Dow is down over 300 Points | Page 2 | TigerDroppings.com

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saving$
LSU Fan
Member since Nov 2012
34 posts

re: Dow is down over 300 Points


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
508 posts

re: Dow is down over 300 Points


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


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 / Orange County
Member since Nov 2010
4054 posts

re: Dow is down over 300 Points


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
508 posts

re: Dow is down over 300 Points


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
25237 posts

re: Dow is down over 300 Points


doesn't say too much about the efficient market theory.





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BennyAndTheInkJets
Arkansas Fan
NYC / Orange County
Member since Nov 2010
4054 posts

re: Dow is down over 300 Points


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
16999 posts
 Online 

re: Dow is down over 300 Points


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 / Orange County
Member since Nov 2010
4054 posts

re: Dow is down over 300 Points


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
16999 posts
 Online 

re: Dow is down over 300 Points


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
22078 posts

re: Dow is down over 300 Points


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
Washington DC metro
Member since Mar 2008
30341 posts
 Online 

re: Dow is down over 300 Points


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
6523 posts

re: Dow is down over 300 Points


Yeah, giving me a heart attack 9 minutes into he session.





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BACONisMEATcandy
LSU Fan
Delta, Amex, & Über Threads
Member since Dec 2007
41908 posts

re: Dow is down over 300 Points








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C
LSU Fan
The Woodlands, TX
Member since Dec 2007
22078 posts

re: Dow is down over 300 Points


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
Washington DC metro
Member since Mar 2008
30341 posts
 Online 

re: Dow is down over 300 Points




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
862 posts

re: Dow is down over 300 Points


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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