Dow, S&P Close Lower In Biggest Reversal Since Oct. 08
Source: CNBC
The Dow Jones industrial average and the S&P 500 closed about 1.3 percent lower after rallying nearly 3 percent earlier, their biggest reversal to the downside since Oct. 29, 2008. The S&P 500 remained in correction territory after falling there on Monday. The index also posted its first six-day losing streak since July 2012.
"That crash (Monday) was so big and so long since we had one (investors) don't want a repeat of 2008 so they bail out," said Lance Roberts, general partner at STA Wealth Management.
The Dow fell 205 points and S&P 500 closed below 1,900 after falling into negative territory in the last half hour of trade. The Nasdaq Composite failed to hold slight gains and closed 0.44 percent lower.
Read more: http://www.cnbc.com/2015/08/25/us-markets-attempt-recovery.html
Wellstone ruled
(34,661 posts)PassingFair
(22,434 posts)Wellstone ruled
(34,661 posts)Watch for the Fed to intervene by Friday. This prearranged market sell off is going to wreck our economy and the Fed is prepared to pump trillions into equities to quell the pending uprising coming from 401 k and IRA holders. Still appears this was prearranged to cover the Chinese Economic collapse.
Adrahil
(13,340 posts)That's a sign there is confidence that the market will get back to growth fairly quickly.
progree
(10,918 posts)A market correction is a drop of between 10 and 20%
A bear market is a drop of 20% or more.
Just a little scorecard on where we're at, so far
Turbineguy
(37,365 posts)from Citibank about interest rate hike had absolutely, positively, no doubt what so ever, nothing to do with that reversal.
$arca$m
progree
(10,918 posts)or in Google News search... can you please tell me what that was about?
Turbineguy
(37,365 posts)that the Fed would hike interest rates anyway in September. I saw it on Bloomberg. I think it spooked the (easily spooked) market since one of the Fed governors said earlier that there would probably be a delay.
herding cats
(19,567 posts)Citi is sticking with its call that the Federal Reserve will hike its policy rate next month.
The bank's economists, led by William Lee, interpreted the Federal Reserve's July minutes differently from other institutions, claiming that monetary policymakers' increased concerns about financial stability cemented the case for a hike in September.
Others institutions have recently pushed back their estimated dates for liftoff in light of international developments and volatility in financial markets emanating from China's decision to devalue the yuan.
Federal funds futures rates imply that the probability of a rate hike has slipped below 30 percent, down substantially from roughly 50 percent last week.
progree
(10,918 posts)And with this post, I now push my post-count to 2132, breaking above the S&P 500's closing all-time-high of 2131, in a brash and bullish move to the upside...
ieoeja
(9,748 posts)I did not lose a penny in 2008 because I moved everything into the "safe" fund before the collapse. Moved it back in some time after the sustained rise began. So I actually made out like a bandit.
This year they made two changes. First, the "safe" fund is now a "low risk" fund. So when I moved everything a few months back, I lost money anyway. In fact, during the year long up-and-down, net to zero, time frame, the "low risk" fund actually lost more than the high risk funds. Noting that, I finally moved it back to the high risk.
When this collapse began, I was going to transfer it back to the "low risk". But this is where the second reason to hate these asswipes comes into play. They changed the rules so that I am not allowed to transfer it into the "low risk" fund within 3 months of transferring it out.
They screwed me. Again. In 2000, I moved all my money out of high risk into the "safe" fund and ended up losing 50% of my 401(k) anyway. They didn't screw me in 2008, but they gave me a good, royal bending over this year and that year.
And there is nothing whatsoever I could have done about it short of taking 50% of it as a loan to at least keep that half safe.
uncle ray
(3,157 posts)"fool me once, shame on you. fool me, uh, you can't get fooled again."
Ruby the Liberal
(26,219 posts)I need to look into that tomorrow. I moved everything to the Money Market option on Saturday - trades confirmed at 9:02 on Monday. If there is a window, I missed it in the paperwork.
Thanks for the heads up.
progree
(10,918 posts)or specific to certain funds. (I've never heard of anything in 401k legislation or federal regulations like it).
Vanguard has a 60 day restriction on a lot of its funds -- once you sell shares from such a fund, you can't buy shares in it for 60 days -- to discourage frequent trading and the transaction costs that the fund incurs. This being true regardless of whether its held in a regular taxable account, an IRA, or a 401k.
Ruby the Liberal
(26,219 posts)In that I have had 6 different plans in the last 5 years (job change X2 and plan administration change x4) and haven't run into this yet.
There isn't anything in our plan documents that I can see, so I emailed downstairs to our FA group to confirm.
Things like this are good to know about.