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Discussion Starter #1
I WAS A LITTLE MAD today after seeing the FED cutting rates by a quarter of point today. My stock ended getting kicked in the nut sack along with others that I watch like Apple and Google. Google had upwards of $23/share gain today then Fed cut rates and the last I saw was $15.89/share. Apple had over $3/share gain and when rates were cut it actually closed a $1.10/share less than what it opened at. I would have been a lot more satisfied with the Fed leaving the rates where they were. What they did today I don't think is really going to help anyone out, due to the housing market can't be fixed.

People that are hurt by the housing market definitely paid too much for their homes, and the only way they can be helped is someone gives them money to pay their loan down to a payment that they can afford. Refinancing won't help them either, because they never would have qualified for a good interest rate from the beginning.

The market from the looks of how it closed today will possibly be bearish for the remainder of the week. Gold stocks were up, however even they lost some of their gains when approaching market closing. Everything was gaining and then all of a sudden it was like a "fire sell" and all those gains were out the window quickly. Dow at one point was up 160 pts., but closed 11 pts in the red. I'm glad that they are cutting the rates, however the cut today was completely unneccesary. The dollar was looking a little stronger over the last week, but they ruined that dream today with the rate cut. Hopefully this will blow over quick and the market won't remaing bearish for long! Ok, I think I'm done with my rant now!
 

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LOL, I hadn't heard ANY analysts predict that they wouldn't lower the rates this session. If the sell off was due to the rate cut, the bulk of investors are effing retarded.

It's like being surprised when a bus hits you even though you've been staring it down for 1/4 mile.
 

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[quote author=Alec Trevelyan link=topic=110436.msg2276934#msg2276934 date=1209587899]
Yeah the Dow closed like 11pts down today, when it was 130pts UP earlier. Good job Fed!
[/quote]

And that is why approx. 75% of my holdings are in foreign companies.
 

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Discussion Starter #5
Yep, quite the BS in my book. I felt we had already lowered the rate as much as well could, and the market has really been improving as well. There's been some big mergers with strong companies, and weak companies attempting to merge with weaker companies (Blockbuster to buy Circuit City and Microsoft to buy Yahoo). I'm more or less upset, because people react to the market weird. Everyone knew the rate was going to either get cut .25% or remain unchanged, however the majority should have known the cut was going to happen. I trolled some forums and many wanted to keep the rates the same. I was mainly upset because I hated seeing the market rally and then have a debilating crash 1.5 hours before the market closed. I'm sure people are a little pissed today.
 

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Discussion Starter #6
[quote author=fatabbot link=topic=110436.msg2276942#msg2276942 date=1209588148]
LOL, I hadn't heard ANY analysts predict that they wouldn't lower the rates this session. If the sell off was due to the rate cut, the bulk of investors are effing retarded.

It's like being surprised when a bus hits you even though you've been staring it down for 1/4 mile.
[/quote]

Analysts didn't predict, but many people felt the rates were ok, and would have liked them to remain unchanged. The general consensus was that rates were gonna be cut a quarter of a percent today and that is what happened. That's exactly what the market did today compared to the rate cut. I don't know if people were rallying the market expecting the rate to fall or remain the same. I've been noticing lately that their must be a lot of people that strickly day trade, because what happened today was just foolish. It was one of those things where you have faith in the dollar and then the rate gets cut, and then you say the dollar is bullshit. It was .25% and if the market would have held out then the dollar would not look so weak. I swear people need to hold on to their investments longer than 2 hours. I hate losing money just as much as anyone else, but I've seen one of my stocks gain $1.39/share in value in a month. The other two stocks I sold off after losing 5% on each. Once I lose 5% on a stock I dump them, unlesss I feel that they can really rally back. I had gold and an oil and gas and one rallied back this week, but I sold it 3 weeks ago. Gold hasn't rallied back in 2 weeks.
 

