Stock Market

[Troy Loney]

So, I'm guessing equities will sky rocket today with the announcement of a bailout plan...and then tank sometime in the near future when the plan doesnt work?

[JeffDFD]

So, I'm guessing equities will sky rocket today with the announcement of a bailout plan...and then tank sometime in the near future when the plan doesnt work?

At least we have had some sustained positive momentum recently...today's jump hopefully helps that...so if things do go south...we don't go ALL the way back down. Who knows. I was getting tired of the +300 Monday followed by the -400 Tuesday followed by the +200 Wed.

Anyone have any perspective on what this agreed upon plan is and the chances that it works?

[Troy Loney]

Banks are supposed to take a 50% write off on their Greek Bonds...other than that, i'm not sure.

[JeffDFD]

SP up near 3.4%. Dow Jones well over the 12000 mark today at 12,192...up 323 pts
Please don't go down 400 pts tomorrow

[newarenanow]

What are mortgage rates today?

[ExPatriatePen]

What are mortgage rates today?

Rates are up across the board.

[ExPatriatePen]

So, I'm guessing equities will sky rocket today with the announcement of a bailout plan...and then tank sometime in the near future when the plan doesnt work?

That's a real possibility... watch Italian bonds for an indication.

[newarenanow]

What are mortgage rates today?

Rates are up across the board.

Sweet. So my 4% lock was a good one!

[JeffDFD]

So, I'm guessing equities will sky rocket today with the announcement of a bailout plan...and then tank sometime in the near future when the plan doesnt work?

That's a real possibility... watch Italian bonds for an indication.

No you watch them...and then post here and I will sell everything first!!!!!!!!!!

[itissteeltime]

Sortof unrelated, but I've been watching USD vs EUR rates all day, we've seen a nearly 2.5% movement from when the meeting ended till now. If you have any Euros, sell them!

[ExPatriatePen]

So, I'm guessing equities will sky rocket today with the announcement of a bailout plan...and then tank sometime in the near future when the plan doesnt work?

That's a real possibility... watch Italian bonds for an indication.

No you watch them...and then post here and I will sell everything first!!!!!!!!!!

You know I charge for my services right? It could cost you a few Stella's

I love these hedge fund / money managers that charge "two and twenty" - what a racket!

Seriously... Italian bonds are the "Canary in the coal mine", they'll tell you if this European crisis has been arrested or is still a possible 'contagion' issue.

[ExPatriatePen]

Sortof unrelated, but I've been watching USD vs EUR rates all day, we've seen a nearly 2.5% movement from when the meeting ended till now. If you have any Euros, sell them!

Go short the Euro v. the Canadian Looney. But most folks don't make arcane currency trades like that.

[Tomas]

What are mortgage rates today?

Rates are up across the board.

Sweet. So my 4% lock was a good one!

I closed on my refinanced mortgage on Monday.

[ExPatriatePen]

What are mortgage rates today?

Rates are up across the board.

Sweet. So my 4% lock was a good one!

I closed on my refinanced mortgage on Monday.

I'm disappointed that we don't hear more from you in this thread Tomas.

Do you know who Michael Santoli is? He writes a column in Barrons. You should read this weeks column from him... the two of you are singing the same tune.

[JeffDFD]

More knowledgeable people should post in here more often for sure. I am generally new to investing and don't want to become too hardcore about it, but any suggested reading from those of you with more experience? Magazines, books, blogs, etc? Something easy to understand and practical to someone like me?

[JeffDFD]

The Dow industrials were up 317 points, or 2.7%, to 12186 in early-afternoon trading, moving above the 12000 level for the first time since early August. The Dow was up more than 1,200 points for October, or 11%, with two more sessions remaining in the month. If the gain holds, it would be the biggest monthly point advance ever for the blue-chip index and the largest monthly percentage rise since January 1987, when the Dow gained 13.82%.

http://online.wsj.com/article/SB1000142 ... wsj_gadgv1" onclick="window.open(this.href);return false;


Biggest monthly point advance since 1987? That calls for a little and a little ...even some too

[ExPatriatePen]

The Dow industrials were up 317 points, or 2.7%, to 12186 in early-afternoon trading, moving above the 12000 level for the first time since early August. The Dow was up more than 1,200 points for October, or 11%, with two more sessions remaining in the month. If the gain holds, it would be the biggest monthly point advance ever for the blue-chip index and the largest monthly percentage rise since January 1987, when the Dow gained 13.82%.

http://online.wsj.com/article/SB1000142 ... wsj_gadgv1" onclick="window.open(this.href);return false;


Biggest monthly point advance since 1987? That calls for a little and a little ...even some too

Look at the chart, it's all relative to where we started the month, right? It's been a good month but picking arbitrary time frames like that over short period of times like "one month" can be misleading.

[Troy Loney]

So...should i dump the equity portion of my 401K back into bonds?

[ExPatriatePen]

So...should i dump the equity portion of my 401K back into bonds?

DO NOT DO THIS! (was that loud enough for you)

Look, this advice is only worth what you've paid for it... but the next "Bubble" IMHO are long bonds...

Tomas?

[JeffDFD]

The Dow industrials were up 317 points, or 2.7%, to 12186 in early-afternoon trading, moving above the 12000 level for the first time since early August. The Dow was up more than 1,200 points for October, or 11%, with two more sessions remaining in the month. If the gain holds, it would be the biggest monthly point advance ever for the blue-chip index and the largest monthly percentage rise since January 1987, when the Dow gained 13.82%.

http://online.wsj.com/article/SB1000142 ... wsj_gadgv1" onclick="window.open(this.href);return false;


Biggest monthly point advance since 1987? That calls for a little and a little ...even some too

Look at the chart, it's all relative to where we started the month, right? It's been a good month but picking arbitrary time frames like that over short period of times like "one month" can be misleading.

Apparantly, you didn't get the memo. We are supposed to pile on while the news is good and drive the market through the roof...and then when we hear even the slighest negative thing like Bernanke has a hang nail, we crash back down and lose all gains and then some. Using reason is not a part of this!

[Troy Loney]

So...should i dump the equity portion of my 401K back into bonds?

DO NOT DO THIS! (was that loud enough for you)

Look, this advice is only worth what you've paid for it... but the next "Bubble" IMHO are long bond bonds...

Tomas?

Unfortunately I don't think any of my investment options are:

- Precious Metals
- Shorting the Euro
- Shorting US bonds
or
- Shorting the US economy as a whole.

[ExPatriatePen]

So...should i dump the equity portion of my 401K back into bonds?

DO NOT DO THIS! (was that loud enough for you)

Look, this advice is only worth what you've paid for it... but the next "Bubble" IMHO are long bond bonds...

Tomas?

Unfortunately I don't think any of my investment options are:

- Precious Metals
- Shorting the Euro
- Shorting US bonds
or
- Shorting the US economy as a whole.

Well.. those would be plays on macro economic trends (especially sovereign concerns), but there's noting to say that equities can't do well in those conditions as well.

Remember, equities have been over sold.. so a reversion to the mean, in and of itself, is good for an equity based portfolio.

[ExPatriatePen]

Italian bond market off today (rates higher) and the US Equities markets are responding in kind... Off > 1%

Interesting.

[ExPatriatePen]

John Corzine, Really? Really? You didn't learn anything from 2008?

You went long European debt, Really?

At least it's not "Too Big to Fail" it's "Too small to care"

[KennyTheKangaroo]

another lesson from Corzine/MF or MT or whatever its called:

It isnt always a great idea to get away from your bread and butter and try some new, higher margin business