Black Monday v 3.0 Today

[Slava]

Cowperson, I for one salute your prediction of todays positive markets! I honestly would've taken the bet ahead of time on the other side of the fence!

[DementedReality]

Originally Posted by Slava

Cowperson, I for one salute your prediction of todays positive markets! I honestly would've taken the bet ahead of time on the other side of the fence!

sorry to interupt this interesting discussion ..

slava, i sent you a PM a week or so ago .. have a look and thanks!

[Slava]

^^ Hey DR, I seriously just sent you the response, and then opened this thread! Sorry for the delay!

[Johnny 99]

Originally Posted by RougeUnderoos

I just flipped on BBC news and the guy said "the Dow closed about 1% down today".

I really don't know what it means, but it doesn't sound all that bad.

The only reason the DOW wasn't pounded today was because the Federal Reserve cut the interest rate by an absolutely ridiculous amount. In February 2001, under similar circumstances, they debated for weeks whether or not to cut it by .25%, in an effort to keep the market afloat. .75% in one foul swoop would have been unthinkable just six short years ago. With interest rates that low, money becomes more and more worthless. In Japan in 1997 banks were offering interest free loans to encourage investment to stimulate the economy. Interest free loans are NOT a good thing in the long run.

[I-Hate-Hulse]

Apple down 18% at 8:30am. Huge whack at a company that could do no wrong.

[Cowboy89]

Originally Posted by I-Hate-Hulse

Apple down 18% at 8:30am. Huge whack at a company that could do no wrong.

Looks like there's no credit card debt or home equity available for the average American to use towards making payments on iPhones.

[Qwerty]

Originally Posted by I-Hate-Hulse

Apple down 18% at 8:30am. Huge whack at a company that could do no wrong.

Google is down almost 5%. Apple is only down 12% or so now.

[MaDMaN_26]

I bougth BCE stock on Monday... steal of a deal considering the privatization is going to happen.

(ofcourse I wish I'd bought on Tuesday instead, but what ever)

[I-Hate-Hulse]

Originally Posted by MaDMaN_26

I bougth BCE stock on Monday... steal of a deal considering the privatization is going to happen.

(ofcourse I wish I'd bought on Tuesday instead, but what ever)

Uhh - speaking from someone who's been through such deals, you do know that the BCE privatization has some questions marks around it? The Street is extremely unreceptive to debt right now, and it remains to be seen if the bid group can raise enough of it for the deal to go through. Not saying it won't go through, but don't count on it as sure thing.

[Finner]

Originally Posted by I-Hate-Hulse

Uhh - speaking from someone who's been through such deals, you do know that the BCE privatization has some questions marks around it? The Street is extremely unreceptive to debt right now, and it remains to be seen if the bid group can raise enough of it for the deal to go through. Not saying it won't go through, but don't count on it as sure thing.

I have been hearing of some rumblings of this to. I've heard the back out clause is huge though, somewhere in the area of 800 million. Even if they do back out, you could always see telus step in and probably buy only a few dollars off from the price the teachers were offering. In the meantime you are making a pretty nice dividend.

TSX down over 400 points now. I knew i should have bought some options yesterday! Or at the very least sold short.

[Top Shelf]

Originally Posted by Finner

TSX down over 400 points now. I knew i should have bought some options yesterday! Or at the very least sold short.

That should almost put as back to Mondays losses.

DOW is also down 250 points so far

[Canada 02]

so many business cliches apply to yesterday; dead cat bounce; avoid catching a falling knife; pigs are getting slaughtered

[Slava]

^Suckers rally.

[MoneyGuy]

Thought you folks might like this one give recent market performance:

Some tips for retirement planning from an expert in the industry:
If you purchased $1000.00 of Nortel stock three years ago, it would now be worth $49

With Enron, you would have had $16.50 left of the original $1000

WorldCom, you would have less than $5 left.

But if over the last three years you had purchased $1000 woth of beer, drank all the beer, then returned the cans or bottles for your refund you would have $614.

So based on the above, the best current investment advice is to drink heavily and recycle.

However, don't accept this as a recommendation to sell your stocks and put your money into beer bottles.

[Regorium]

Another rally atm in the US markets. Is this for real?

So much volatility. I want to average down on some of my investments but I have to admit I am a bit scared.

[Canada 02]

^ i think your numbers are a bit off.

For each dollar you spend on beer, you get a 61 cent deposit for the bottle or can?

[MaDMaN_26]

Originally Posted by I-Hate-Hulse

Uhh - speaking from someone who's been through such deals, you do know that the BCE privatization has some questions marks around it? The Street is extremely unreceptive to debt right now, and it remains to be seen if the bid group can raise enough of it for the deal to go through. Not saying it won't go through, but don't count on it as sure thing.

I know nothing is forsure, and as a BCE employee I do not think I have any additional info... all I know is evertything we are doing as a company seems to be in preperation for this and the executive attidue here is ofcourse its going through...

My other thought was that BCE is still a decent stock... even if the deal fails the stock will still exist and while expecting it to trade at $34-35 dollars if the deal fails is probably unrealistic I won't lose everything... in the stock market we have been seeing these days I figure its a pretty good bet in the whole loss vs potential gain category.

[MoneyGuy]

Originally Posted by Canada 02

^ i think your numbers are a bit off.

For each dollar you spend on beer, you get a 61 cent deposit for the bottle or can?

Ha, never checked the numbers. I just clipped and pasted it.

Originally Posted by Regorium

Another rally atm in the US markets. Is this for real?

So much volatility. I want to average down on some of my investments but I have to admit I am a bit scared.

How old are you? Are you in your 20s or 30s? Even if you're in your 40s, who cares? Really.

Let me get this straight. Let's say you had bought a stock at $40 because you felt it was a good investment. It suddenly shoots up to $50 and you're buoyant so you buy more. However, imagine it went from $40 to $30. It's dropped 25%. You're despondent and don't buy more and wonder if you should sell. It's the same frigging company. At $30 you get way more shares and way better value than you would at $50 but you won't buy at $30. Is that what you're saying.

Another example: You buy shares of a great company at $10. You bought it because you felt it was good value - maybe you feel it's worth $15. This is called a value and there are lots of them out there - more today than a year ago, BTW. Now it falls to $6 so you buy one more share to add to the one $10 share. Following me so far?

Okay. Your average price is now $8. The share price is now $6, right. If you just had the one $10 share it must go up by 67% just to get to break-even. At an average cost of $8 it only has to go up by 25% to break even. If it goes back to $10, which it should over time if you've assessed the company well, in the first scenario you've only broken even. In the second you've already made a 25% profit.

I'm amazed that young guys like you don't get this. Go away from your computer right now and buy more of whatever you have that's still good despite the market. Ignore volatility. Money invested today will get a better return than money put into the same investment a year ago. This is a buying opportunity. Pick up some cheap investments that will be worth way more in years.

Don't make me come over there and slap you.

I'm not trying to pick on you, bud. You're typical. But think about this explanation. I hope you find value in the advice.

[MoneyGuy]

BTW, the insiders are buying.

http://www.theglobeandmail.com/servl...Story/Business

[DementedReality]

Originally Posted by MoneyGuy

..... Money invested today will get a better return than money put into the same investment a year ago. This is a buying opportunity. Pick up some cheap investments that will be worth way more in years.

.... I hope you find value in the advice.

awesome ...now give me some idea how to identify those value buys and I am in.