Nikkei's down most since '87 crash. http://www.bloomberg.com/apps/news?pid=20601087&sid=aT4Eb5Cdztf0&refer=home
According to our resident Doves, 0% rates and a few (maybe 10??) Trillion more should solve this! They'll buy the Market if they have too! (or shut it down for a few weeks!) Look at this. What a mess. Endless money is not good. Look at Japan. For the Love of God. Pull up a 20 year chart of the Nikkei. up 40K in 1990. Then dumped 30K for the next 18 Years. And they're still bleeding. What are they at now? 8000?!?!? Does that sound like Free Money FIXED Japans MARKET?!? Did that endless credit save Japans 401Ker's?! Did their experiment in Government ownership prove MASSIVE BAILOUTS helps economies?!
There's just no capitulation in sight. None. Every single day, I (we) are barraged by endless pundits talking about how cheap stocks are here, and how it's the investment opportunity of a lifetime to start deploying cash. Threads here and elsewhere attempt to call bottoms every day. I'll venture a hazardous guess and say we'll at least be closer to a bottom when these incidences are far less frequent.
All that counts is your personal view of what value the stocks present at this levels. One needs to be ahead of the crowd in order to buy low and sell high, doesn't he?
I know several people who have lost millions, been margined called, and gone bust in the last week. I have heard of two who have committed suicide as a result of this crisis. Even SAC and Citadel are puking out of stocks, along with almost everyone with a 401k. The Dow had its worst week for a century. the VIX is at 70. At the lows, the S&P was off 47% in 1 year. That is worse than the 1973-74 bear market, worse than everything except the Great Depression bear - which took 3 years, not 1, and against a massive fall in the CPI. Are you sure there's no capitulation? One wonders what would have to happen for you to declare it such. The only people buying stocks right now are die-hard buy & holders like Buffett, and a few contrarian traders like myself. No one else has both the cash AND the balls to step up to the plate right now. Those who don't buy now will regret it.
Couldn't agree more. If this isn't capitulation with many professionals throwing in the towel and going to cash and millions of retail investors selling out their 401k's then I don't know how we can define capitulation.