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[quote author=weezerfan84 link=topic=110436.msg2276951#msg2276951 date=1209588312]
Analysts didn't predict, but many people felt the rates were ok, and would have liked them to remain unchanged. The general consensus was that rates were gonna be cut a quarter of a percent today and that is what happened.
[/quote]

Articles on Reuters, MSNBC and CNN all state that the massive selloff was mainly due to the fact that the Fed pretty much stated no additional cuts would be make because the downside risk of inflation.

The market didn't lose its gains because of the cut, it lost them because the clarity of the Fed's statement regarding future cuts.
 

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Discussion Starter #8
So you're saying the fed stated that it wasn't going to cut rates again? I'm confused because I haven't heard such a thing at all today. The GDP was a little bit better today so that definitely helped rally together the troops. I guess fatabbot I'm a little confused on what your trying to get across, because to me the fed said one thing, did another, which caused a big sell of trades before the market closed.
 

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[quote author=weezerfan84 link=topic=110436.msg2276951#msg2276951 date=1209588312]
I've been noticing lately that their must be a lot of people that strickly day trade, because what happened today was just foolish.
[/quote]

This is why I make fun of everyone that plans retirement by assuming they can make 8-10% every year on their investments. The overactive traders and market timers are ruining the game for the true investor.

Planning retirement? Count on 2-3% average max per year for the next 40 years.
 

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[quote author=weezerfan84 link=topic=110436.msg2276971#msg2276971 date=1209588714]
So you're saying the fed stated that it wasn't going to cut rates again?
[/quote]

Not explicitly, but it's not difficult to ascertain how they're leaning from reading their statement:

The Federal Open Market Committee decided today to lower its target for the federal funds rate 25 basis points to 2 percent.

Recent information indicates that economic activity remains weak. Household and business spending has been subdued and labor markets have softened further. Financial markets remain under considerable stress, and tight credit conditions and the deepening housing contraction are likely to weigh on economic growth over the next few quarters.

Although readings on core inflation have improved somewhat, energy and other commodity prices have increased, and some indicators of inflation expectations have risen in recent months. The Committee expects inflation to moderate in coming quarters, reflecting a projected leveling-out of energy and other commodity prices and an easing of pressures on resource utilization. Still, uncertainty about the inflation outlook remains high. It will be necessary to continue to monitor inflation developments carefully.

The substantial easing of monetary policy to date, combined with ongoing measures to foster market liquidity, should help to promote moderate growth over time and to mitigate risks to economic activity. The Committee will continue to monitor economic and financial developments and will act as needed to promote sustainable economic growth and price stability.

Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; Timothy F. Geithner, Vice Chairman; Donald L. Kohn; Randall S. Kroszner; Frederic S. Mishkin; Sandra Pianalto; Gary H. Stern; and Kevin M. Warsh. Voting against were Richard W. Fisher and Charles I. Plosser, who preferred no change in the target for the federal funds rate at this meeting.

In a related action, the Board of Governors unanimously approved a 25-basis-point decrease in the discount rate to 2-1/4 percent. In taking this action, the Board approved the requests submitted by the Boards of Directors of the Federal Reserve Banks of New York, Cleveland, Atlanta, and San Francisco.
Compare this with past statements, and you'll see what I'm talking about.
 

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[quote author=weezerfan84 link=topic=110436.msg2276971#msg2276971 date=1209588714]
because to me the fed said one thing, did another, which caused a big sell of trades before the market closed.
[/quote]

How did they say one thing and do another?

They had hinted for the past several weeks of another, smaller reduction in rates. Which is exactly what we got :dunno:
 

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Discussion Starter #12
Well, I can't say that I'm not trying to make money on the market, but it's not for retirement. I had some money laying around that I didn't want to contribute to a ROTH so I decided to put it in the market. A buddy and myself both play stocks and he's lost over $250 on gold and he still doesn't want to sell. He's the type that wants to maximize the least amount of loss as possible. I on the other hand if I lose 5% in a day it's back to the drawing board. It's not that I want to day trade it's just that I bought it at a bad time. If it losses a penny here and there and then gains a penny here and there then I'm A ok, but so far any stock that lost 5% quickly lost 10-15% more throughout the week.
 

