The Stock Market

Drifter · 02-11-14, 08:19 PM

For those of you that delve into the world of stocks and bonds.....you certainly know that things have been good lately. Well......take a look at the following graph. Notice how today's market is tracking, when compared with the 1929 market. Could we be headed for a crash?

Complete story here:

http://www.marketwatch.com/story/sca...ion-2014-02-11

Buck Henry · 02-11-14, 09:03 PM

I have all of my money buried in pork futures. Bacon is always a good investment.

PS: many safeguards exist today that did not exist in 1929. Not saying another super crash could not happen, but there are automatic "breakers" that are supposed to halt trading during panic selloffs. This way you get a more tempered adjustment versus a true market crash.

fishnpreacher · 02-11-14, 09:35 PM

Interesting....I have been watching

my retirement and it has done pretty good the past 12 months,

but has started dropping the past week or so.......

May be time to settle back into something a little safer......

....before I....

narcodog · 02-11-14, 09:46 PM

I read today that it was a slight correction that they have been expecting. It's not a full correction as the market did not drop enough points. With the market up nearly 20% in the last year a correction of 10 points is of little consequence. imop

raptor · 02-11-14, 10:39 PM

One of the most important factors that caused the "great depression" was not only the stock market, but that so many banks went "belly-up". Didn't have the federal insured funds that you have in place today.(I think funds are insured to $250k). My grand father was able to remove his money from the banks before they shut-down and never again put money in the bank. During the depression (he was a farmer so food was not a problem), he dealt with cash only and the "bartering system" for other necessities.. I think there is a song about a "country boy will survive"...

Having said that, I transferred my account from "high risk" markets back during the stock market debacle in the 90's to secure funds. Don't get the highs, but also don't lose anything when it turns south... I don't have the personality to worry about stocks..

SpeyBro · 02-12-14, 09:18 AM

Raptor, not sure what you mean by, "Didn't have the federal insured funds that you have in place today . . ." If by "funds" you mean cash money and the risk of losing it by fraud on the part of the entity where the cash is deposited, then yes, SPIC and FDIC programs are there for the investor's protection. But unless I'm missing something big here, there is no insurance for 'market risk' when you purchase a stock fund, bond fund, commodity fund . . . One can create a portfolio with varying risk esposures---but you can't eliminate completely market risk from the equation.

raptor · 02-12-14, 10:31 AM

Quote:

Originally Posted by SpeyBro

Raptor, not sure what you mean by, "Didn't have the federal insured funds that you have in place today . . ." If by "funds" you mean cash money and the risk of losing it by fraud on the part of the entity where the cash is deposited, then yes, SPIC and FDIC programs are there for the investor's protection. But unless I'm missing something big here, there is no insurance for 'market risk' when you purchase a stock fund, bond fund, commodity fund . . . One can create a portfolio with varying risk esposures---but you can't eliminate completely market risk from the equation.

I was talking about the FDIC which was passed into law in 1933 (I think). Before then, if the bank "ran out of money"...then you were SOL...

JOHNKIES · 02-12-14, 11:23 AM

I believe the stock market no longer reflects the actual economy anymore than a win streak in Vegas says you are a great gambler. The primary reason is that stocks bear no direct relationship to a company's actual net worth or value, but are a tool for speculators. Ask any corporate executive today what is the most important thing to the company? They will respond "Share Holder Value" which translates to stock price. Easiest way to do this is keeping large amounts of cash in hand driving up the speculative value so corporate and individual share holders see more $$$ on paper. This is where the biggest hole exists in their highway paved with gold because at some point the company has to invest in the business or go belly up. If multiple large corporations blow out at the same time the last recession will look mild in comparison. Another reflection of the very short view of today's CFOs.

In the mid 1980s Equifax technology planners visited a company in Boston that had developed a very early version of on-line trading with a new system that predicted where any stock price would go. The technology was impressive and the company could have just ruled the market but they were actually selling this system. At one point in the afternoon, a senior aide walked into the executive conference where we were meeting with the company's President. A whispered conversation and the president said their system had just predicted a major decline/collapse and said this company should sell all their stocks immediately. The president approved the sale and the next day was when the market collapsed for the 1980s recession. That lesson has stayed with me. And it is one more reason why the stock market is a bogus economic indicator. There is no real concern for the value of the company, only the price of the stock and whether it's headed up or down.

bigorangefan · 02-12-14, 11:31 AM

Stock market advice and comments from a bunch of fishermen. hmmmm

Drifter · 02-12-14, 11:45 AM

Quote:

Originally Posted by bigorangefan

Stock market advice and comments from a bunch of fishermen. hmmmm

Don't forget the free legal and medical advice as well.

