Dow Falls 600 | Bloggers Lair | Yakezie Forums

Just letting you guys know.

I was watching it this afternoon and saw the Dow "battle back" to -350 or so, and then it plummeted to -600…. Crazy. I'm still young, so I don't feel that affected by the drop, but I work with some older folks and they are getting pretty nervous. In fact, one of them gave me a sad look and said, "Am I ever going to get out of this place!?"

It was pretty sad… Poor baby boomers.

LifeAndMyFinances said:

I was watching it this afternoon and saw the Dow "battle back" to -350 or so, and then it plummeted to -600…. Crazy. I'm still young, so I don't feel that affected by the drop, but I work with some older folks and they are getting pretty nervous. In fact, one of them gave me a sad look and said, "Am I ever going to get out of this place!?"

It was pretty sad… Poor baby boomers.

That's why I've mentioned before that only by being a full time investor can you achieve good returns.

Tony Chou @ Investorz' Blog said:

My Personal Finance Journey said:

Time to pump another $200 in to an index mutual fund.

All I'm saying is that you better watch out. If QE3 doesn't work (when it probably will be announced tomorrow), prepare for a fall to DOW 10k.

Tony, what's your indicator of QE3 success?

Crazy day. My husband and I waffled on selling some shares of a company we've held for two years. Based on the drop, we sold (hoping to buy back into it once it looks more promising!). At least my mutual funds are doing okay.

That is very sad, though I would hope that they learned from 2008 that if they are that close to retirement the majority of their portfolio should not be in stocks. Then again, I haven't looked at bonds lately–how are they fairing?

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LifeAndMyFinances said:

I was watching it this afternoon and saw the Dow "battle back" to -350 or so, and then it plummeted to -600…. Crazy. I'm still young, so I don't feel that affected by the drop, but I work with some older folks and they are getting pretty nervous. In fact, one of them gave me a sad look and said, "Am I ever going to get out of this place!?"

It was pretty sad… Poor baby boomers.

Financial Success for Young Adults said:

Tony Chou @ Investorz' Blog said:

My Personal Finance Journey said:

Time to pump another $200 in to an index mutual fund.

All I'm saying is that you better watch out. If QE3 doesn't work (when it probably will be announced tomorrow), prepare for a fall to DOW 10k.

If you're expecting an announcement tomorrow, I might just move the guest post up so it doesn't seem dated. I haven't been keeping up with it enough to know.

Yes, please do that. I never knew that the current market events would happen so fast!

moneybeagle said:

I don't think the time is right for QE3.  I will go on a very contrarion view and say that the Fed should consider raising interest rates.

Why?

Because right now the markets are in 'Damned if you do, damned if you don't' mode.  Investors at this point have proven that they're just going to shrug off anything that would normally be perceived as 'good news' for the market.  In other words, they're going to send the market down regardless of whether QE3 happens or not, so at this point, I say hold off on QE3 at least until rational reasoning makes a return back to Wall Street.

Some of your points do make sense. It's true that in panics like this, investors tend to discount all good news. But if the Fed doesn't enact QE3, it means the markets are going into a freefall. But if they do, at least the Fed will buy some time, and the freefall won't be as bad as it would have been.