Dow about to breach 9K level

[sweeps]

Currently at 9106.

(How long before I post a thread "Dow about to breach 8K level"?)

[disneysteve]

Just 3 days later than the 10K thread. Rather scary.

[bjl584]

We just went under 9K in intraday trading. 8997 last I checked. Where is the bottom? This is a 7 day losing streak and counting.

[indycobra]

Below 8900!! Somebody tell me not to worry please. Im afraid to invest in my roth anymore.

[Broken Arrow]

I don't really know where the bottom is. I don't think anyone really does.

However, I do think that we are closer to the end of this than not. I don't think any response can be greater than governments coordinating measures to stem the tide. In fact, what physical issues that can be addressed are being addressed. The problem now is a matter of market confidence, and people are being extremely irrational right now.

But once it starts to subside? Boom. Monster rally.

Do I know this for sure? No. Again, just as no one can predict the bottom, the same can be said of its subsequent rally. However, while the issues are grave, I think the market panic is way over what it should be for the given situation.

So you know what? Let it slide. The lower it goes, the better chance I can get in at an even better price, and the greater the snapback. My only regret is that I don't have more money to buy into this market.

[tripods68]

The bottom would be 5000 points.

But I don't want to scare you

[bjl584]

We're currently down over 600 points.

[simpletron]

I hope it stay down for one more day because I get my last double paycheck tommorrow. most of which is going into the stock market somewhere. right now, I'm out of cash to invest without digging into my EF or I-bond reserve.

[bjl584]

At this rate we'll be at 0 within the next two weeks.

[disneysteve]

But once it starts to subside? Boom. Monster rally.

We can only hope. All I know is I've been sitting on the sidelines watching all week but I'm about to jump in.

[sweeps]

But once it starts to subside? Boom. Monster rally.

Maybe, maybe not. This may have been enough to push a lot of people out of stock investing. Old people forever. Young people long enough until they forget about the Credit Crisis of 2008.

[tripods68]

According to RBC Capital forecast: 300 banks will fail over the next 3 years.

According to Bauer Financial: 426 additional banks are grappling major problems, not necessarily will fail, but on FDIC watch list.

Independent Weiss Research: 1479 FDIC members are at risk, 158 thrifts with total assets 3.2 Trillion. 1 of every 9 banks are risk to fail.

The next industry that will be hit the hardest are losses from commercial loans portfolio. Analyst are expecting losses to accelerate towards, and potentially exceed, historical peak losses over the coming quarters. This is were most of Wells Fargo revenues comes from. If Wells go, the whole banking industry go.

In other words, this market have yet to reach the bottom. This is just the beginning--1 year down 3 more years of downturn.

BTW: 117 total banks FDIC protected so far this year according to FDIC, but it's downplaying the bank failures beyond 117.

[disneysteve]

Maybe, maybe not. This may have been enough to push a lot of people out of stock investing. Old people forever. Young people long enough until they forget about the Credit Crisis of 2008.

Hopefully, there will be lots of young people who see this as the opportunity of a lifetime to buy stocks at 2003 prices. If you've got 30+ years ahead of you, why not get in now?

[sweeps]

Hopefully, there will be lots of young people who see this as the opportunity of a lifetime to buy stocks at 2003 prices. If you've got 30+ years ahead of you, why not get in now?

Agreed, but it's not human nature. We've been wired to run with the pack and, even more importantly, to never go back to that cave where you just got mauled by a gigantic bear.

[disneysteve]

I've said a few times recently that the time to buy is when there is blood in the streets (actually I didn't say that, Baron Rothschild did). The streets are looking mighty bloody right about now.