Stock market drops 237 points

Kizzume · Posted: Wed Dec 05, 2007 2:59 pm Post subject: Stock market drops 237 points

If it happens again tomorrow, THEN we may have something to worry about.

jq · Joined: 02 Dec 2007 Posts: 1124

I wish I had money to throw in the stock market right now. Now would be the perfect time to buy. But as is, I have to decide how much longer I should hold on to my stock (which is below what I bought it at at this point Sad

) Because I need that money to pay for christmas presents. I have never had such a low amount of cash on hand, struggling to make my payments-- and I don't have a lot of time to wait aroudn and hope my stock bounces back up.....

chuq · Joined: 04 Dec 2007 Posts: 135 Location: Gulf South

You would think that the good news about Black Friday and the expectations of Cyber monday would have fuelled a rise. maybe the predictions are right, it is heading to a recession.

Kizzume · Posted: Wed Dec 05, 2007 3:01 pm Post subject:

We will know tomorrow.

redstaterebel · Joined: 05 Dec 2007 Posts: 128

Anywhere near the 11k mark on the Dow would be the time to load the boat.

jq · Joined: 02 Dec 2007 Posts: 1124

redstaterebel · Joined: 05 Dec 2007 Posts: 128

JQ -

Thats a tough one. But you did get most of yesterday's loss back today

Down 237 yesterday, Up 215 today. This is really a wild ride.

I spent 8 years with PaineWebber - now UBS. The company line would be to recommend that
you sell on an up day- based soley on your needing the money in the near future. With a 3 week timeframe - everyday is a gamble - not an investment.

Also - year end tax selling is common next month. People sell what they are down on to take the tax loss - generally December is not the best month because of this.

Don't let this cost you Christmas

Do you own stock or a mutual fund?

jq · Joined: 02 Dec 2007 Posts: 1124

I have bought into various stocks in the past, never a mutual fund. Right now I am embarrassed to say what I am invest in :-/, but it is just one stock, and a company that has had a lot of success in the past. I invested in Domino's Pizza, not because of any particular interest I have in their business, but because they were REALLY cheap compared to their average, and it was a stock pick by a lot of analysts who insisted the price is a steal. Well, that may be, but it is below what I bought it at, so......so far, not really a steal.......It is lower now than it has been in 3 years. I expected a quick bounce back (and then I was going to sell it), as I have had success doing this with CFC, and with microsoft-- but so far, dominos hasn't bounced upward like the others occasionally have....still waiting.......don't know what to do.....

redstaterebel · Joined: 05 Dec 2007 Posts: 128

No need to be embarrassed. I think Dominos is cheap too and in general I would think its a good call. That stock was in the 30's this summer.
Your only problem is that you don't have enough time. You can sell it - take the tax loss (Uncle Sam will eat some of your loss) enjoy the holidays - start getting back in after 30 days to avoid a wash sale violation.

jq · Joined: 02 Dec 2007 Posts: 1124

Well, some good news. It went up 3.45% today. So if that trend continues another day or two, I can sell and not lose money Smile

Kizzume · Posted: Wed Dec 05, 2007 3:05 pm Post subject:

I am so relieved at this. It will just take 2 or 3 days in a row of the drop to cause a huge panic that will hurt us very badly. I'm so so so relieved it's not that time yet. :relieved sigh:

jq · Joined: 02 Dec 2007 Posts: 1124

debateman · Joined: 05 Dec 2007 Posts: 349 Location: New Mexico

Never fear, the market will correct itself yet again. What happens is you get a few people with their panties in a wad talking down the economy, people panic until they realize there was no need for their panic. If you have something in the market, don't get out now... get in now. You buy low and sell high, not buy high and sell low...

We are entering the major revenue season (thank you Christmas) and will see a dramatic improvement in earnings I would bet.

Kizzume · Posted: Wed Dec 05, 2007 3:06 pm Post subject:

I sure hope so.

redstaterebel · Joined: 05 Dec 2007 Posts: 128

What a wild ride this is. 13,300 on the dow again.

Go Dominos! I'm pulling for ya.