Evidence that if you bought every 10%+ downside correction over the past 50 years, you'd be fabulously wealthy. It's anyone's guess if that will persist for the next 50 in an economy as developed as the US, with so many short-term investors (who have access to the market on par with the pros - though at higher commish of course) and with IRA redemptions beginning to increase and not peaking for 20 or so years.
================== See what you mean Pabst,somebody did some heavy buying{DOW 30}, in 1933,34,36; however polar bears clearly won 1929,30,31. Good timing on the article Willbear, however it seems clear from the charts starting with 1988,1989 that those big banks & NYSE dont feel a need to try to stop bear market in stocks or stock index derivatives. Surely did not stop bear market in 2000,01,02 Strange but true except for a few years, & OCT crashes ; wouldnt you know it XOM & related sector seem to be protected by some biggies. Except for some downtrend years & OCT crashes.Laugh out loud/ feet on floor. Dont know if its part of PPT, but CME as a matter of public record has more downside limits {5%......20%} than upside limits, on thier index derivatives. Seems like a 3 year bear market,, or Oct crashes has been thier limits, then buying starts, in the past anyway.
The LTCM situation was well publicized shortly after the blow-up. Greenspan had the heads of the major BD meet in one of the boardrooms and they committed the necessary capital, IN CASE, the bond market went off kilter. Aren't you guys aware that there are "collars" that will be put in place if the Dow falls or RISES a certain per centage in a day?? Extreme volatility or "panic" selling is not good for anyone. SteveD
collars & limit moves are not the same as a ppt commiting large sums of capital to prevent a natural move......& don`t believe they should artificially prevent the ineveitable. heads of banks barely came to an agreement to bail out the market as Goldman raided the LTCM offices & they pirated their already beaten down positions to benifit themselves in typical Goldman style........as they exacerbated their already beaten down positions. "extreme voll or panic selling is not good for anyone" you`re kidding me right?????????? tell that to soros on the ruble,jesse in 1912,etc. steve.b
why is this a bad thing - so they inject liquidity to ensure a soft-landing. this is a free-market economny and this is how shit works. it doesn't matter where the money comes from or who buys what, it just matters that the machine keeps going forward with a long-term upward bias.
the illusion of upward markets.. haha.. i'd love to see the day when this "plunge protection" fails. It'll be quite "volatile"
what illusion? the markets start at 0 and move up from there, long-term[200yrs], the markets will rise. period.