Is the stock market about to take a sharp downturn?

[oberliner]

It has been faltering lately over the past few weeks with all of the "instability" going on in the Middle East and the oil prices climbing up.

Do you think the earthquake in Japan and its aftermath will be the final straw that will push the market downwards?

[Rex]

1. Ask a Repuke, they seem to have the whole thing rigged.

[oberliner]

4. Don't know about that

Things look a tad worrying though.

Of course, nothing compared to what the folks in Japan are dealing with.

[no_hypocrisy]

2. When you run away from something, generally you run toward something else.

Where could the money be invested that offers a decent return and is relatively "safe" from devaluation?

I don't see a flood of investment in commodities, but you never know.

[oberliner]

3. That is a good point

Oil futures maybe?

[AlabamaLibrul]

9. I would really highly recommend you not play with futures unless....

You know what the hell you're doing. And you know if you do or not.

I think safety will take hold over return for the time being, with inflows into Treasuries, gold a close second. Oil is a total stay-away if you've missed the last $20 in it, in my opinion. Not much further for it to run before it seriously cripples the economy, and too far to fall quickly if the pressure lowers a bit in the ME.

[JVS]

11. Out of Japanese stocks, into American stocks.

[Junkdrawer]

5. If anyone has been investing heavily in stocks, now would be a good time...

to make an orderly move to the exits...

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=439x631915

[oberliner]

6. I fear you may be right

I think US investors' timing could not have been worse.

[malaise]

7. K & R for the discussion

I'm ignornant on the subject

[oberliner]

8. Asian Stocks Slump on Japan Earthquake, Nuclear Concerns; Nikkei Tumbles

Asian stocks fell, sending a regional benchmark stock index toward its steepest drop since June, as Japan worked to contain its worst nuclear accident in at least 33 years following the nation’s biggest earthquake.

Mitsubishi UFJ Financial Group Inc., Japan’s biggest publicly traded bank, slid 5.1 percent in Tokyo amid media reports the death toll from the earthquake and ensuing tsunami may top 10,000. Canon Inc. sank 7.9 percent. Australian uranium producers tumbled in Sydney as Japan worked to prevent a meltdown at damaged nuclear reactors. Caltex Australia Ltd., the nation’s biggest oil refiner, rose 2.6 percent on expectations of increased Japanese demand for refined fuel.

The MSCI Asia Pacific Index fell 2 percent to 132.27 as of 9:48 a.m. in Tokyo. Japan’s Nikkei 225 (NKY) Stock Average led declines, even as many shares remained unopened for trading because sell orders overwhelmed the Tokyo Stock Exchange.

http://www.bloomberg.com/news/2011-03-14/asian-stocks-slump-on-japan-earthquake-nuclear-concerns-nikkei-tumbles.html

[Curmudgeoness]

10. Again?

There is no doubt that this will cause turmoil in the markets, but the bigger question is how long it will last.

[Lady President]

12. I think so

Mind you, I'm just an armchair economist, esp. considering I don't have any money to invest. I think the U.S. is overdue for a correction and this seems like an appropriate time. Stocks are inflated, despite there being no real recovery. Stock values going up should not be deemed a recovery, but the market is myopic. Stocks rose on the good news that other stocks rose. Now, we have the crisis in Libya and the earthquake in Japan which will make oil unstable and tech stocks drop. This should be enough of a catalyst for the market to correct / take a downturn.

Of course, it's the market and I could be completely wrong.

[sarcasmo]

13. It will drop for sure this week, just my prediction.

[cbdo2007]

14. I hope so. That will be a great opportunity to buy again.

[oberliner]

15. Pre-market numbers look pretty bad

Down 1-2 percent across the board.

[cbdo2007]

16. turns out both stocks I was wanting to buy are both up for the day - so much for that plan.

One of course was CAT.

[Cali_Democrat]

17. There will be no sharp downturn while the Fed is printing loads of cash

See the comeback in the market today? Up quite a bit from its lows. Funds are flush with cash after they've sold their bonds to the Fed, receiving the printed money in return.

Bubble Ben Bernanke will like go for QE3, QE4 etc. We're approaching the point of QE ad infinitum.