Investors, how low do you think the markets would go before recovering?

I honestly expect things to hold their own. Copper prices have been steadily climbing for quite a while now which tells me demand for copper is growing and that is the canary in the coal mine for industrial activity. I know we are busier at my work than we have been in 2 years and so are my vendors. The bubbles of economic activity are out there despite all the doom and gloom. All we need is for Obama to grow a pair and start taking some initiatives to make this change he has promised for so long.

Not an investor, but I find this and this comforting.

I’m not an investor, though certainly all of my monetary worth is sitting in a rapidly declining 401(k) and a home (also rapidly declining in value). My investment advisor tells me that the market will begin to perform well going into the election year, as that is the historical track record on this. I’m wondering if we can’t rely on any historical record for anything at this point in time. It seems like we have forces at play that might not have existed in the past.

I will certainly use the current state of affairs to my best advantage and purchase some of the stocks that have tumbled this past week. I remain “guardedly optimistic.”

The entire drop today was a joke. It could largely be pinned on day traders.

The economy (as in companies and businesses) didn’t post any new major good news, but nor did they post any bad stuff, the market is stagnant.

Day traders dropped the market today over 300 points because of whatever the hell they feel like.

For example, I own stock in First Solar. Third party groups think based on First Solars income, debts, holdings, etc… the stock is worth between $140—$150 a piece. Its trading below $111 today. All thanks to day traders. They’re waiting to see how low it will go, or if one of the competitors will collapse before buying, there’s no reason it should cost $111.

As long as you have an entire industry of people who’s entire job is to “bet” money based on the fluctuations of the market, whilst providing absolutely zero back into the economy as far as production…... you will see huge ups and downs like this quite frequently.

Thanks everyone for the great posts!

@tedd Apart from daytraders, do you think the shorts is another “industry” by itself that drags down stocks way down too much?

I agree with Tedd’s observations—and I also think the highly automated systems are partly to blame. With a rapid decline, certain threshholds are crossed triggering automated sell orders. The brokers and day traders come out ahead regardless of the direction of the movement, it would seem; and this whip-saw action seems to be the “new normal.”

Well, Dow dropped 516 points to 11,384! The shorts have raked in a ton of money. Oh well…

I just do not have the stomach for buying any more stocks regardless of how low it goes. And I fear for tomorrow’s action. My head is spinning over today. I feel like an idiot.

@Aster I don’t reckon so but if it goes down enough and those same good stocks that went down below a buck when Dow hit 6000…if once again it touches that level, I think I’m going to buy. Those stocks went up 2000% in 8 months after dropping to a buck or so.

It will take between six to eight years for the economy to fully recover.

@YARNLADY Hope you’re right! : )

I don’t know but the last time the banks stocks went real low I bought Bank of America for under $5.00 a share and sold for over $13.00 I made some good dough that time, if it keeps going like it is and I have a few bucks to throw in and see what happens. Not sure what I would invest in this time but I would have to do my research and go with my gut again.

Yes, there is definitely money to be had as long as the timing is right. I got Ford at the wrong time but got a silver company right. But this drop surprised me. Hope the domino effect stops soon but I won’t mind if it goes down for good stocks that are temporarily battered. I need more capital though.

@mazingerz88 I would include short traders in the day trader group. They just sell crap quickly to turn a quick buck, no long term investment interest.