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Yikes, if you have a severe aversion to any loss > 5%, I'd get the hell out of stocks, IMO.

When my money's in the market, it's not unusual for it to fluctuate 20% in one day :lol:
 

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Discussion Starter #14
Articles on Reuters, MSNBC and CNN all state that the massive selloff was mainly due to the fact that the Fed pretty much stated no additional cuts would be make because the downside risk of inflation.

This statement is what's confusing me. Were people reading it as no more cuts were being made after todays cut, or they were gonna meet and there was going to be no cuts today or for a while. I guess that is where I'm getting confused. I knew they were going to cut today, but I guess investors felt the Fed said they were meeting today with the plans to not cut the rate?
 

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Discussion Starter #15
I play stocks that have big market caps and high 30 average volume trades. They "tend" to not fluctuate as much in the market, and it pretty much ensures I'm going to be a long term gainer and not short term. I dabbled with a stock that average about 63k shares for 30 days, and I got lit up in 2 days. Dropped 5% while I was holding it, got rid of it and it dropped about another 5-6%. It's probably only rebounded about 2% thus so far, but it was also a commodity. Analyst are saying ditch gold (except for Crammer, but he also has AUY, Yamana Gold, in his portfolio), and they are high and mighty on the dollar. I was excited because I'm holding a stock that matters a lot on consumer income and how well the company does. The company is doing poorly, however the stock is really cheap right now so hopefully the many people who have bought it lately are in it for long-term.
 

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[quote author=weezerfan84 link=topic=110436.msg2277012#msg2277012 date=1209589194]
I knew they were going to cut today, but I guess investors felt the Fed said they were meeting today with the plans to not cut the rate?
[/quote]

No, investors knew they were going to cut the rate. The response to the minutes of the meeting was due to their shift from the weakness of economic activity to the risk of inflation.

Rate cuts do not drop stocks, 99% of the time.
 

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Discussion Starter #17
Ok. I got it now. The risk of inflation was the big problem. I remember reading the risk of inflation on a popup, but i didn't think much about it, because I was watching my stock tick down. Sorry, if I sound nobbish, but I've only been in the market 4 weeks. I'm learning as I go, and I'm trying to pick up on trends. I found one trend in some stocks I look at. Google, Sprint, and Verizon all had the same day as 52 week lows, and have been growing excessively sense. Sprint is up over 2.30/share, Goog is something like $140/share, and Verizon is around $5/share. Nothing significant, but I thought it was kinda interesting.
 

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I was going to put about $50k in google at their IPO, but I chickened out. Would have been sitting pretty now if I had :lol:
 

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unless you have millions and/or are making your firm big bucks, you aren't gonna get in on an ipo like google. it's at the firm's discretion as to who gets allocated shares (i.e. the most profitable clients). so don't feel too bad about it. you probably wouldn't have gotten any.

and how can you POSSIBLY say you expect to get 2-3% over the next 20 years?!?!?!? it's people like you who, even though the S&P has averaged 12% over the past 10 years, are seeing only a 4% return. proper allocation and diversification have PROVEN to return 7-12% EVERY YEAR ON AVERAGE!!!!!! don't time the market; give the market time.

and clarify what you mean when you say you didn't feel like contributing to a roth, and instead put the money in the market. you do realize that you could have made THE EXACT SAME INVESTMENT completely tax free, right? unless there's more to the story (and i'll say this one more time so it's not missed) unless there's more to the story, i'm confused, unless you didn't mention a key detail as to why you didn't make the investment in you ira.

P.S. sorry if that came off really bitchy, but i've just been dealing with some grade A assholes the past hour and it may be rubbing off here.
 

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one more thing i forgot to mention: oil. this cut will adversely effect the price of oil. the $ is already on life support (which has sent oil skyrocketing), and this move may have just pulled the plug. thanks ben. we appreciate it.
 
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