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Arrived: Recession (pg. 2)
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| R!CH |
i have an idea! let's soften the landing by inflating the out of the dollar!
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| ninetyninej |
| quote: | Originally posted by R!CH
i have an idea! let's soften the landing by inflating the out of the dollar! :nervous: |
seriously, bernanke and the fed reserve are ing retarded. they need to let the housing, construction, stock market, etc, correction continue so that it can finally finish, get all the bad out, all the write downs, and we can see a bottom and began to stabilize and ultimately grow.
but instead he overreacts and cuts rates and drives the dollar into the ground. :rolleyes: |
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| groovedaddy21 |
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| diskodave |
The FED cut interest rates by .75 and yet the market BARELY rebounded. I noticed just a bit ago that the DOW formed a ‘head & shoulders’ pattern which is extremely bearish. After it broke the neckline it took a major dive and I don’t see any support until 11,000-11,300. It will be interesting if we get a bounce or if stocks keep heading south from that point.
The best industry you can invest in through these times is Agricultural stocks. I believe industry will outperform almost any other in 2008. Also, I would invest in global markets with high growth. Such as China was a great place to invest in 2007 with around a 10% growth rate, when the average around the world is ~2%. India is an amazing economy to look into for 2008 too. If you are confident that the market will continue to crash for a good portion of the year, then I would start looking for bubble stocks to short. If not, load up on bear market ETFs to make a killing… but only buy those after the market bounces and begins to retreat again.
| quote: | Originally posted by Miss Julia
Wait, if i don't have any money in the stock market and stuff, am i safe? |
Technically no... the dollar has been deflating its value over the past several years. Just look at this two year chart of the dollar vs. euro:
http://finance.yahoo.com/q/bc?s=USD...l=on&z=m&q=l&c=
By the FED cutting interest rates only decreases the value of the dollar even more, and it encourages inflation. |
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| djGT |
http://www.etrade.com/
For those that want to fight against inflation, etrade is offering 5.05% APR on their savings account. There are plenty of other venues out there, just make sure to choose one that is FDIC insured with a 5% APR or greater. |
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| djjoshuaallen |
| well that is why we should all vote in a democrat, because they are going to pull us out of the war and economic turmoil, just like they are promising:tongue2 |
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| R!CH |
| quote: | Originally posted by ninetyninej
seriously, bernanke and the fed reserve are ing retarded. they need to let the housing, construction, stock market, etc, correction continue so that it can finally finish, get all the bad out, all the write downs, and we can see a bottom and began to stabilize and ultimately grow.
but instead he overreacts and cuts rates and drives the dollar into the ground. :rolleyes: |
its reminiscent of the short-sighted ceo looking to prop up quarterly numbers at the expense of the firm's long-term profitability. an inflated dollar is more dangerous than a recession. recessions are natural economic cycles. they impact some sectors more than others. inflated currency makes banks and markets start reconsidering what currency they trade in and it impacts everyone but the ultra-wealthy. seems like the hallmark of the bush presidency is to inject politics into all of our supposedly non-partisan institutions. the cia, the courts, the fed... this is all politically motivated. the job of the fed is to control inflation, not soften recession. god i miss greenspan. |
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| R!CH |
| quote: | Originally posted by diskodave
The best industry you can invest in through these times is Agricultural stocks. I believe industry will outperform almost any other in 2008. Also, I would invest in global markets with high growth. Such as China was a great place to invest in 2007 with around a 10% growth rate, when the average around the world is ~2%. India is an amazing economy to look into for 2008 too. |
brazil too. my cousin's husband who's a commodities broker in south america is swimming in money right now. i mean he is disgusting rich. all from the work he does in brazil. |
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| ninetyninej |
| quote: | Originally posted by R!CH
its reminiscent of the short-sighted ceo looking to prop up quarterly numbers at the expense of the firm's long-term profitability. an inflated dollar is more dangerous than a recession. recessions are natural economic cycles. they impact some sectors more than others. inflated currency makes banks and markets start reconsidering what currency they trade in and it impacts everyone, but the ultra-wealthy. seems like the hallmark of the bush presidency is to inject politics into all of our supposedly non-partisan institutions. the cia, the courts, the fed... this is all politically motivated. the job of the fed is to control inflation, not soften recession. god i miss greenspan. |
well said :)
God i wish i had a picture of the ny times that was titled 'AMERICA FOR SALE'
such a good article that cnbc reported on a week or so ago about the weakening dollar and the fact that liquidity has gotten so bad that merrill, citi, etc were going over seas to lure investors, like the saudi prince for example putting in billions to citi because US is desperate for capital reserves. hell if it wasn't for china, switzerland, middle east, u.k., japan, etc etc etc, the US would run out of money and go bankrupt!
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| ninetyninej |
| quote: | Originally posted by groovedaddy21
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| stefanoc |
just to be clear, recession is NOT even official yet. things arent looking good however.
for all the people who are hyping about foreign emerging markets, think again. these countries largely rely on the US economy no matter how 'emerging' they are. nikkei down about 10% in 2 days, DAX about 8%, HSI down 5%.. list goes on. emerging markets are much more volatile and i dont think its a good idea to be in volatile positions at this moment. foreign market is good for diversification's sake.
how many of you people are traders/daytraders? how many of you are in the financial business? and what are your predictions and what do you guys recommend at times like these?
i personally never traded in recessionary times but probably the best bet in times like these is probably recession proof stocks or even high yielding CDs or money market accounts. get a good rate from a bank and go to your nearest credit union and let them match the rate of the CD term (make sure the credit union is financially stable/well off by researching their financials). family dollar just came to mind when writing this and looking at todays chart shares were up 8%+ (FDO). no major news out today except of the news that was out last week that the company is RAISING their dividends.
according to an article at yahoo finance:
Assets in money market funds ballooned by $15.96 billion to a high of $3.17 trillion.
investors pulled an estimated $18.2 billion out of mutual funds.
feds aid to the economy is like a double edged sword. yea good job raising supply of money but what are you going to do with inflation after were out of recession. IMO, the best thing they could have done was wait as long as possible and try not to lower rates at LEAST til the end of the month. i wonder how low dow would have dropped if fed didnt drop the rate (probably 500-600 points max?) now theyre gonna drop the rate like crazy and once recession is over hike the rate so fast in order to beat inflation. sounds like history is repeating again. |
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| stefanoc |
| quote: | Originally posted by djGT
http://www.etrade.com/
For those that want to fight against inflation, etrade is offering 5.05% APR on their savings account. There are plenty of other venues out there, just make sure to choose one that is FDIC insured with a 5% APR or greater. |
i was just going to mention the risk of etrade but just realized theyre FDIC insured (i guess every public company is FDIC insured). does anyone know how FDIC really works? do they really give your money back right away or do they first try to liquidate a company and then try to pay off liabilities in that way? |
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