Stock Market Crash!?

[superdad1580]

Hello everyone

I was wondering if you would like to give your opinion on the Stock Market.

Do you think it will ever stabilize or do you think the stock market is heading for a great big nasty crash?

[disneysteve]

Sorry, my crystal ball is kind of cloudy.

Seriously, though, you are asking this question a year after the market hit bottom. It has since staged a huge recovery. I think volatility will continue to be the norm but the long-term trend will still be upward. Just my personal opinion but I have no intention of pulling money out of the market.

[creditcardfree]

Sorry, my crystal ball is kind of cloudy.

Seriously, though, you are asking this question a year after the market hit bottom. It has since staged a huge recovery. I think volatility will continue to be the norm but the long-term trend will still be upward. Just my personal opinion but I have no intention of pulling money out of the market.

I agree. I'm in for the long haul and I can say that investing regularly does pay off. If we do get another correction or crash as you say...just know that those shares are 'on sale'. You'll be getting more shares for your money. More shares that can earn dividends and grow.

[PaydayLoner]

I think the "crash" happened a year or so ago, whenever the bottom was, and it's going to be a long series of ups and downs for a while. The market really hasn't made any progress since I was in grade school. It's funny, when my parents were my age, it was the same way for them too, back in the 1970s, and then a big bull market came in the 1980s till around 2000. So I'm thinking another big bull market will come eventually, but not for a while yet.

Which, now that I look at it, is pretty much the same thing that Disneysteve said, only in different words.

[Snodog]

My prediction: The stock market will fluctuate.

I just stick to my asset allocation/with rebalancing and don't worry about it much.

[Beppington]

My prediction: The stock market will fluctuate.

I just stick to my asset allocation/with rebalancing and don't worry about it much.

Aw man, that's exactly what I was gonna type!

And I do the same.

[Snodog]

Aw man, that's exactly what I was gonna type!

And I do the same.

[JBinKC]

I see a sideways type choppy market for some time and growth of the money supply will be the biggest macroeconomic determinate of the direction of the stock market going forward.

I really don't see a secular bull type market developing for some time where long term returns would exceed the rate of inflation unless we solve the energy crisis with a low cost solution.

[Beppington]

I see a sideways type choppy market for some time and growth of the money supply will be the biggest macroeconomic determinate of the direction of the stock market going forward.

I really don't see a secular bull type market developing for some time where long term returns would exceed the rate of inflation unless we solve the energy crisis with a low cost solution.

I've given up on these types of seemingly logical predictions.

I was wrong too many times, and still am: When the Dow had climbed from ~8,500 in mid-'03 to ~14,000 in late '07 I figured it'd keep on going about like that. Instead from there it dropped to ~11,400 over the next year . I figured that was a pretty deep drop & it'd probably turn around about then. Instead, over the next few weeks it dropped to ~9,000 . That seemed like surely a good time for it to turn around. Instead, over the next 5 months it dropped to ~6,600 . Then I figured hey this may never stop; Could 4,000 be near ? Instead, over the next 10 months it rose to ~10,600

Literally I saw none of this coming. Who did?? Where were they when I needed them?? I would've paid them huge money to predict all that accurately!!

It's the same way with gas prices. I figured when it hit 4 bucks it was gonna keep on truckin' higher. Instead, its next move was right to about $2.50 I think it was?!

[dczech09]

The way I see it, as long as day trading remains popular, market volatility is a given. Think about it? Selling on a whim, shorting, writing calls, buying puts, etc. It all leads to downward pressure of stock prices. Collectively, this provides a lot of downside risk over the short run. We see it everyday too: day trading software and "strategies" being offerred to the public. People blindly bite onto these money makers thinking they will profit. Unknown to them, they are part of the reason why the markets have become so volatile.

Overall, long term investing will pay off. However, right now, its gonna be a wild ride while day trading remains all the rage. Once that trend ends, I think we'll see a whole new dynamic to the market.

[SmarterSpend]

I believe you are going to see lots of volatility in the next couple years... the economic indicators are all over the place.

I wouldn't pull my money out of the stock market, but I wouldn't be investing heavily either.

[poundwise]

Yawn.

There is no telling what will happen in the least. It could fall 15%, it could rise 15%. There could be positives or negatives that cause either or first one, then the other.

If you want in the market but aren't sure what to do, invest in index funds. Whether you choose to invest in index funds, select actively managed funds, or buy individual stocks (something I don't recommend until you have enough money to diversify well), you have to accept that investing in the market is a long-term option. If you get in when you think it is a good time and get out when you're afraid, you'll almost guarantee losing your shirt.

If you can't stomach the roller coaster, invest in fixed certificates and real estate. (Though the latter has its own ups and downs to contend with.)

[woodie96]

Rollercoaster ride for a while....
I'll keep sticking to my DCA style of investing...

I keep telling myself....."The turtle and the hare"...

[Beppington]

Yawn.

There is no telling what will happen in the least. It could fall 15%, it could rise 15%.

Actually, if you're willing to put your money with your mouth is on that + 15% figure, you should get into Options!

[b4freedom]

I’m going to go out on a limb and actually make a prediction. Over the next decade you’re going to see a slow selling off of the market. Perhaps we’ll even see something similar to Japan’s “lost decade” (or two decades really). We’re in a deflationary cycle. By deflation I mean less overall money, the loss of asset value, and a decrease in the rate at which money moves. I don’t mean price deflation, although we can have some of that.

I got out of the market in July 2008 (see my post then). I got back in April 2009. I’m out now (as of last week). When I mean out, I moved my entire retirement account out of the market and into a money market account.