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<p>The price of a stock can stay irrational longer than you can stay solvent, LOL!</p>
<p>NJRes, your story is amazing in that many people, after having been blown out in 1987 and ,would never have returned to the market.</p>
<p>CJES has fleets of trucks used in fracking. The price of nat gas does not affect its business except to the extent it reduces demand for finding nat gas. </p>
<p>Kyle Bass bought 5 percent of MGIC Investment Corp. (MTG). He’s super smart. It’s a little too risky for me, but it might pay off.</p>
<p>I am looking at PMT. I keep hoping it will crack a little so I can pick it up a little bit cheaper but it is very stubborn.</p>
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<p>The best traders I know don’t let it get to the point where they get blown out of the market. They have their exit points set and reset as the market moves. They take a loss and get right back in when their indicators are green.</p>
<p>I usually take a break of a few days to a week or two on larger losses but, as I get older, the losses don’t bother me so much. Just the cost of trading.</p>
<p>How did those best traders do in 1987?</p>
<p>[Stock</a> market crash - Black Monday - October 1987](<a href=“Domain im Kundenauftrag registriert”>Domain im Kundenauftrag registriert)</p>
<p>"On Black Monday, 19.10.1987, the S&P 500© Index lost 20.5%, the Dow Jones Industrial Average (DJIA)© lost 22.6% and the NASDAQ Composite lost “only” 11.3%. But this severe one-day US stock market crash also affected other international stock markets.</p>
<p>The aggregated implied volatility of at the money options on the S&P 100 (OEX)© soared from 36.37% (Friday, 16.10.1987) to 150.19% (Monday, 19.10.1987). The intra day high - and therefore the all time high since inception of this indicator - was at 152.48%!"</p>
<p>Most amazing trading day…ever…</p>
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<p>I don’t know; I generally ran into these folks in the late 90s or later.</p>
<p>One guy is in his 70s at least and has retired. I think that he started out in the 1940s as an engineer and he started in dividend stocks. I think that he was in very good shape by the 1980s. He seems to be able to understand sentiment well and when it should turn and then when to get in and out. He also seems to be incredibly well-disciplined. And he has a lot of contacts in DC.</p>
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<p>I remember watching that on TV in a hotel back then. I wasn’t in the stock market and wondered what the big deal was.</p>
<p>It was kind of a big deal…</p>
<p>Quietest day ever on the floor…</p>
<p>It was like people died…and financially many did…</p>
<p>People who lost everything were shell shocked…standing next to them…were traders that were getting rich…or at least doing well…</p>
<p>There is a lot of banter…teasing…antagonizing behavior on a floor…but not that day.</p>
<p>The quotes were delayed…the technology could not keep up…a stock with a last sale of 60 on a screen might really be trading at 40.</p>
<p>And the bids and offers… who knew what they were…nobody…but a stock with a last sale of 60 might have a quote of 30 bid …60 offer…</p>
<p>Kind of like AAPL having a market of 300 bid…600 offer… And investors and traders not knowing where the stock was really trading…</p>
<p>I think if people saw a market like that in AAPL…they would freak.</p>
<p>And options… Stocks went down…some call options went up…a lot.</p>
<p>1987 is not going to happen today…circuit breakers…</p>
<p>Actually, it isn’t the traders that I was thinking about leaving the market and never coming back…it’s the “regular people” who invested for college or retirement. I think some left and never came back!</p>
<p>I don’t think anything was as scary as the 2008 financial “near collapse.”</p>
<p>The stock market was crazier on Black Monday than any other day.</p>
<p>2008-2009. Compared to 1987…the stock market was worse in 2008-2009.</p>
<p>The economy…no comparison…much worse in 2008.</p>
<p>Many people have never come back to the markets. 2008 was worse for this…more people were invested and had more money in the markets in 2008.</p>
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<p>Yes, more people had substantial 401Ks in 2008 than in 1987. But the ones who are now painfully gun shy about the stock market are the young 'uns–those who haven’t lived through 1987 and 2001 and so don’t know that there is light at the end of the tunnel. </p>
<p>The only good thing about 2008 was that the stock market bounceback was relatively quick (bottomed in March 2009) with the markets taking off since then. If the market had meandered and done little (like the real estate market)–I think we’d all be more worried.</p>
<p>Reflating the stock market–is that what Ben Bernanke had in mind?</p>
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<p>That’s like the flash crash. One of my stocks was at $8, then dropped to $2. I tried to buy it. No such luck. It actually did drop to $3 at some stage and I did buy it.</p>
<p>Ellemenope…actually…that is one thing Bernanke had mind.</p>
<p>We must know different young people because…the young people I know are buyers…it is the older people near retirement age that are the deer in the headlights.</p>
<p>BcEagle91… That was a great buy…</p>
<p>You’re lucky that trade didn’t get busted.</p>
<p>The Flash Crash was similar…but just a fraction of Black Monday…the Flash Crash could have become another Black Monday…but it was over in what, 20 minutes?</p>
<p>[How</a> Recession Scars Will Haunt Young Investors](<a href=“How Recession Scars Will Haunt Young Investors | The Fiscal Times”>How Recession Scars Will Haunt Young Investors | The Fiscal Times)</p>
<p>I was thinking about articles like this one.</p>
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<p>Reflating the stock market, to make you ‘feel’ better about your financial situation, so you will spend more, so the economy will do better…hmmm</p>
<p>Ellemenope…interesting link…</p>
<p>Public participation is down…volume is way down…I guess that is true across all age groups…</p>
<p>qdogpa…</p>
<p>You have 100 in debt…</p>
<p>Your asset is worth 80…</p>
<p>You are underwater…</p>
<p>The FED through its actions…gets that 80 asset to be worth 140…</p>
<p>Your 100 debt doesn’t look so bad…</p>
<p>“Instead, relatively small amounts of that money are going into liquid accounts like savings accounts and money market deposit accounts, while much of it is being spent outright, he said.”</p>
<p>It’s hard to avoid spending it when it’s just sitting there earning no interest. I think that’s the point of driving interest rates to zero - flush out the cash into the economy.</p>
<p>It takes a little bit of effort to get your money out of a brokerage account but if you have stocks that you really like, taking money out for consumption can be hard because you don’t want to miss out on gains.</p>
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<p>If a company is earning a lot of money, and even giving some of those earnings to you on a regular basis, why not own it? If nobody else wants it, that’s okay if I just want income.</p>
<p>As far as volume goes, people got burned…they feel the game is rigged…they don’t want to play…</p>
<p>Others may need to sell stocks to live…</p>
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<p>If the game is rigged for you, why wouldn’t you want to play? Uncle Ben has been feeding the fire since 2009 - that’s rigging the markets for you.</p>
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<p>Shouldn’t be in the stock market if that’s the case.</p>