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saving$ 
LSU Fan
Member since Nov 2012
34 posts
| re: Dow is down over 300 Points (Posted on 11/7/12 at 10:19 pm to dewster)
quote:
What's the best way to prepare for the "fiscal cliff"? I just don't see compromise happening.
Pick a stock/bond asset allocation you feel comfortable with and stay the course.
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LSUTOM07
LSU Fan
Baton Rouge
Member since Dec 2011
269 posts
| re: Dow is down over 300 Points (Posted on 11/7/12 at 10:29 pm to saving$)
quote:
Pick a stock/bond asset allocation you feel comfortable with and stay the course.
The question is when to jump in
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saving$
LSU Fan
Member since Nov 2012
34 posts
| re: Dow is down over 300 Points (Posted on 11/7/12 at 10:32 pm to LSUTOM07)
quote:
The question is when to jump in
Ah yes, I don't believe in market timing. Can't help you there. Good luck!
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BennyAndTheInkJets 
Arkansas Fan
NYC
Member since Nov 2010
2824 posts
 Online
| re: Dow is down over 300 Points (Posted on 11/8/12 at 7:28 am to saving$)
quote:
Ah yes, I don't believe in market timing. Can't help you there. Good luck!
I'm a huge lover of technicals, and even I full heartedly agree with this.
Market timing is a myth that exists from hindsight.
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LSUTOM07
LSU Fan
Baton Rouge
Member since Dec 2011
269 posts
| re: Dow is down over 300 Points (Posted on 11/8/12 at 6:14 pm to saving$)
quote:
Ah yes, I don't believe in market timing. Can't help you there. Good luck!
Maybe I used a bad choice of words but I didn't mean trying to time the market.
It would be detrimental to make big investments in stocks, even with excellent numbers and fundamentals, if the fiscal cliff triggers a recession similar to the one in 08.
So for me, the question is when to jump in. (Before we reach the fiscal cliff, or after decisions are made and wait to see how the market reacts.)
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Tigah in the ATL
LSU Fan
Atlanta
Member since Feb 2005
20708 posts
| re: Dow is down over 300 Points (Posted on 11/9/12 at 12:34 am to CajunTigerBabe)
doesn't say too much about the efficient market theory.
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BennyAndTheInkJets
Arkansas Fan
NYC
Member since Nov 2010
2824 posts
Online
| re: Dow is down over 300 Points (Posted on 11/9/12 at 7:43 am to Tigah in the ATL)
quote:
efficient market theory
I'm not sure what the bigger waste of time teaching in academia is, the efficient market hypothesis or the capital asset pricing model.
Both of these are absolute jokes at this point in time. Academia really needs to stop teaching finance in a static manner, correlations and relationships change all the time and models only work for a period of time. The ONLY relationships that will hold true are the inverse relationship between prices and yields, and that prices are determined by supply and demand. Everything past that can be broken at any time.
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TheHiddenFlask 
Clemson Fan
The Welsh red light district
Member since Jul 2008
16386 posts
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quote:
I'm not sure what the bigger waste of time teaching in academia is, the efficient market hypothesis or the capital asset pricing model.
Both of these are absolute jokes at this point in time. Academia really needs to stop teaching finance in a static manner, correlations and relationships change all the time and models only work for a period of time. The ONLY relationships that will hold true are the inverse relationship between prices and yields, and that prices are determined by supply and demand. Everything past that can be broken at any time.
That law is broken all the time.
Hooray free shite from the government.
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BennyAndTheInkJets
Arkansas Fan
NYC
Member since Nov 2010
2824 posts
Online
| re: Dow is down over 300 Points (Posted on 11/9/12 at 1:10 pm to TheHiddenFlask)
Wouldn't they still fall in the demand category?
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TheHiddenFlask
Clemson Fan
The Welsh red light district
Member since Jul 2008
16386 posts
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Supply is fixed
Demand is completely elastic at the price point
Price is zero
Not sure if that counts as working or not. I think demand is being driven by the price in that scenario. The market clearing price is certainly above 0.
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C
LSU Fan
The Woodlands, TX
Member since Dec 2007
17422 posts
| re: Dow is down over 300 Points (Posted on 12/17/12 at 7:42 am to C)
quote:
I'll take a friendly wager that it is back to Tuesday's close in less than 30 days.
I was off by a few days.
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foshizzle
LSU Fan
Member since Mar 2008
25163 posts
| re: Dow is down over 300 Points (Posted on 12/17/12 at 8:35 am to C)
Bumping a thread with the title "down over 300 points" deserves a great big 
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Athanatos 
Vanderbilt Fan
Baton Rouge
Member since Sep 2010
5617 posts
| re: Dow is down over 300 Points (Posted on 12/17/12 at 8:40 am to foshizzle)
Yeah, giving me a heart attack 9 minutes into he session.
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BACONisMEATcandy
LSU Fan
My opinions are my own
Member since Dec 2007
37678 posts
| re: Dow is down over 300 Points (Posted on 12/17/12 at 8:50 am to Athanatos)
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C
LSU Fan
The Woodlands, TX
Member since Dec 2007
17422 posts
| re: Dow is down over 300 Points (Posted on 12/17/12 at 8:56 am to foshizzle)
quote:
Bumping a thread with the title "down over 300 points" deserves a great big
Yeah sorry about that. For whatever reason I thought of that "bet" i made and wanted to follow up. Maybe the OP can change the title or an admin can intervene. Sorry...
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foshizzle
LSU Fan
Member since Mar 2008
25163 posts
| re: Dow is down over 300 Points (Posted on 12/17/12 at 9:37 am to C)
Don't worry, but for a second there I thought maybe TD was ahead of the major news services again.
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dunkelman
LSU Fan
shreveport
Member since Oct 2005
775 posts
| re: Dow is down over 300 Points (Posted on 12/17/12 at 9:11 pm to TheHiddenFlask)
That law is not broken without consequences, many of which are unintended. It's a law. Like gravity. We can go up in plane and simulate weightlessness so astronauts can train. Eventually, the law self -corrects and you better be holding on to something.
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