2011 Global Stock Market Collapse Watch

Originally posted by 12345lonestar
reply to post by majesticgent

 

The annoying thing about the long term holding strategy has is that inflation is killing us. Most charts do not show the market in comparison to inflation. That chart looks much more depressing. And we have lost anywhere from 10-30% of our dollar value against many of the other major currencies in the past year.

Yeah that is the beast of it all. I thought for sure the stocks I bought back in 08 would be up by now, but they aren't so eventually I'll have to cut my losses or get bled to death from inflation.

Canada opens at a 2.8% loss, but it appears that it is trending upwards.

Canada - GSPTSE

Hanging around the 11.85k mark.

Major indexes are down and it looks like TPTB are going after gold prices too. This makes sense because they want you to believe in fiat currency. In a market crash, mining stocks also go down. Some gold bugs only buy the real metals. Other mutual funds buy the metals on your behalf and store them, so the fund price is directly linked to the metal prices with no smoke and mirrors.

I can just see all the executives running around like headless chickens wondering who they should lay off next (if they had a head).

Originally posted by majesticgent
In other news: South America's markets are not looking so well right now, but it is still early.

Chile - IPSA

close to being down 9%

edit on 8-8-2011 by majesticgent because: whoops

Chile is taking a nose dive towards a 10% loss within an hour. Wonder if they'll stop trading if this downward spiral continues.

reply to post by majesticgent


Strangely enough, U.S. dollar index is strenghening www.bloomberg.com...:IND

A sign of possible QE coming to the bond markets?

I cant find the link but a hedge fund manager said the he expects QE3 by the middle of next week (around 8-17)

Edit to add: Gold is headed back toward 1700, keep an eye on that

reply to post by Skerrako


Is the dollar strengthening because of the ECB injecting money into Spain and Italy? Seems like the FED is doing the same thing behind the scenes. Yes looks as if gold went down just enough, so that people could buy it now with the sell off we saw when the markets opened..

Meanwhile the Dow Jones is taking a nose dive towards a 3% loss. Does it appear investors are moving to gold and backing the dollar getting out of stocks, or just riding the wave seeing how low it can go before they reinvest?

Dow Jones Index

reply to post by Skerrako


the dollar will strengthen as the stock markets drop. This is normal. When the markets go down, it's because more people are selling than buying. In a downward trend, like this, the folks selling are, basically, saying they don't have faith in the stock market. so, where do they put their money? In instances like this, they are, usually, holding the cash. This indicates a consensus that the dollar is stronger than the markets, thus, the dollar goes up in value.

Unfortunately, as the dollar increases in value, the debt we are saddled with becomes more expensive, making our economic outlook bleaker.

reply to post by Crakeur


Thanks you answered my questions eloquently and let me know I'm on the right path of thinking. I'm getting better at understanding how this all plays out.

I am having a severe case of Déjà vu....

glued to the crash threads.

Fannie may and freddie mac have just been downgraded.

Randgold Resources Ltd has gone up 260pts, I am unfamiliar with this company but by the name it seems like it deals in gold.



Dow down over 360pts, i think we may see a 500pt plunge today.

Dow Jones: hit -3%

NASDAQ: hit -4%

Argentina MERV: opens to a -4% loss within 10 minutes of opening and it's still trending downwards.

Please insert optimism here. I'm still level headed and think this is just a sell off and the bargain hunters will swoop in soon, but it appears no one has any faith in the markets anymore.

ETA: Argentina just hit -5%

reply to post by Trolloks


Freddie and Fannie were both downgraded. Makes sense since they are both propped up by the US gov't

Randgold is a mining company and that big jump is a 5% increase which is tied to the gold market.

Personally, I think gold is way over valued as a result of guys like Alex Jones preaching gloom and doom and economic disaster which is sponsored by a gold merchant which, I believe, is a co-owned by Mr. Jones.

reply to post by Crakeur


You'd think with gold being so high, that people would flock to silver, but didn't it have a massive sell off a few weeks ago?

reply to post by majesticgent


first rule of the markets, post 9/11 and the 08 debacle, don't think. everything that made sense when we were younger has been thrown out. I had a client who went back to school to get his MBA in 09 and he said that they didn't have text books because the rules had all changed.

Originally posted by majesticgent
Dow Jones: hit -3%

NASDAQ: hit -4%

Argentina MERV: opens to a -4% loss within 10 minutes of opening and it's still trending downwards.

Please insert optimism here. I'm still level headed and think this is just a sell off and the bargain hunters will swoop in soon, but it appears no one has any faith in the markets anymore.

The DOW is testing the 11,000 support. If it goes low enough investors will start buying. It may be at the bottom now or maybe not. I may start slowly buying at 10K, although it did bottom at around 8K in 2008.

reply to post by Nicolas Flamel


Yeah you beat me to just posting that. I notice that it trended upwards slightly as folks starting buying but it's going down again apparently they sold just that fast because it's going down again. It may yo-yo this way for awhile.

reply to post by Nicolas Flamel


if it remains down at the close (down by 3-5%), you will get panic selling from mutual fund holders and other investors who don't fully understand the markets (about 95% of investors). Once they start selling, we're in for a horrible ride down.

if, however, the markets manage to stabilize today, they might remain calm enough to ride this out and then we'll see a slower decline.

just my thoughts

reply to post by Crakeur


Now is it more of a read and react type of investment strategy until (if) things calm down then adopt the old rules? What is plan b?

Argentina may have to take a page from Israel's book and shutdown the market as they are approaching -6% within the first hour of trading. They seem to be in all out panic mode.

Argentina - MERV