I lost about 2-3% on Tuesday. About $1-2000. I wasn't worried though, as I was kind of paranoid about a correction, but already prepared for it by selling off the more expensive stocks (capitalization-wise), like JOYG.

How did everyone else do?


Article 1: What happened?
Article 2: Why it happened?

Worldwide sell-off follows Chinese stock plunge

quote:

Worldwide sell-off follows Chinese stock plunge By Floyd Norris and Jeremy W. Peters Published: February 27, 2007 NEW YORK: Stock markets around the world plummeted Tuesday in a wave of selling set off by a plunge in China that was reinforced by worries of weakening economies. The falling prices continued in early Asian trading Wednesday. While China was the first market to tumble, it was not clear what set off the selling. But once it began, it spread first to other Asian countries, then to Europe and the United States.

What caused Tuesday's stock market plunge?

quote:

What's Behind the Stock Market Plunge By Paul J. Lim Posted 2/28/07 Q: What caused Tuesday's stock market plunge? A: Many investors are blaming yesterday's sell-off on China's market meltdown. On Tuesday, the Shanghai stock index lost nearly 9 percent of its value, as the government hinted that it wanted to find ways to curtail the huge amount of speculation in its stock market. This explains why some are referring to yesterday's stock slide as the "China Syndrome" or "the Shanghai Surprise." Related News * Stock Market Sell-off: Tremor or Quake? * More from Money & Business But China was only one of many drivers that pushed stocks lower. After weeks of stabilizing, oil prices are again marching higher. Yesterday, crude oil prices climbed back above $61 a barrel. Meanwhile, the Commerce Department reported that new orders for durable goods fell a surprising 7.8 percent in January–signaling that the economy many not be as resilient as some think. This seemed to support fears that former Federal Reserve Chairman Alan Greenspan raised this week, when he hinted that the U.S. economy could still slip into recession sometime this year. Finally, adding to the selling was another round of geopolitical uncertainty, as reports emerged that Vice President Dick Cheney may have been the target of an unsuccessful suicide bombing attack this week during his trip to Afghanistan.

___________________

Last edited by Krypton on Mar-02-2007 at 03:00

Are we heading for another recession ? God damn, that's a worrying prospect.

___________________

Download and review ! Omega_M - In the Mix (Beta Version)

Originally posted by twilightki : It feels like something you'd listen to at 4 in the morning, or listen to in your car while you're going in a tunnel.

China smells, looks and acts a lot like the U.S. markets of the late 90's. Rampant speculation, record margin debt, markets have gone parablolic, yet China is nowhere near as transparent as other global markets. It's boring, low-risk and unsexy, but right now from a personal standpoint I'm extremely cautious and defensive which argues for treasuries, gold and solid consumer non-cyclicals with decent yields. Better safe than sorry for now. I have the luxury of time. Again, that's just me.

quote:

Originally posted by Omega_M Are we heading for another recession ? God damn, that's a worrying prospect.

It's a good question. Current thinking is that we're headed for a significant slowdown/soft-landing that will not result in a recession, though that call is becoming more tenuous by the day. The thinking is that if it's just a slowdown at hand, then it would actually be bullish for the stock market. However, if a recession is coming, all bets are off and you should clear the decks. We are currently positioned essentially net-neutral, though on a beta-adjusted basis we are certainly net-short.

There are experts going both ways. I'm on the side of slowed growth rather than a recession. The Fed should lower interest rates later this year, FINALLY, letting go off the brakes a little bit.

___________________

I punched out end of Jan, it was just getting a bit 'too good' and when things start getting too good it's time to start getting wary. China was interesting simply because it was just rampant speculation that there was going to be a bit of an inquiry into some sectors of business.
They didn't do it, but it was enough to have obviously frightened the living crap out of enough people who where perhaps not paying as much attention as they perhaps should have.
Big fuss over nothing... which turned into a big loss over nothing.

