How much further will stock markets fall?

Realmoney_2

What with this week's horrendous stock market showing so far, I'd love to have some good news to report.
But I'm afraid I don't.
It looks extremely ugly out there. And I think we've got further falls ahead…

http://www.moneyweek.com/investments/stock-markets/how-much-further-will-stock-markets-fall-14900


Dom Frizby at his best.

AliceJenkins

It's risen today...

dtsazza

Realmoney wrote: »

...I'd love to have some good news to report.
But I'm afraid I don't.

Falling stock markets are only bad news if you're a net seller.

I'd imagine that most MSE forumites won't be at a point in their life where they wish to reduce their net holdings (typically this would only be just before retirement, or moving abroad, or funding a new business, etc.)

In fact I'd go so far as to say that the vast majority that hold any equity will be net buyers, at any given time.

So on behalf of that group (of which I'm a member) - hooray, markets are having a sale! I can pick up more for the same capital outlay, and this blip won't have any impact on their value when I come to sell in 10-40 years!

Cleaver

AliceJenkins wrote: »

It's risen today...

This author is someone who just ramps gold, so each article he writes is just a backdrop in order to promote buying it. From this article:

My policy has been – and it's still the advice I am giving to anyone who asks – to sit on your pot of gold.

His chosen subject next week could be a critque of West Ham United's 2005-6 season campaign and the conclusion at the end would be that their 9th place finish and FA cup final appearance clearly points out that gold is underpriced and that you really should invest.

We now have to sit through Realmoney log on and off with his Flight2Quality and Enigma usernames where he agrees with himself.

lvader

TheEnigma wrote: »

If you think that was the bottom I have to disagree with you.

We have a long way to go down yet.

It's hard to say, there is a lot of pressure in the US to buy shares, people want out of government bonds which have been over bought and shares are the natural place for the money to go. European markets follow the US to a certain extent.

sabretoothtigger

The reason we do not have a long way to go down is that the worth of money is not going to rise alot.

FTSE is not a number by itself. Its a number and currency. FTSE / Sterling

So if we say the value of FTSE is going down, we can mean either the number or the currency. Since we know they are stupidly printing off money and inflation over takes cash returns, we can say currency is going down in value and will do for many years until QE unwinds and/or our trade balance corrects

To then say the FTSE has a long way to go down yet on top of the losses occurring anyway is unlikely when large amounts of FTSE business is not conducted in the UK or in our currency

lvader

TheEnigma wrote: »

If you think that was the bottom I have to disagree with you.

We have a long way to go down yet.

It looks like the markets didn't agree with you. I had a lovely 350 point gain on the DAX from this morning to early afternoon. Yum.

Generali

If I knew the answer to this I'd be playing Hide the Sausage with the Johanssen twins on my private beach rather than sitting on the bus.

purch

Don't play with those "Girls".

Last time I hid it, I didn't get it back for weeks and by then it had gone cold :eek:

sabretoothtigger

actress Scarlett and twin brother Hunter Johanssen

Each to their own :shocked:

thor

dtsazza wrote: »

hooray, markets are having a sale! I can pick up more for the same capital outlay, and this blip won't have any impact on their value when I come to sell in 10-40 years!

Perhaps.....but who can say how long this 'blip' will last? It could be 3, 30 or 300 years, who knows?