value and erasing all of 2007’s gains, after a selloff in China spread and sparked the biggest rout in four years. Treasuries had the biggest jump since December 2004.

The Dow Jones Industrial Average fell as much as 546 points, the most since the first trading day after the Sept. 11, 2001, terrorist attacks in New York and Washington. All but two companies in the Standard & Poor’s 500 Index declined.

The plunge in China exposed the fact that there are problems developing,'' said Jim Rogers, who co-founded the Quantum hedge fund with George Soros in the 1970s. When you have major stock declines, they always start in marginal countries, sectors and companies.’’
[/quote]
Ouch, calling China “marginal.” That’s just rude.
bloomberg.com/apps/news?pid= … refer=news

DOWn! :frowning:

No it’s fair enough on a volume basis. Bloomberg aren’t in the habit of being rude, it’s simply not in their carefully crafted template.

Two directions are apparent. One is that this is fair enough a pullback, indeed more is likely, in a liquidity driven rally. the other, more from view is that it’s all over. I somehow don’t think it is.

It will be interesting to see the trade today, especially who is buying.

HG

It’s called a buying opportnity. lol

I’m down almost all across the board, except for a tiny biotech that’s going to cure cancer. How crazy is that?

And this is why we invest in DRIPs folks. :smiley:

[quote]Gauge of Investor Concern Surges by the Most Ever (Update2)

By Nick Baker

Feb. 27 (Bloomberg) – A gauge of investor concern surged the most ever today after a tumble in Chinese stock markets triggered a worldwide selloff in equities.

The Chicago Board Options Exchange’s SPX Volatility Index, or VIX, jumped 63 percent at 4:06 p.m. New York time.

The Standard & Poor’s 500 Index dropped 3.5 percent and the Morgan Stanley Capital International World Index slumped 2.4 percent. Both indexes fell by the most since March 2003.

It's no surprise to see the VIX up this much with the market selling off like this,'' said Ryan Larson, senior equity trader at Voyageur Asset Management, which oversees $10 billion. There’s a little bit of panic going on.’’
bloomberg.com/apps/news?pid= … fer=stocks
[/quote]
And you KNOW the TV was showing dishevled traders at the bell on the nightly news.

600 billion dollars gone and people get paniced. wimps.

It’s only 3%. Snotta a big deal. There’s no blood in the water yet. Another 3% down day, and maybe…

A minor blip…<3%. No Big Deal.

Probably a reaction to Greenspan’s recession prediction.

Sentiment changes very swiftly in liquidity driven markets.

HG

It’s not a surprise … the china stockmarkets are more like casinos …

[quote=“jdsmith”]It’s called a buying opportnity. lol

I’m down almost all across the board, except for a tiny biotech that’s going to cure cancer. How crazy is that?

And this is why we invest in DRIPs folks. :smiley:[/quote]

Its FREAKIN’ AWESOME.

I’m looking for bargains as we speak. There are a few around, but in Australia, most of the drops were in already overvalued sectors like mining.

How does this having anything to do with investing in DRIPs though?

In other news, the Flight Centre privatisation deal fell through, and they’ve kept the bloody stock in a trading halt due to this correction :fume:

I was hoping to pick up some more ~$10 mark

[quote=“Tyc00n”][quote=“jdsmith”]It’s called a buying opportnity. lol

I’m down almost all across the board, except for a tiny biotech that’s going to cure cancer. How crazy is that?

And this is why we invest in DRIPs folks. :smiley:[/quote]

Its FREAKIN’ AWESOME.

I’m looking for bargains as we speak. There are a few around, but in Australia, most of the drops were in already overvalued sectors like mining.

How does this having anything to do with investing in DRIPs though?[/quote]

When the market drops, direct reinvestment of dividends ends up buying more for less.

[quote=“jdsmith”][quote=“Tyc00n”][quote=“jdsmith”]It’s called a buying opportnity. lol

I’m down almost all across the board, except for a tiny biotech that’s going to cure cancer. How crazy is that?

And this is why we invest in DRIPs folks. :smiley:[/quote]

Its FREAKIN’ AWESOME.

I’m looking for bargains as we speak. There are a few around, but in Australia, most of the drops were in already overvalued sectors like mining.

How does this having anything to do with investing in DRIPs though?[/quote]

When the market drops, direct reinvestment of dividends ends up buying more for less.[/quote]

I see, its almost (in a lame kind of way) like dollar cost averaging, except that everyone subscribed in the DRIP is buying at the same time as you so the only people who suffer are those that chose to receive a dividend.

Personally I am against DRIPs as they dilute the asset holding for people who choose to receive an income, and it increases the number of shares on offer which skews any previous comparison in terms of Earnings per Share. I.E. a company that is not really growing, but makes good cashflow will find itself in the position where its EPS will decrease over time which will affect the value of the principle capital investment.

DRIPS are not as popular in Australia compared to the US for 2 good reasons. Firstly, the reason I stated above and secondly, unlike the US, dividends are not double taxed in Australia as they’re issued with franking credits. Therefore, depending on the income tax level of the purchaser, they may in fact receive cash back from the government. This is a much fairer system.

A stock I bought recently “Lemarne Corp” recently had a stock buyback which reduced the number of stocks on issue by ~1/3. Previously it had enough cash that approx. 40% of the companies’ NTA were held as cash in the bank. The rest of its businesses are very successful earnings wise, so now I can expect a higher EPS, a higher dividend and a subsequent capital increase.

well, it was inevitable that there would be a sell off at some point, now as other posters have said, it’s just a question whether it is a one - two day sell off or something more sinister. Around this time last year, of course there was that huge sell off around the world. Most of my mutual funds fell in that period between 10-20 percent but gained more than that in the following six months. That sell off lasted about four days and i’m wondering whether to shift over into fixed interest for a few days and then shift back into riskier funds next week. Not sure…
I had been wanting to get into Malaysia, Singapore and Japan but had resisted. The former two are up a lot this year, and now might be the chance to invest. I see they are down well over five percent today.

[quote=“Taiwan for Life”]well, it was inevitable that there would be a sell off at some point, now as other posters have said, it’s just a question whether it is a one - two day sell off or something more sinister. Around this time last year, of course there was that huge sell off around the world. Most of my mutual funds fell in that period between 10-20 percent but gained more than that in the following six months. That sell off lasted about four days and i’m wondering whether to shift over into fixed interest for a few days and then shift back into riskier funds next week. Not sure…
I had been wanting to get into Malaysia, Singapore and Japan but had resisted. The former two are up a lot this year, and now might be the chance to invest. I see they are down well over five percent today.[/quote]

The US markets should be fun to watch tonight then. We haven’t had a good correction in a while.

& I bought (long) the day before. :bluemad:

This too shall pass.

No panic, China is up around 4% again and most other Asian markets show a positive tendency, too.
I assume (hope) that the US and European markets will follow when they open.

Apparently the A & B shares are up on PRC government buying. Wen plans to release a piece on why volatility is bad for China in some journal in the coming days and has stressed that he doesn’t want volatility in China’s equity markets rocking global markets, especially the US.

All quite interesting.

HG

[quote=“Huang Guang Chen”]Apparently the A & B shares are up on PRC government buying. Wen plans to release a piece on why volatility is bad for China in some journal in the coming days and has stressed that he doesn’t want volatility in China’s equity markets rocking global markets, especially the US.

All quite interesting.

HG[/quote]

HA! I was tempted to say “Check the government treasury” after rascal post of 4% recovery. lol

DOW getting popped again. Down 200 points in 15 minutes.

ouch