Black Monday

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Quote from chanster:

yes but nobody talks about is the market leads the economy. so the market tumbling here will show up in earnings and the economy the next few months. thats what bernanke must understand. just like in 2000 the market lead the economy down
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hmm....and what about last May, and the May before that, and etc etc.....
 
Quote from dhpar:

short bonds offers better odds...
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I'm more surprised by the Treasury rally than the equity swoon. Short treasuries I can understand, but long treasuries? At 4.5% with inflation just shy of 3% and the dollar in a down trend?? Two years are so much the better investment.

I agree, short bonds offers better odds.
 
Quote from ByLoSellHi:

Go long.

I'm sure all that money flowing into treasuries has no correlation to confidence (lack thereof) in equities.

Good luck.
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Hey mr. Perma Bear.

The return on treasuries barely beats the "official" inflation and only saves half the real inflation.

So no smart money will be sitting in Treasuries.

The fact is that this very overdue correction is nothing but a scare to get rid of the weak hands and easily manipulated sheep. Also a play on leverage, kinda like bucket shop style.

Cash is a guaranteed losing proposition. Treasuries are not much of an answer.

Look, realistically, about half, if not more, of the equities are overpriced garbage. But there is a large number of quality names which translate into quality assets. So while I would never buy GOOG, I will always be a buyer of cheap miners, big pharma, proper renewable energy names, big-agri/GMOs, chemicals, defense/prisons and some other REAL asset equities.

So really, a sideways market that will eventually turn into another bull. And in case it's hard to figure out, any money out of emerging markets will go into either Europe or US, as the "safe" choice with decent returns. US has always been the better choice.
 
Quote from Aaron:

I'm more surprised by the Treasury rally than the equity swoon. Short treasuries I can understand, but long treasuries? At 4.5% with inflation just shy of 3% and the dollar in a down trend?? Two years are so much the better investment.

I agree, short bonds offers better odds.
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BRIC money repatriating the U.S. perhaps?
 
Quote from SethArb:

one reason might have been the ETF's that track the e minis traded higher After hours friday so perhaps there was some arbitrage going on here
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ok, was just interesting seeing ES opening higher...
while big selling in Asia was already under way..
 
Hydro, I'm only a bear until we finish this selloff and see consolidation.

Are there great companies that are getting sold off now? Yep.

Are they worth buying now? I don't know. Everything is getting hit.

I was very bullish last June. I am not a permabear.

p.s. - You're right. At least 1/2 of all equities are overpriced garbage. Probably more. I, too, will be looking to buy the cream of the crop when this correction is finished, whenever that may be.

Also, cash is a winner now. 5.5% plus negative loss of (x) in equities = 5.5% + x.
 
I can see the future. I will be forced to scalp some "over sold" equities and spend the rest of the day listening to the Ivey leagued talking headed "horses asses" telling the masses how great a buy the mkt. is. I am a technical trader, therefore, i see doom on the horizon.
 
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