Asia stock markets getting ravaged to open Monday

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At this point it seems panic selling has settled in. It doesn't matter if the fundamentals of the US economy is sound. Investors are bailing.
 
At this point it seems panic selling has settled in. It doesn't matter if the fundamentals of the US economy is sound. Investors are bailing.

US stocks companies can be sound, but still overpriced. I will consider it panic selling only when it goes below the historical average p/e
 
As an investor I would only worry if the future profitability of the companies you own will be hurt. Lower oil prices will hurt oil profit but help airlines for example.
 

Apple earmarked some hundred plus billion for stock buybacks. Now it is looking like they bought back stocks when they are the most expensive. If this continues, I bet the board of directors are kicking themselves over not paying them out in dividends instead.

Apple makes great products, but they are terrible capital allocators. Previously, they were holding these hundreds of billions in cash. Doing nothing.
 
Apple to me would be an example of being overpriced which doesn't counter his point.

I was reinstating his point
it looks like apple may lose as much as 25%

I was expecting a correction to occur in September
so its earlier than I thought and might be a lot worse than a correction
 
How do you know when it has reached the lowest point

You don't have to catch it at it's lowest point. You want to catch it after it's stopped dropping. The point where it has established a clear upward trend.

A day or two of rises is not a good indicator at this point because there are bound to be some buying based on the technicals alone or buying just because there's enough sentiment to buy at that moment. But that can be erased by the next bad news cause the market is in selling mode.

When there is enough of that established buying sentiment to wither that bad news day is probably a more opportune time IMO.
 
At this point it seems panic selling has settled in. It doesn't matter if the fundamentals of the US economy is sound. Investors are bailing.

Dan Davies said:
what is happening today is called "a liquidation". Chinese policy has caused a large scale sale of securities portfolios for cash. So ...you don't buy anything until you know that the liquidation is close to having been completed. In fact you might even sell to raise cash. There is nearly always some sort of public piece of news that will tell you that the liquidation is ending. So watch headlines, not prices


I just block quoted three tweets from Dan Davies, a researcher at Frontline Analysts, who I think if very sharp. Basically a lot of longs have been crushed by the fall in China and are now having to raise cash by selling anything they can get a good price on. There probably is some panic from small time investors but the major action is being driven by the rush to raise cash.
 
It's kinda amazing how "the fall of China" is having the Chinese economy not expanding at breakneck pace. I mean, we all knew China's growth was going to slow down and mellow out eventually, right?
 
It's kinda amazing how "the fall of China" is having the Chinese economy not expanding at breakneck pace. I mean, we all knew China's growth was going to slow down and mellow out eventually, right?
Have you seen the stock and housing markets in the last few years? Nothing could support that. China don't care.
 
China had a stock market bubble going on. World investors are getting scared because of that popping, as well as the Chinese manufacturing sector slowing down as well as extremely high levels of local government debt and consumer debt.

All that means is that stock markets around the world are taking a hit because CHina was the nation who was basically buying up all the commodities.

Thanks!
 
Given the recent price falls Apple is now paying a 2% dividend. Thats better than what you'll get at a bank and pretty attractive IMO.

I'm not arguing against that. Dividends are great. But, I'm sure you can find quite a few stocks paying similar or greater dividends with less volatility and at a cheaper price. You'd have more shares and a greater dividend yield.

But they won't be as sexy as Apple though.
 
I'm not too privy for stocks and markets, but isn't it true that since the last decline in 08 that most of the value the stock markets have are in less and less amount of people? Does this mean it isn't as bad if there is a crash?

I really hope anyone in their 50s that had just got there retirement back aren't screwed yet again....
 
I'm not arguing against that. Dividends are great. But, I'm sure you can find quite a few stocks paying similar or greater dividends with less volatility and at a cheaper price. You'd have more shares and a greater dividend yield.

But they won't be as sexy as Apple though.

Please name these shares.
 
I'm thinking now is a good time for me to plan my entrance into the market. I of course have our retirements in the market in several 401k and Roth accounts, but I've never actually invested any of our savings into the market for short term (2-5year) gains. I've been waiting the markets to tumble, now seems a good time to watch for the low valleys and try to pick some up.
 
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