BREAKING NEWS: Dow Loses More Than 400 Points

[PhilipShore]

http://www.banknet360.com/news/NewsAbstract.do?na_id=7717&service_id=1&bi_id=

A mixture of weakness in the Shanghai market, poor durable-goods data, and increased uncertainty about Iran and Afghanistan led to a broad selloff as the Dow lost more than 500 points Tuesday before regaining some ground.
BankNet 360

All of this follows former U.S. Federal Reserve Chairman Alan Greenspan warning Monday that the U.S. might slip into a recession by year’s end, according to an Associated Press story. “When you get this far away from a recession invariably forces build up for the next recession, and indeed we are beginning to see that sign," Greenspan said to an audience at a Hong Kong business conference.

Shanghai's Composite Index had its largest decline in a decade, nearly 9%, sparked by investors attempting to cash in on big gains and desiring to avoid any government attempts to cool the markets. Also on Tuesday, the Commerce Department said January durable-goods orders fell 7.8%, to a seasonally adjusted $203.9 billion, which surprised economists expecting a 3.2% drop.

Additional concern was caused by Iran’s foreign minister saying Tuesday that Iran would never suspend its uranium-enrichment program. Also on Tuesday, Vice President Dick Cheney was the apparent target in a suicide-bomber attack in Afghanistan that left up to 14 people dead. Cheney was uninjured in the attack.

[goclark]

1. Did the market drop the day before 9 11 ?

[TomClash]

3. No but . . .

. . . it dropped nearly 1,000 points in the six weeks before 9/11.

[WiseButAngrySara]

2. Oh please! Cheney's death would likely cause a surge in

the stock market. How can anyone think that his 'supposed' imminent harm have anything to do with this?

[ronnykmarshall]

4. I don't even want to look at my 401K,

:scared:

[SharonRB]

5. Yeah, that's how I feel.

I know I'll look at it tomorrow and shoot myself for looking.

[Bolo Boffin]

7. The only consolation is

now you can buy shares in your various funds at lower rates, and the money should rebound quicker.

But yeah, I've got a 403b (non-profit version of 401k) and I'm going to resist looking as long as I can.

[Bolo Boffin]

6. From Bloomberg:

U.S. stocks plunged, wiping out about $600 billion in market value and erasing all of the year's gains, after a selloff in China spread globally and sparked the biggest rout since the bull market began in 2002.

$600 billion dollars in a single day. Wow.

[AlCzervik]

8. Cheney's non near miss has nothing to do with imo.

[Matariki]

16. You're correct. It was mostly a reaction to the Chinese stock market going down 10% last night

combined with the fact that the US market has been largely overvalued and heading for a correction anyway.

[RC Quake]

9. Been waiting for this day to come for a long time.

Every day we have seen our stocks go up and up and up for about 2 years now. Our home tripled in value since we bought it and our 401 k tripled in value in the last 2 years.

Every day my spouse comes home and announces the new value of our retirement and I just shudder at when the bottom will drop out. This is a market correction that was drastically needed, IMO. No worries. Although, I don't even want to know how much of our retirement was lost today.

[A HERETIC I AM]

Unless you planned on liquidating it tomorrow, stop worrying.

n/t

[Deja Q]

14. Ditto, to both of you.

:)

[RC Quake]

15. Should I worry if liquidation is in 3 years?

[A HERETIC I AM]

17. No. Don't worry, just properly allocate and diversify.

If all your retirement funds are tied to equities then you need to diversify. Get help doing it. A properly diversified and allocated portfolio will make what happened yesterday and what may happen in the coming days little more than a small bump in the road instead of a major hole in the ground. But even then, like every hole, there is always the other side.

[A HERETIC I AM]

10. delete. damned mouse clickerizer

n/t

[A HERETIC I AM]

11. delete

n/t

[malaise]

12. More details

<snip>
The sell-off was sparked by a near-9% slide on the Shanghai Composite Index, as investors worried that China may pass rules to limit demand for stocks.

The Dow Jones fell more than 500 points at one point, before closing down 416.02 points, or 3.29%, at 12,216.24.

The FTSE 100 closed on a fall of 2.3%, or 148.6 points, to ,286.1.
-------------
China is ready to retaliate
http://news.bbc.co.uk/1/hi/business/6400789.stm

[OPERATIONMINDCRIME]

13. Let's Hope For A Rebound Tomorrow. n/t