When GM declares bankruptcy markets should drop correct?

[noob_trad3r]

I would like to go long again on some equity but I would rather wait for another drop. My thoughts were that when GM announces Ch11 there should be a decent drop on the S&P correct?

 

[krazykarl]

no - the market already expects it to happen. it's priced in.

 

[drjekyllus]

Quote from noob_trad3r:

I would like to go long again on some equity but I would rather wait for another drop. My thoughts were that when GM announces Ch11 there should be a decent drop on the S&P correct?

I certainly expect them to declare bankruptcy and I think that is probably the view of most. It really should not be a huge surprise. The real news will be if any unexpected stipulations are announced with the bankruptcy.

 

[maninjapan]

the way the market has been reacting to news these days, you could even expect a post GM bankruptcy rally

 

[GG1972]

"the way the market has been reacting to news these days, you could even expect a post GM bankruptcy rally"

Now that is behind us lets rally another 10%

 

[Brandonf]

Everyone knows it's gonna happen, so its not gonna surprise anyone.

 

[robbie380]

Quote from noob_trad3r:

I would like to go long again on some equity but I would rather wait for another drop. My thoughts were that when GM announces Ch11 there should be a decent drop on the S&P correct?

it may rally the day gm declares but i am thinking that the reality of the sugical bankruptcy of chrysler and gm will be smash and it will take awhile to work out. this could weigh on the market.