2008 Stock Market Crash

[SatinKzo]

Fed took a machete to the funds rate, kind of like putting a bandage on a severed artery at this point, but they gotta start somewhere.
Fed slashes rates - Jan. 22, 2008

As for buying stocks, I have not stopped, nor do I plan to stop. I'll continue to buy every month like I have for the past 8 years. Surprisingly YTD, I am only down 1.8%.

 

[Neutron]

Dow opens at a 400 point loss. Ouch.

 

[jpdubose]

Dow opens at a 400 point loss. Ouch.

Down only 160 now. It's probably going to get worse before it gets better, but it's not a bad time to start buying while things are down.

 

[bhelms]

Buy low, sell high. This is certainly NOT the time to be selling. But like SatinKzo, I will continue to buy, in level dollars, throughout the current "crisis". It's called dollar cost averaging and generally works out very well over the longer haul. Remember how the market crashed after 9/11? 57 days later it was back. I have no reason to believe it won't come back again. This is a great time to have very minimal debt, however, in case the downturn is longer.

For all you chicken littles out there, I have some helmets for sale...

 

[TheForce]

golliebob- Hold off on buying the stock until it turns. You don't buy enough to affect the US Market trend so wait it out. Buiy on the way up, not on the way down.

I hereby give thanks that I locked in my fathers portfolio to a more conservative 4.5%-7.0 % variable with floor/ceiling interest as opposed to what he did have which was floor nothing and ceiling 17%. I moved it the last time the market crashed and it took $18,000 from him in one month but effected a save before it took more. Now, at least while this present day market is taking a nose dive at least his portfolio will be gaining 4.5%.

Personally, I am still in debt reduction mode. Yesterday, I moved my last 1.99% credit card loan to a 0% for 18 months. Capital One has these deals now so I am taking advantage of them. Does it really pay to pay off a credit card at 0% interest? I just make sure I make thise minimum payments 100% against the principal. Now with this 0% interest on all my debt load, I will likely be debt free by November.

I heard yesterday that the Fed is considering a law change on sect 179, eliminating all the limitations for small business. I will be looking at these opportunities to expand my business assets and take full tax deductions against income if this happens. Otherwise, I will be staying the course for debt reduction.

What all this means is that unless the market crash affects my business in a negative way, like clients who go bankrupt, it actually stands to benefit my bottom line.

anyone else find themselves in this position?

 

[Stargazer]

I saw the DOW down only 35 points. It was down around 200 points prior to that but now it is down around 138 points but my DVR is delayed an hour and a half. It sure is jumpy. I figure some people are trying to buy low and sell high.

From an article I read on Yahoo, if the Feds cut the interest rates, just as they have, then it will only help short term but will cause a bigger recession later on, as a cut in the interest rates will cause inflation to be much higher as it happened back in the 70's and someone finally took care of the situation in the early 80's in which had a consequence to the economy at that time but had to be done. The article said we were better off to go through this small recession instead in which would take care of the inflation issue.

 

[Van]

Im definitely not an expert on stocks so call me chicken little if ya want but it almost seems like buying stocks right now would be comparable to buying a new car, take it off the lot 5 mins after signing the papers and its worth $5G less. My only experience was an employee stock purchase program through dish and I rarely made any money on dish stocks as they pretty much stayed at the purchase price or would drop or raise a little.

I saw at one point this morning that the dow was down -416.32 points, around 2pm it was around -138.16 so it was coming up but I have no idea what it closed at.

 

[Stargazer]

I think it lost about 120 points or something like that.

If I could have bought Dish stock when I wanted to then I would have made lots of money but it was not on the stock exchange yet.

 

[Bob Haller]

how long untill the oversold house industry has used up its inventory?

dont expect better times till that is over

 

[Stargazer]

It sure done a turnaround today from being down 250 points to gaining over 200.

 

[Ronald_Jeremy]

Does that count as a crash?

 

[teamerickson]

We are due for a correction. The average Bull (up) market lasts around 3 1/2 years. We have been in a Bull market for over 5 years (Since 2002). Bear (down) markets average about 16 months. Since the Bull market was longer than normal it probably will be a harder correction. Similar to the housing market. Although, hopefully not as severe. This is a great buying opportunity.