02-11-14, 08:19 PM	#1
Drifter Former Director, HOF Join Date: Dec 1998 Location: Newnan, GA Posts: 10,260	The Stock Market For those of you that delve into the world of stocks and bonds.....you certainly know that things have been good lately. Well......take a look at the following graph. Notice how today's market is tracking, when compared with the 1929 market. Could we be headed for a crash? Complete story here: http://www.marketwatch.com/story/sca...ion-2014-02-11 __________________ The Drifter The contents of this message might be totally inaccurate, misguided or otherwise perverse. If you are stupid enough to follow any of the tips listed here and mess up yourself or your equipment, I am absolved of all responsibility. The information contained herein is based on my personal experience and by no means constitutes the correct way to do it. Your mileage may vary. Follow me on Instagram

02-11-14, 09:03 PM	#2
Buck Henry Former NGTO President, Sith Lord, FKA Bhuk Henri Join Date: Jun 2005 Location: Kennesaw & Cherry Log Mountain Posts: 11,910 Blog Entries: 5	I have all of my money buried in pork futures. Bacon is always a good investment. PS: many safeguards exist today that did not exist in 1929. Not saying another super crash could not happen, but there are automatic "breakers" that are supposed to halt trading during panic selloffs. This way you get a more tempered adjustment versus a true market crash. __________________ Message sent from your mom's bedroom during pillow talk Buck Henry Simple Goat Herder Former NGTO President Hall of Fame Member

02-11-14, 09:35 PM	#3
fishnpreacher Board of Directors Chaplain, Hall of Fame Join Date: Oct 1998 Location: Just this side of Heaven Posts: 6,747	Interesting....I have been watching my retirement and it has done pretty good the past 12 months, but has started dropping the past week or so....... May be time to settle back into something a little safer..........before I.... __________________ BE DIFFERENT AND MAKE A DIFFERENCE! <IXOYE>< Exodus 29:18 Then burn the entire ram on the altar. It is a burnt offering to the LORD, a pleasing aroma, a food offering presented to the LORD. God loves BBQ!

02-12-14, 09:18 AM	#6
SpeyBro Native Join Date: Nov 2007 Location: savannah, GA Posts: 217	insurance? Raptor, not sure what you mean by, "Didn't have the federal insured funds that you have in place today . . ." If by "funds" you mean cash money and the risk of losing it by fraud on the part of the entity where the cash is deposited, then yes, SPIC and FDIC programs are there for the investor's protection. But unless I'm missing something big here, there is no insurance for 'market risk' when you purchase a stock fund, bond fund, commodity fund . . . One can create a portfolio with varying risk esposures---but you can't eliminate completely market risk from the equation. __________________ SpeyBro

02-12-14, 11:23 AM	#8
JOHNKIES Hall of Fame Member Join Date: Nov 1998 Location: Laurel Park, NC USA Posts: 5,942	Stock Market vs. Economy I believe the stock market no longer reflects the actual economy anymore than a win streak in Vegas says you are a great gambler. The primary reason is that stocks bear no direct relationship to a company's actual net worth or value, but are a tool for speculators. Ask any corporate executive today what is the most important thing to the company? They will respond "Share Holder Value" which translates to stock price. Easiest way to do this is keeping large amounts of cash in hand driving up the speculative value so corporate and individual share holders see more $$$ on paper. This is where the biggest hole exists in their highway paved with gold because at some point the company has to invest in the business or go belly up. If multiple large corporations blow out at the same time the last recession will look mild in comparison. Another reflection of the very short view of today's CFOs. In the mid 1980s Equifax technology planners visited a company in Boston that had developed a very early version of on-line trading with a new system that predicted where any stock price would go. The technology was impressive and the company could have just ruled the market but they were actually selling this system. At one point in the afternoon, a senior aide walked into the executive conference where we were meeting with the company's President. A whispered conversation and the president said their system had just predicted a major decline/collapse and said this company should sell all their stocks immediately. The president approved the sale and the next day was when the market collapsed for the 1980s recession. That lesson has stayed with me. And it is one more reason why the stock market is a bogus economic indicator. There is no real concern for the value of the company, only the price of the stock and whether it's headed up or down.

02-11-14, 09:46 PM	#4
narcodog Native Join Date: Feb 2007 Location: N Ga. Posts: 1,805	I read today that it was a slight correction that they have been expecting. It's not a full correction as the market did not drop enough points. With the market up nearly 20% in the last year a correction of 10 points is of little consequence. imop

02-11-14, 10:39 PM	#5
raptor Native Join Date: Oct 2009 Location: Columbus, GA Posts: 905	One of the most important factors that caused the "great depression" was not only the stock market, but that so many banks went "belly-up". Didn't have the federal insured funds that you have in place today.(I think funds are insured to $250k). My grand father was able to remove his money from the banks before they shut-down and never again put money in the bank. During the depression (he was a farmer so food was not a problem), he dealt with cash only and the "bartering system" for other necessities.. I think there is a song about a "country boy will survive"... Having said that, I transferred my account from "high risk" markets back during the stock market debacle in the 90's to secure funds. Don't get the highs, but also don't lose anything when it turns south... I don't have the personality to worry about stocks..

02-12-14, 11:31 AM	#9
bigorangefan Native Join Date: Apr 2009 Location: Alpharetta physically, standing in a stream mentally Posts: 918	Stock market advice and comments from a bunch of fishermen. hmmmm

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