Interesting day on the markets?

abinanthanb

Graham_Devon wrote: »

From an extrem amatuer viewpoint, it looks to me (and I have no idea whats going on!!) that the markets all get excited about a recovery, then when these recoveries come, everyone gets gloomy again and everything that was being built up on "recovery" falls down when it happens.

That's because markets factor in all the forecasts about the recovery and when the actual recovery happens they dont have any more steam left in them. And it the days of electronic media and the ability of them to manipulate things even before they happen, I wont even be surprised to see the markets getting disappointed with a recovery that doesn't live upto the hype created by the media.

purch

A long way down??

Not necessarily.

But there is a long way to go before anyone can say with any certainty that this recession is behind us.

Despite what the 'official' definition may say, thinking that one quarter of miniscule growth means that a recession is over, is taking optimism to a whole new level.

Graham_Devon

purch wrote: »

Funny how 'certain' posters only find the market interesting when it's dropping :rolleyes:

I think this is a little unfair.

It dropped on Friday, but I didnt post about it, and has dropped a lot of times.

It's the dramatic drops which have raised my interest. A bit different to "just because it's dropped". A bit like one little flood in a village means not much to me or the news, but the flooding of a whole county makes national news. Would be silly to say "funny how they are only interested now and werent interested when it was dry".

Thing may have gone up 10% in a month. But thats not as dramatic as falling 2% in a single day.

And to be fair, I did post some questions not too long back about the big rises and why it was rising, which was kindly answered as the reason being losses in companies wee not as bad as expected.

tomterm8

I don't think there has been a single secular bear market in history where there wasn't at least one 50% rally. We'll see what happens, but at the moment I think what's happening is psychological... i.e. the market is remembering what happened last september and the september before that.

Really2

Graham_Devon wrote: »

Thing may have gone up 10% in a month. But thats not as dramatic as falling 2% in a single day.

It surprises me your view on a market in one day not a month. (as a view on what is happening)

plus there has been up nearly 2% days have there not?

Graham_Devon

Really2 wrote: »

It surprises me your view on a market in one day not a month. (as a view on what is happening)

plus there has been up nearly 2% days have there not?

Dunno why it surprises you, it's just a dramatic drop.

Hopefully we can draw a line under this now? Maybe get on with disucssing the reasons.

Jennifer_Jane

Well, I knew it was going to happen.

I bought £500 worth of unit trusts on Friday. It was obviously going to retreat after that.

Yes, I know that £500 isn't very much, not exactly my life savings, but nevertheless....

Would anyone like me to let them know when I'm next planning to put in another £500?

Jen
x

Really2

Graham_Devon wrote: »

Dunno why it surprises you, it's just a dramatic drop.

Hopefully we can draw a line under this now? Maybe get on with disucssing the reasons.

They have gone up a lot recently, growth not as good as "costed in", profit taking, Japan emerging before the US.

Could be any reason but if they dip, anyone looking to cash in for the last month would have cashed out today.

Most probably bounce back again tomorrow and back down again on friday.

It surprises me as the bears seem to always say it is the "trend".

The trend on shares is up at the moment and the one day hardly dents the "trend".

Do you treat every house prices going up one month as highly significant or "Dramatic" (it seems a bit secular to suit your stance)

Harry_Powell

Jennifer_Jane wrote: »

Well, I knew it was going to happen.

I bought £500 worth of unit trusts on Friday. It was obviously going to retreat after that.

Yes, I know that £500 isn't very much, not exactly my life savings, but nevertheless....

Would anyone like me to let them know when I'm next planning to put in another £500?

Jen
x

LOL, thanks for your post, it made me realise I'm not alone with my bad luck. I have finally set up a pension and my first payment went in today and so I seem to have bought at the top of the market. Oh well, you win some, you lose some, though it would have been nice to have at least 'won' on my first ever pension payment.

bendix

Good grief, there's a lot of bother about nothing. Even the most bullish of bull markets has days when 2% drops happen. It's nothing to worry about - it's profit taking and a chance to buy shares cheaper than they were last week.

Even this drop doesnt seem particularly convincing. They fell sharply upon opening and have recovered slightly and seem to be content to bounce around above the 4600 figure. The market is simply testing it's new-found floor of around 4600, and so far it's proving resilient, even after the Dow fell 1.8% upon opening.

I've thought for weeks that the rally would peter out eventually, but would rest at a new higher level, and just drift in a 200 point range between 4600-4800, get through the autumn and possibly push on from there.

Nothing to see here, folks.