DOW down over 1000 points!

[mnhtnbb]

I think I'll go back to decorating the house for ⛄🎄

[Sherman A1]

1. Glad we have a bunch of leftovers

From yesterday, this isn’t going to look good in the 401k at day’s end.

[Shermann]

24. They are 391K plans now

[Demovictory9]

28. lol

[Tomconroy]

2. This is what's known as a buying opportunity.

[A HERETIC I AM]

5. ....

[MissB]

15. Indeed

Be in it for the long haul or not at all.

[we can do it]

27. Yep

[Shermann]

36. Or perhaps a falling knife catching opportunity

[dweller]

3. Well, it is after all

https://m.

✌🏻

[Scrivener7]

4. Being attributed to Nu variant. That's scary. What do they know about it that we don't?

[dawg]

6. They *don't* know ...

and that's what spooks them more than anything.

[Amishman]

7. We're long overdue for a correction, current P/E and P/B values are way above historical averages

In other words, stocks overall are trading at too high a price relative to their earnings and total assets.

Current Shiller P/E ratio is 38.8 and is based on the S&P 500. Historical mean is 16.8, median 15.8

All time high was Dec 1999 at 44.1 - right before the dot com bust. Prior to that, the only time it was ever at 30 or more was October 1929 - right before the Black Tuesday crash.

I see two possible ways this extreme overvaluation works itself out. Either A) we get a crash. B) sustained inflation, prices rising rapidly drives up earnings and reducing the ratio.

[True Dough]

20. Sound analysis

I agree with your assessment. The markets have been "frothy" for a long time. Cycles are inevitable.

[oioioi]

22. Yes, sharp correction coming.

Thanks for pointing this out. Equity and real estate prices don't have room to go higher. Fiscal liquidity flood and unsustainable interest rates are now pressuring wages and consumer prices. Supply chain weakness and full employment are aberrant. Depressed sectors like travel, entertainment, tourism, etc. seem to be offset by present economic restructuring and fiscal stimulus - we can dream, but this transition won't last forever.

With another year of COVID curtailing economic activity, rising inflation, accelerating climate change indicators amid stirring geopolitical uneasiness, it's difficult to find a solid argument for an exuberant equities outlook. The scenario of rapid prices pushing up earnings in dollar terms won't fix bloated P/E ratios - equity prices can't outpace an extended period of inflation with consequent wage and social pressure. Hello UBI?

[ProfessorGAC]

39. Completely Agree

We've got 2 giant companies with revenues a third of market cap. Revenues, not earnings. One of them showed pretax earnings of 2% of market cap. This is irrational.
By contrast, Walmart has a market cap of around 60% of revenues. This made their earnings nearly 40% of market cap.
I know 2 companies don't exert that much leverage on the whole market index, but they're the extreme examples, not the only examples of irrational valuation.

[CanonRay]

8. Shit, I just re-invested 80k from a sale of land

I mean like Wednesday. Great timing as usual...

[Scrivener7]

9. It always goes that way, doesn't it? But you'll recoup. I invested in

Chipotle just before the norovirus nonsense. But in the end the Chipotle stock profits paid for most of my new car.

[jmbar2]

10. It'll recover once the news gets digested.

[beaglelover]

12. Buying when prices are low is very good.

[beaglelover]

11. The market goes up and down. It's how it works. Not a huge deal unless you're withdrawing all of

your money in the market today.

[Wounded Bear]

13. Meh, that's what? 3%?

Probably some profit taking for xmas shopping cash.

[durablend]

14. Serious correction in oil and gasoline as well

Of course TPTB will make sure we never see it and blame Biden for it.

[uponit7771]

23. +1

[Beakybird]

16. I invested in TV dinners, and all my assets are frozen.

[mahatmakanejeeves]

19. I see what you did there. NT

[Shermann]

25. I invested in beer and all my assets are liquid nt

[Beakybird]

26. hahaha!!

[gulliver]

17. Buying opportunity

[bucolic_frolic]

18. In my view, the next few days will have considerable turbulence

The initial Virus mutation news will fade, but it has confirmed the deflationary theme that has been floating around for about two months. Commodities are falling, speculation bubble pricked, bitcoin too, and underneath it all the level of debt.

[Ron Green]

21. Are we struggling mightily to "get back to normal"

when we ought to do the exact opposite?

Why continue to consume at a previous level?

Why accumulate money that’s not tied to actual goods?

Why use debt to expand life experiences?

Why support any economic growth?

COVID-19 and its pandemic, and now its variants, along with the climate crisis, are serving as lessons to the world; sadly they’re mostly being ignored.

[onenote]

30. Why create jobs

Sarcasm

[Ron Green]

32. Indeed, why "create" jobs?

No sarcasm.

We need to learn to live small on this earth, and we need to do it right now.

[onenote]

35. So you support folks being unemployed?

Interesting.

[Ron Green]

38. I support people living their best lives in a loving community on a

healthy planet. If you’ve noticed, lots of jobs are going unfilled at the moment, as people reassess their priorities and wage slavery is called into question.

Maybe one result of the pandemic will be a new and better economics. And it ain’t the “financial markets” that will lead the way.

[GoCubsGo]

29. Good thing the Stock Market is not the economy.

It goes up. It goes down. It was at a record high just a couple days ago. I'm sure the media will spin this as a "disaster for Biden," while ignoring it completely when it goes up and breaks another record in a few days.

[IcyPeas]

31. great just when I'm near retirement I'm going to lose $$ in my 401k

[iemanja]

34. It could well bounce back

over the next few weeks. But yeah, I'm watching mine too.

[iemanja]

33. Watch the S&P

That's the broader indicator.

[Xavier Breath]

37. Good thing the wife and I put all of our money into mattress.

Mattress helps us sleep at night.

[ProfessorGAC]

40. Despite This...

...the Dow is up 15.5% & the S&P 24.2% year to date.

[Johonny]

41. yeah, 1000 points in Dow isn't what it used to be

It's not even a correction, people are acting like it's a bear market in this thread.