Market SUCKS!

[Like2Plan]

All's I can say is watching the market is about as much fun as going to the dentist.... (no offense to any dentists on the board )

[Seang11]

Yes, it is tough to take the market on days like this. You can sense the real fear that overtakes people during times like this. It's a real flight or fight thing.

I think it can be a time of great opportunity in the market. At some point the market, and certainly parts of it, will be undervalued. So now can be the time to start thinking about which sectors, industries and stocks will be the ones that are oversold. Those will be the ones that will potentially outperform the market when "normal" market conditions return.

[kork13]

It seems completely insane and backwards, but when I saw that the S&P dropped over 6% in a single day, I smiled. I'm 25, and I see this as a fabulous buying opportunity! If only I had some cash sitting around that I could start funneling into the market... my next scheduled buys are a week from now. I suppose I can wait.....

As Mr. Trump has said, "Be fearful when others are greedy. Be greedy when others are fearful." So here's to becoming greedy!

ETA: I looked at a timeline for the S&P 500... the level we're at right now is basically the same as it was back in December 2009 -- so except for the dividends between that 1.5 yr period, you can essentially go back in time and purchase stocks at the level they were at as we were first starting to come out of the previous lows. So unless you were planning to sell out of the market in the next few years, this can only be an OPPORTUNITY!

[Tobby782]

It will be interesting to see how long this sell off lasts. If it keeps going down like this wouldn't be surprised to see the Fed get involved. There could be a really amazing buying opportunity at some point!

[tripods68]

The FEDS made the decision to not raise interest rate till 2013. Recovery is longer than they expected. Personally, I didn't think the market will recover anytime soon until the housing picks up again which will be at least 2015. But if you have adjustable mortgage rate (currently at 3%), like we do, so this is good news.

[ez1]

The problem is that the S&P 500 is nearly 30-50 percent more expensive than its fair value based on several established valuation metrics. (check out dshort dot com - I can't post links yet)

Yes, these kinds of overvaluations/undervaluations can last for significant periods of time, but it definitely tilts the game away from your favor. Detailed analysis suggests that the markets will have close to a 0% return (adjusted for inflation) over the next 15-20 years. That's not good at all.

[tantalia]

Our market today really sucks !!!

[KTP]

The problem is that the S&P 500 is nearly 30-50 percent more expensive than its fair value based on several established valuation metrics. (check out dshort dot com - I can't post links yet)

Yes, these kinds of overvaluations/undervaluations can last for significant periods of time, but it definitely tilts the game away from your favor. Detailed analysis suggests that the markets will have close to a 0% return (adjusted for inflation) over the next 15-20 years. That's not good at all.

Actually a 0% return adjusted for inflation is quite a bit better deal than you can get with most treasury bonds or CDs. A 1 year CD today actually gives you about a -2% return adjusted for inflation.

If you count dividends, then the stocks are actually returning a small positive return..maybe 2% to 4% after inflation.

[Fredy Atwater]

I don't mean to disagree with you all but I love bear markets. I just bought some penny stock and made $1200 in a few weeks. My plans with this investment are only going to get better when the market goes up so I am going to hold onto to my stock and buy more.

[ez1]

Actually a 0% return adjusted for inflation is quite a bit better deal than you can get with most treasury bonds or CDs. A 1 year CD today actually gives you about a -2% return adjusted for inflation.

If you count dividends, then the stocks are actually returning a small positive return..maybe 2% to 4% after inflation.

Actually, the one I was referring to did account for dividends, so it's about flat with inflation including dividends. From this link:

"To be clear, this means our model forecasts essentially flat real total returns to U.S. stocks over the next decade, including dividends, given current levels of market valuations."

[jteezie]

Be glad you were on vacation and did not panic sell. You should also pay less attention to the markets unless you want to make it your day job. I work in this industry and I still believe in the passive investment strategies for my retirement accounts.

[jaro80]

Just came back from vacation; spent $2000 budgeted...and now the market keeps tanking, which I knew it would. But I didn't expect market to behave like this after the so-called "armageddon" averted; paper loss of about $6K in retirement so far. Hate this!!!!!

I still think this is a good time to buy. I purchased a home last time there was an "armageddon" and now the value is up 100k. I'm not in the market for stocks now, but i would still invest while thinks are a little shakey.

[tripods68]

This week was pitiful. I still believe we are DOW below 10K.

I'm just glad I've reallocated portfolio back in July to 60% bonds, 30% stocks 10% Cash. I'm might keep this allocation for a while.

[esb3357]

As far as I can see, the market dropping means buy, buy, buy.

[tripods68]

As far as I can see, the market dropping means buy, buy, buy.

True. But that problem many times you have to sell some of your holdings at a loss to buy OR just now getting back in
The market after being on the sideline for a while. Unless you have plenty in cash reserve to buy it's perfect time to buy. Unfortunately most people aren't in that situation. But I agree it's buy time!