Likewise, wouldn't worry too much about recessions, China is a big economy but it's still only about 1/5th the size or so of the US's and the US is more than capable of looking after itself.
If you're looking for something long term, take advantage of the known businesses out there which have a depressed share price and hop on for the ride, preferably some of the finance institutions but they seem to be weathering it better than most.
Short term, really rather not go there...
Commodities, gold, oil and energy, all ripe for some rampant speculation because they're going out the door at the proverbial firesale prices.

I've been saying it before long ago and will say it again - considering the America's weakening dollar and world instability, sharp rising prices of fuel and electricity followed by sluggish economies, and such scares as the one in China in my opinion will result in some serious economic ice ages this century, in proper english - basically I think the world economy will crash, there's too much pressure on it ... dont forget the American currency problems, environmental issues, oil/gas issues, and possible conflicts coming up. Turmoil.

___________________
Whenever you go and buy something, you are affecting someone somewhere, be it environment, a person, or a community - you're making a statement with what you buy. So make it a smart choice ... Its a big picture

quote:

Originally posted by Magnetonium dont forget the American currency problems, environmental issues, oil/gas issues, and possible conflicts coming up. Turmoil.

Uh, it's been like that for as long as I can remember, turmoil is what makes it work.
Picking through it is the risk you take for making money, if you don't want in on it, no one's making you put money into stockmarkets and you can continue on doing whatever it is you do.

quote:

Originally posted by Magnetonium I've been saying it before long ago and will say it again - considering the America's weakening dollar and world instability, sharp rising prices of fuel and electricity followed by sluggish economies, and such scares as the one in China in my opinion will result in some serious economic ice ages this century, in proper english - basically I think the world economy will crash, there's too much pressure on it ... dont forget the American currency problems, environmental issues, oil/gas issues, and possible conflicts coming up. Turmoil.

typical fearfulness of someone who knows nothing, and therefore, is afraid of everything

___________________

quote:

Originally posted by Cyrus King i listen to trance becuase it is beautifully composed like a classical piece of music.... but with beats in it...

quote:

Originally posted by Magnetonium I hardly if ever acknowledge sarcasm from a person I dont know because I ran into serious problems on an undisclosed buying website before.

quote:

Originally posted by Dopey typical fearfulness of someone who knows nothing, and therefore, is afraid of everything

Selling and arguing doom and gloom is possibly the worlds oldest industry 2nd to prostitution and a close runner with killing one another for social activities.
The great thing about predicting something bad happening is that eventually, it will happen and then you can jump up and down looking oh so very clever with yourself saying "I told you so!".
The great difference between the average doomsayer and becoming the messiah is whoever gets it the closest to the actual date when the martians, thetans, angels... asteroids? come down and cart off the chosen to heaven, hell, nirvana... wherever.

You can either work in religion selling doom to the unenlightened and make yourself the prophet of millions if you get it right or just start trading shares and predict the doom there and make a profit of millions.

It's a good industry either way! Infinite growth and chance of doom with every passing second, statistically something is going to happen

quote:

Originally posted by Magnetonium I've been saying it before long ago and will say it again - considering the America's weakening dollar and world instability, sharp rising prices of fuel and electricity followed by sluggish economies, and such scares as the one in China in my opinion will result in some serious economic ice ages this century, in proper english - basically I think the world economy will crash, there's too much pressure on it ... dont forget the American currency problems, environmental issues, oil/gas issues, and possible conflicts coming up. Turmoil.

Concerns are well-founded, but yeah, you're probably a little more dour than necessary. Hell, I'm usually too negative but you're making me look like a raging bull!

quote:

Originally posted by Lilith prophet of millions...profit of millions

___________________

quote:

Originally posted by Cyrus King i listen to trance becuase it is beautifully composed like a classical piece of music.... but with beats in it...

quote:

Originally posted by Magnetonium I hardly if ever acknowledge sarcasm from a person I dont know because I ran into serious problems on an undisclosed buying website before.