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Dow Jones largest drop ever

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The Crash of 2008 has left the Dow 39.4% below its record close of 14,164.53 and the S&P 500 down 42% from its record close of 1,565.15. Ironically, both records were set exactly one year ago today. The Nasdaq is off 42.4% from its 2007 closing high on Oct. 31.

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P&G went down $5.22 today....That can't make my parents happy....:mad:

Markets:Dow: -7.3%Nasdaq: -5.5%

 

Stocks plunged in the final hour of trading Thursday, sending the Dow Jones industrial average down more than 675 points, or more than 7 percent, to its lowest level in five years after a major credit ratings agency said it was considering cutting its rating on General Motors Corp.

 

 

http://biz.yahoo.com/ap/081009/wall_street.html

I'm getting ready to buy......

Historically speaking the rebound will be fast and HUGE. I would suggest holding but who knows what will happen.

I'm getting ready to buy......

I'm looking myself for some real deals. I'm tempted to take a chance on GM. They were warned today that their credit rating might be reduced to junk status. GM stock was off 31%. GM corporate bonds may be an even better buy. They're selling at a substantial discount, plus you get priority over the common stock holders should the company go bankrupt. GMAC bonds are selling for about 14 cents on the dollar.

I'm getting ready to buy......

 

I think it's not done going down yet.

I think it's not done going down yet.

I don't think it is either. It probably has a couple more days in it.

I think it's not done going down yet.

 

I don't think it is either. It probably has a couple more days in it.

Even if it goes down, I know it will only go up eventually.

Historically speaking the rebound will be fast and HUGE. I would suggest holding but who knows what will happen.

So are you suggesting not to sell and hold on for the ride?

So are you suggesting not to sell and hold on for the ride?

 

You pretty much have to. If you have 10-20 years before you need to cash out, you're OK. If you say have less than 5 well you should have probably been in the bond market well before this happened. As far as a fast comeback, no way the markets recoup what will be a 40+ % loss within a short time frame. It will be years.

You pretty much have to. If you have 10-20 years before you need to cash out, you're OK. If you say have less than 5 well you should have probably been in the bond market well before this happened. As far as a fast comeback, no way the markets recoup what will be a 40+ % loss within a short time frame. It will be years.

 

2-3 years tops IMO....

You pretty much have to. If you have 10-20 years before you need to cash out, you're OK. If you say have less than 5 well you should have probably been in the bond market well before this happened. As far as a fast comeback, no way the markets recoup what will be a 40+ % loss within a short time frame. It will be years.

 

I just get sick looking at my 401k plan. I'm not one to check it every day either. I don't need it soon though.

So are you suggesting not to sell and hold on for the ride?

 

You pretty much have to. If you have 10-20 years before you need to cash out, you're OK. If you say have less than 5 well you should have probably been in the bond market well before this happened. As far as a fast comeback, no way the markets recoup what will be a 40+ % loss within a short time frame. It will be years.

 

I agree with what MAl said but not on the time frame. I forget where I saw it but I will try to find it.

Nikkei is down 10% right now. I think I'll wait another day before going into buy mode. My sharebuilder purchases will continue though.

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