Black Monday

[ratkin]

I get my annual bonus from work in 2 weeks, and my plans are to buy while everyone else is selling.

Its very hard to do, but worth it. Sadly the market will probably have bounced basck by then

[Bobcat.]

The Nikkei has opened down almost 2% but the US futures for tomorrow's open are up a whopping 200 points.

http://www.cnbc.com/pre-markets/

[winner69]

Hey SLi is up, now who'd have thought This dog may yet bark.

and TTK was a while ago

You picking real winners now mate

[NZSilver]

This is a significant downtrend folks. No one can tell what the future will bring but I would say it will drop further before it turns. Yesterday was a grace day that allowed people to make a decision - hold or sell some of the portfolio (or buy more..). Some were expecting it to bounce back, however last night the down had one of its biggest intra day drops and closed another 3ish % down. The Chinese are pulling all the strings of intervention right now and their stock exchange is still going down (what would things look like with no intervention!!). Ive heavily cut my holdings (have been for 2 months now but got very aggressive yesterday, luckily most were still on significant gains - a few were not). But it is critical to preserve capital unless you really can ride it out for 2-5 years - if things dont turn. Because the worst thing you can do is say "Im long term & I dont care about day to day movements" and then sell later on when you may be sitting on much larger paper losses. It may bounce back but from what I have read - and Im very weak technically, however it looks like some major points have been broken, I wish it wasnt but this really may be more than a bit of volatility that turn positive again.

[couta1]

Hi All,
Can someone please comment/give their opinion on this.
I see so much of selling and my portfolio is in red like most people on here but 90% of the shares I own are all dividend paying shares with PE's between 10-20. I have not sold anything and I know as many on here have stated - when things get this bad sell sell sell, I am only 30 and I see with just dividends alone for the next couple years will bring me back in the black. I just don't really understand how taking the losses now and putting the $ in the bank with 3% interest or 5% on my investment property would be better than letting this play out. Is my thinking completely wrong? Should I be protecting capital?

Let me remind you of a true story about a rich American gent who invested heavily in a variety of solid stocks over a ten year period, over that period there were many Macro and micro corrections to the markets due to a variety of abnormal worldwide events, meantime he just enjoyed doing what he always did his golf,fishing etc and low and behold at the end of ten years he had more than doubled his money.

[BlackPeter]

http://www.stuff.co.nz/business/indu...nz-dollar-down

I love how Stuff are using this thread for quotes on their breaking news article!!

we are famous ! But makes you worry about the quality of the rest of their economical analysis ...

[couta1]

and TTK was a while ago

You picking real winners now mate

Dead right mate and if they go up by another 300% I'll be back in the blue.

[NZSilver]

LAC - if you really dont need the money in the next few years for a house or buisness or kids or whatever etc then hold them all to you are 65 - by then you will have gone through multiple events like this - and your portfolio will be worth a lot more as long as you have solid companies. but if you need the money in the short to medium term, don't get caught having to sell for massive losses if the market does really take a dive - its all about risk - you could reduce you risk by selling some of your portfolio and keeping a portion of it etc. That would be my advice.

[Bobcat.]

I wouldn't be surprised to see a sucker's rally tomorrow on Wall street and elsewhere - it may even last a day or two...but then those investors who are currently regretting not selling last week will do so, the auto bots will kick in, and down we go again. History repeating.

[Daytr]

Got to give it to Goldmansachs. Love em or hate em they called this six months ago saying global equities were over valued.
Thank goodness I generally listened to them as its unusual for a bank to talk down stocks & that's why I took notice.
US company profits have been falling, some dramatically others just not justifying their valuation.
Energy stocks & debt a very real concern. Its a huge sector with what I understand around a trillion of debt in the US alone.
Then media stocks started to do the same lately. Multi Nationals obviously impacted by a high dollar.
When 'things' i.e. commodities are priced lower dollar returns are naturally going to be lower as well off a lower price.
Valuation needs to reflect that. Its the ugly word that all Central Bankers dread.
Deflation.