tag:blogger.com,1999:blog-12389938.post4777313367417044048..comments2024-03-27T19:37:18.558-05:00Comments on PawPaw's House: A CrisisPawpawhttp://www.blogger.com/profile/14959820068377494313noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-12389938.post-46192827924529970952008-09-30T20:11:00.000-05:002008-09-30T20:11:00.000-05:00Yep, bears make money, bulls make money, but pigs ...Yep, bears make money, bulls make money, but pigs (need to) get slaughtered.be603https://www.blogger.com/profile/16725527391429125225noreply@blogger.comtag:blogger.com,1999:blog-12389938.post-56775125792967333532008-09-30T18:21:00.000-05:002008-09-30T18:21:00.000-05:00That's right, oyster. In 2003 it was at 9000,...That's right, oyster. In 2003 it was at 9000, give or take. I thought that the 1999 figures were an aberration, and that the market wasn't really worth much over 10K. I didn't think that the economy had grown enough to support those figures. The market corrected itself, like it's supposed to.<BR/><BR/>In the crunch yesterday we didn't lose nearly the amount of value that we lost in 1987. At that time the S&P lost 20% of it's value and the Dow lost from the mid 2200s to the mid 1700s. It was quite a shock, but it didn't require government intervention in the form of a bailout. IIRC, the Fed propped up liquidity and the market rebounded after a short time.<BR/><BR/>Back in the day when I was in B-School, I was taught that a rational investor had to take a long-term appreciation in the market, and that a short-term attitude was doomed to fail. Nowadays, everyone is myopic in the extreme. The market might reward some short-term positions, but mostly it rewards the long term investor.<BR/><BR/>For the past ten years, the market and the traders have been extremely myopic and it's costing them.Pawpawhttps://www.blogger.com/profile/14959820068377494313noreply@blogger.comtag:blogger.com,1999:blog-12389938.post-49681921593206694572008-09-30T10:50:00.000-05:002008-09-30T10:50:00.000-05:00"It closed yesterday over 10,000 which five years ..."It closed yesterday over 10,000 which five years ago was considered Fairy-Tale land."<BR/><BR/>Huh? Five years ago (Sept 03) the Dow was in the 9000's. Four years before that (Dec 99) it topped at nearly 11,500. Now it's below where it was last decade. <BR/><BR/>Yesterday's drop removed a trillion dollars of market value from the stock market. I agree it's not a crisis, but... it won't take much more than that before it's a political crisis.oysterhttps://www.blogger.com/profile/05834991774263046373noreply@blogger.com