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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Madharry who wrote (31929)	9/4/2008 9:42:04 PM
From: Grommit	Respond to of 78998

finally an honest clipping and the NYT story. Nobody ever knows why the stock market goes up or down every day. But that doesn't stop people from offering reasons. For instance, people used to say that if oil prices fell, stocks would rise. They said that if the government came to the rescue of troubled financial institutions, that would boost stocks. And they suggested that if the Fed cut interest rates more than expected, investors would buy stocks. But today, The New York Times decided not to even offer an explanation. It suggested that nobody knows. New York Times: The Dow Jones industrial average plummeted 344.65 points on Thursday on a confluence of poor news about the economy, although investors could not pin the drop on any overriding reason. None of the news came as a shock to Wall Street. So what pushed the Standard & Poor’s 500-stock index down 3 percent, its worst daily performance in three months? “Boy, it’s hard to say,” Douglas M. Peta, a market strategist at J.& W. Seligman, said after the market’s close. “All of us were scratching our heads. Why today?”

To: Madharry who wrote (31929)	9/5/2008 7:38:07 AM
From: Wallace Rivers	Respond to of 78998

thankfully i am not on margin IMHO margin calls are a part of the recipe that has been concocted to inflict pain on Mr. Market on a fairly regular basis. One hears talk of "forced liquidation" quite a bit, particularly as it relates to the commodities complex. The talk yesterday, as per Grommit's post, was that there was no particularly compelling reason why the market tumbled yesterday. I talked with a retail broker at one of the big firms yesterday, his explanation - a buyer's strike in a low volume market.