posted 04-14-2000 02:32 PM         

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nohype, i'm waiting for the dust to settle.

Here's an interesting quote from yesterday.
"Now, eyes on Wall Street are fixed on one key number: 3649 - the intra-day low the Nasdaq index hit April 4. After losing 769.67 points this week, the Nasdaq is less than 28 points away.
'Friday is a very important day: If it breaks through the low, it will increase the fear and panic,' says Don Hays of money management firm Hays Advisory Group"
We've certainly fallen below that, and more.
I feel like i've been seeing that fear and panic in the dow and the nasdaq today.

posted 04-13-2000 12:50 PM         

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Sorry to be confusing. What I meant was, when I think of a "bear market" it is a long-term trend--something that develops over months and lasts for years. this "bear market" hit in two or three weeks. I'm pretty young, so I can't say I was following the market when the latest Bull Market started, but I don't think it was suddenly a "bull market" after two or three successful weeks. On the other hand, this Bear has been announced unbelievably quickly. I thought that people would have to look into the rearview mirror over a couple of months before announcing "we have entered a bear market."
I mean, I take it with a grain of salt, this discussion of a bear market, it is only a technical definition.

But, that is what I meant.
KG

posted 04-12-2000 06:36 PM         

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The Nasdaq plummeted over 280 points, its second largest point loss ever, as investors dumped technology stocks like Microsoft and Intel. The tech selling spree spilled over near the close to send the Dow lower, driven by its tech components: Hewlett-Packard, IBM, Intel and Microsoft. (source: CNNfn)
http://cnnfn.com/2000/04/12/markets/markets_newyork/

Dow Jones Industrials: 11125.13, down 161.95, 1.43%
Nasdaq Composite: 3769.61, down 286.29, 7.06%
S&P 500: 1467.17, down 33.42, 2.23%
30-year Treasury Bond: 5.841%, up 0.069

posted 04-12-2000 03:24 PM         

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> ... a Kiplinger's editor who ended up getting swept up by the tech-stock giddiness and using margins to take on some high fliers. Now he pays the price. The lesson? Even people who are experienced and know all about fundamental investing and dollar-cost averaging and all those things about investing "people need to learn" have been caught up in this frenzied time.

Another possible explanation is that magazine columnists aren't the experts they are perceived to be, and this guy is one of the few who is willing to admit his mistake.

posted 04-12-2000 02:37 PM         

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hecubus, I still don't believe that last Tuesday's mirroring drop in the Dow after starting off so well was a "sympathy fall." It's very likely that people, when the margins come calling, would rather sell their Dow stocks than many of their Nasdaq positions.

happyguy, What's bad for people trading on margin and unexperienced investors is not the same as what is bad for the economy or market as a whole. I realize psychology plays an important part in individual investing, but not institutional or fund investing. Plus, what is great about the current economy and many technology companies hasn't changed, despite severe falls, and in the long run, the market will continue to reflect this (unless the economy turns sour of course).

posted 04-12-2000 12:39 PM         

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I thought this was an interesting and entertaining article. It is by a Kiplinger's editor who ended up getting swept up by the tech-stock giddiness and using margins to take on some high fliers. Now he pays the price. The lesson? Even people who are experienced and know all about fundamental investing and dollar-cost averaging and all those things about investing "people need to learn" have been caught up in this frenzied time. More people may get hurt by a Nasdaq collapse than we think.

http://www.kiplinger.com/feature/index.html?investments/archives/2000/April/confess.htm

posted 04-12-2000 10:15 AM         

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Originally posted by Joey Joe Joe:
"You know, I don't think this reallocation thing is as negative as the media is making it out to be."
A lot of people have been losing a lot of money in the past days and weeks. As evidenced by the margin calls, not all of it was money they had to lose. Not only that, the people losing the money are often these new bandwagon jumpers who don't know what "investing" is, they are more like speculators. They are treating it a lot more like gambling. They've never seen a bear market, and probably won't know what to do when they do see one.

"Reestablishing a nice balance between the Dow and Nasdaq may be really good for the economy, as more and more people are managing their risk a little better now.
And maybe some of the newbies that jumped on the bandwagon without any understanding of investing or the companies they were throwing money at will decide enough is enough, adding a little more stability to the current volatile situation."
Yep, I couldn't agree more. People need to learn a little more in my opinion... that'll decrease the volatility in the markets.

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