Edition: U.S. | Arabic | Set Pref
October 10, 2008
Posted: 907 GMT

LONDON, England — It is not hard to see why the markets have fallen so sharply today.  They believe no-one is at the helm. They believe that the policy responses we have seen so far are too little.

And in this scenario investors want out.

If you doubt what I say, ask youself. What are you doing in your investment decisions? Have you sold or gone into cash? I know we are all waiting to get back into the market, to get some stocks cheap, but is this the time?

The problem is that if you thought about buying last week, when the shares were down, you would have got burned — they fell further. So why do it this week when they might fall further and you can buy them even cheaper next week?

It is the oldest asset falling problems in the world. No-one will buy until they believe the shares have actually hit bottom or are at least bouncing around that area. The so called bottom fishers have not yet arrived.

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Filed under: Business • Financial markets • United States


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stephen isaacs   October 10th, 2008 1047 GMT

In reviewing the trends with the stock market tumble, initially there
appeared to be a relationship between the housing market and the stock market amist uncertainty with who would be the next president of the US. However, secondary trends appear to show a correlation between Barach Obama’s increasing rankings in the election polls and subsequent market slides. When McCain’s polls increase, the stocks rise a little. While this originally puzzled me, I realized that if Obama is elected president, he intends to tax the rich. By getting out of the market now, the rich can avoid paying the anticipated tax increases from Obama’s promises to raise taxes. Unfortunately, the people who will suffer the most are those backing Obama.

prashant   October 10th, 2008 1120 GMT

buy now, and average down all stocks

Rockey   October 10th, 2008 1218 GMT

Dear Stephen,
The fabulously rich do not need to worry about taxes. There are many financial vehicles to reduce it’s impact. The middle class who supply most of a nation’s taxes, are the ones ultimately affected negatively.

Viking   October 10th, 2008 1225 GMT

Look to Scandinavia(Norway) for safe haven….. High intrest rate, and a secure place for your money.

Jaime Remedios   October 10th, 2008 1301 GMT

Shouldn’t the governments (at least the G8) play the role of buyers and sellers in a coordinated way and simulate a recovery. Wouldn’t that instill some confidence in the market and prevent the panic from taking off?

In these times a little playing out behind the scenes may help.

It’s just a thought.

Tony   October 10th, 2008 1752 GMT

Time to get back into the market, interesting remarks after so many have been damaged during this fiasco. Now USA has lose control of a ragging fire that will further spread throughout all business sectors and around the world. Warning signs appeared nearly a year ago.

Prepare for rough times, I feel really sorry for the man on the street who will carry the burden.

forexthinker.com   October 10th, 2008 1952 GMT

Traders who use trading systems to trade the market will tell you “no, it’s not time yet to buy.” Why? Indicators are bearish. Until you see some consolidation at the bottom, or prices moving sideways on chart patterns, a reversal of current selling is unlikely. Unless, buyers jump and start buying on heavy volume for a sustained period of time.

BlackRaiser   October 10th, 2008 1955 GMT

People will get back into the market only when they are sure technology will NO LONGER be abused. We can see the abuses of technology growing around us every day: Surveillence cameras everywhere, employees micro-chipped in their hands, RF identity cards, email and phone calls intercepted. As a result, people are no longer willing to invest in those companies that greedily abuse technology. Let’s not kid ourselves. This technology can only sell if petty fear is spread and promoted. But now the hi-tech companies are being punished. Big Brother creates his own prison by surrounding himself with “the mother of junk databases.” Open up every phone book in the world. Spread them out in front of you. All the names are there, all the numbers. But there’s no real power to that: it’s a worthless database. When companies finally assure us that they will invest in the coming “technological singularity,” people will get back into the market. What’s the technological singularity? It’s the day when computers become more intelligent that all humans combined. It’s the day when we become a Type I civilization, and great discoveries await us for the colonization space.

Uma in Liverpool, UK   October 11th, 2008 637 GMT

Oh yes… I’m just dying to put my 80 quid a fortnight in some dodgy gambling scheme! The nice people at the DWP put it into my bank. I take it out and pay the nice people who rip me off for my tv license, my water, my fuel, my electricity, my phone, my tv, and my broadband.

Whatever’s left over, I eat, after being robbed for rice and dal.

Five fruit and veg a day?? The NHS should subsidise it, if it’s that important, because I can’t squeeze blood out of a stone!

Markets: involuntary gambling, forced on the unwitting, by banks. IF people want to gamble, it should be strictly VOLUNTARY!

J. Wright   October 12th, 2008 1647 GMT

It is my understanding that Ford is releasing a car in Europe that gets 65mpg and GM is releasing a car in India which gets 45 mpg. Why are these cars not being released in this country and why are the Japanese car makers not in trouble? Should we bail GM, Ford and Chrysler out?
NO!

John Davis   October 13th, 2008 230 GMT

For the most part, the little guy with his IRA and 401K hasn’t bailed out yet. And that is unnerving.

John Beckwith   October 18th, 2008 1643 GMT

Being a physicist, I look at financial displines as child’s play. These Darth CEOs are mildly smart but mainly amoral. Business does not require an education. It can be learned by workong and common sense and personal talent.

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