When you base your success on the inflated stock market: DOW -666 Pts

So what happened?

Federal Fund Rate remain the same. Hopes for rise in March.

Has the bubble popped? Is Trump in big trouble if this continues? This is shortly after his PR stunt at the SOTU, boasting the stock market's health to his success.

https://www.npr.org/sections/thetwo-way/2018/02/02/582809604/dow-plummets-more-550-points

If It continues along this trend I expect two things to happen:

1) I assume the Republicans will reverse themselves and find a way to blame it on Obama.

2) The Democrats will also reverse themselves, and proclaim that the present economy has nothing to do with Obama.

If it turns out to be a short term dip I expect that both parties will again flip their flop. Both sides will point to the inconsistency of the other, while proclaiming it was totally different when they did it.

That's what I expect as well.

Derp Republicans, derp Democrats. Derp derp same ol’ derpity derp. Da deeeeerp.

On a serious note, a correction would be healthy.

Well, if you don't have stocks, it's a good time to buy. And if you do have stocks, hold on to them; the market will come back up.

It's been studied and all but proven that every ~10 years or so there is a crash of sorts to the market, and guess what? It's 2018, and what was ten years ago? The Great Recession.

It's time!!!!

Come on, man! You can't suggest people try to time the market like that on 10 year intervals. The "~" in your post needs to be repeated in big billboard sized font with flashing neon lights around it. And maybe an arrow or two.

Hahah I know, and sometimes it's more like 15 years.

Trying to think...it was 2008. Then the Dot Com bubble burst in like 1999 or so. Before that I think 1988 with Black Monday. Then there was the 70s and the fuel shortage which caused a bunch of havoc.

So maybe once per decade then?

I just really want to be like Cramer when I grow up is all :P

@mrbojangles25: OMG, that's a great idea.

I might consider that path, too. Then we can corroborate each other.

@mrbojangles25: “Bear Stearns is fine, don’t be silly.”

666?! That's the number of beast! =O

I am sure it will go back to normal in the coming days.

Thanks obama!

I think this gif should be posted along with that post.

Lol. Brings back good memories.

Hell and fire was spawned to be released! Amazing tune :D

sold 10% of my investments when it was at 300.

more sell off to come

ooof. this is painful to watch. panic is setting in a bit

just this past week

It's somewhat fair to credit Obama for 2017, since none of Trump's tax or trade policies were actually implemented for any of that year. A lot of the improvement in the stock market was based upon speculation that Trump's policies would be good for business, though. I really don't expect to see anyone crediting or blaming Obama for the economy moving forward from here, though. The recent tax cut is a pretty big change, and that is all Trump's.

Funny, Democrats were doing in in response to the State of the Union.

Besides, the policies of the sitting president doesn't have much of an impact on the current state of the economy. Their impact is felt about a decade down the line.

I dont think its the tax cut (and I am just guessing here) I think its that they know while the GOP is in power for 4 years they can pretty much do anything they want. They know even if regulations are in place they will be likely overlooked in many cases.

I think that is what is driving the market. Now employment I think is different but I have no theory on that.

With that said, given the current adminstration what makes me nervous is that I am not sure even if the unemployement rate is not a lie and if that came out it would really hurt the market.

@comp_atkins said:

ooof. this is painful to watch. panic is setting in a bit

just this past week

DOW dropped over 1,000 pts.

BTC is also tanking.

@Gaming-Planet said:

@comp_atkins said:

ooof. this is painful to watch. panic is setting in a bit

just this past week

DOW dropped over 1,000 pts.

BTC is also tanking.

from my admittedly very limited knowledge of the subject this is not altogether unexpected.

very low unemployment means pressures to increase wages means reduced profits for companies now having to pay employees more.

reduced profits = HOLY **** HOLY **** HOLY **** HOLY **** SELL SELL SELL SELL !!111!!!111 for the market.

it's a perfectly rational reaction :)

So you see a downturn for Wallstreet as an upturn for ordinary Americans?

@comp_atkins said:

@Gaming-Planet said:

@comp_atkins said:

ooof. this is painful to watch. panic is setting in a bit

just this past week

DOW dropped over 1,000 pts.

BTC is also tanking.

from my admittedly very limited knowledge of the subject this is not altogether unexpected.

very low unemployment means pressures to increase wages means reduced profits for companies now having to pay employees more.

reduced profits = HOLY **** HOLY **** HOLY **** HOLY **** SELL SELL SELL SELL !!111!!!111 for the market.

it's a perfectly rational reaction :)

@Serraph105:

That's what the media is saying.

More jobs, higher wages, more inflation, and possible higher Federal Fund Rates in March cause volatility.

There are dozens of reason to point that our economic system is broken, and that booms and busts or sharp dips in the stock market shouldn't be the norm.

I really dont think a good economy is the reason the stocks tanked.

The reason they tanked is that they (stocks) grew WAY to fast for just one month and people were reading articles about bubbles. I sold and had been thinking of selling for a week.

To be fair (as a side note) 'people' is not what drives the market, banks do. So its really not the thinking of random 'people' but rather what the banks are thinking. by that I mean most people either A. are not in the market at all or B. wrapped up in mutual funds and dont buy and sell often. but banks do buy and sell often

It's been a bubble.

Years of low rates and stimulus packs. The economy never really fixed itself after the great recession, they just postponed it for another day. I assume they hoped it would somehow fix itself if they waited a super long long with their current tip toe policies.

think about what I said.

'I really dont think a good economy is the reason stocks tanked'

This happens all the time, stock market crashes because Fed is going to increase interest rates. why does the fed increase interest rates? because the economy is running 'too good'. a 'good economy' is a silly reason to freak out

meanwhile, I lost $1300 yesterday.

Not freaking out, the loss was mostly in my mutual funds and ETF's which bounce back and I'm not using them for 30 years anyway.

I'm just saying, if people want to freak out, they can.

thing is, everything I have is at much lower prices BUT...those lower prices where an all time high not just 4 weeks ago.

The market was running way to hot the past 4 months. so its expected

The falling out of the market is the Obama economy running it's course.

FAR to predictable given the predictable Sean Hannity said just that not but less than 24 hours ago.

the thing is, even though we see it and its painful obvious and clear I am convinced people on the Right do not see notice,

@Serraph105: i don't see it as a good thing for "main street" or a bad thing.

i don't think the market is fully connected to the actual economy because of it's speculative nature and how much of it is run by human emotion, which is not rational :)

I'd say the economy is run by a lot of human emotion as well.

so true, I did ask a broker though this question 'if most people dont have retirement and most of them that do.. do not buy and sell on a regular bias who is actually making these day to day moves?' he said the bank are.

yup. you may have a retirement account with assets that are managed by someone else. while you personally may not be moving thing around, the fund managers themselves are constantly making adjustments

that and bots trading with bots

So much winning.

same. 5-digit losses since friday.

keep eyes on bigger picture and long horizon and you'll have much less stress