Global Downturn today - what are your thoughts?

[dazraf69]

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Lots of negative stuff, but I wanna hear about if this is
Possibly a good time to buy? Now or soon?

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This is possibly a good time, or a possibly bad time

[Mempho]

Earnings just don't support the current prices. This could be the ultimate correction but, by my count, it is too early. Probably going to see about a 5% correction prior to the end of the week but the money supply will probably prop up the market for now. The only danger will be if the older generation goes protectionist in the wake of more than expected downside pressure (like greater than 10%), then we could see a major "correction" that would push PEs down below 20.

The guys here who understand swing trading can make money, but getting into the market and buying stocks in the PE 25+ range is ridiculous unless you have some understanding of why such a valuation would be supported (such as high net assets, new intellectual property, or some other evidence that would support much higher future earnings).

[Strickly Bidness]

holy [censored] i lost serious cash today

[crunny]

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Regression to the mean is inevitable.

However, I wouldn't bother trying to time the markets. Its not a successful strategy.

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What, precisely do you mean by "timing the markets"?


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I mean that know one can accurately predict whether the market is going to move up, down or remain stable tomorrow.

[Cubswin]

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Earnings just don't support the current prices.

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I thought I heard that the average PE today is something like 14 and that this is not troubling by historical standards. I have not seen historical data about PEs but would be interested in seeing this data but dont know where to look for it. Anyone know a source?

[latefordinner]

google is your friend. though you'll find conflicting reports depending on how its calculated. Most put it at 25-30 though.

"Current PE ratios are still higher than in every single year prior to 1996, when the bull market blow-off began, with one exception: 1929 - the peak of the 1920s bull market before the Great Crash"

[latefordinner]

China appears to be rallying pretty hard, though the rest of Asia is still reeling a bit. Tomorrow should be interesting.

[iversonian]

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holy [censored] i lost a lot of money on paper today

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FYP

[john kane]

this gives me hope, from bbc website:

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However, analysts said a rebound on the Chinese market on Wednesday pointed to any declines being short-lived.

China's Shanghai index climbed 3% on Wednesday, rebounding after it slumped nearly 9% on Tuesday.

Economists at Lehman Brothers said Tuesday's decline, which was the biggest drop in a decade, was a market event and not a sign of deeper problems with China's economy.

They added that they would maintain their 9.6% forecast economic growth for China in 2007.

Other analysts agreed.

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i wouldnt like to be a trader going into work today. a lot of stress on the cards.

[latefordinner]

hope is for sports, not the stock market. have an idea and stick to it or else you're going to be getting in too late and getting out too soon.