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Forums - General Discussion - How far will the stock market plunge?

The_vagabond7 on 23 February 2009

When the housing bubble burst, banks started to tank, and the word "recession" started to be thrown around as if it was a dirty dirty thing, I never expected that there would be any realistic chance that the dow could dip into the 6000s I thought low 8s, high 7s at the worst. And yet it's sitting just on the brink of 6000, and the way things are moving it could be there by the end of the week. If I were a gambling man, I would start a betting ring around how low the dow drops before it starts to climb back up....hmmmm, I think I'll make some calls...ah screw it, noby noby boy just finished downloading.



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The Ghost of RubangB on 23 February 2009

4200.



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BHR-3 on 23 February 2009

yeah i never though it would be where it is now i though low 8's would be the lowest im going to say 6,200



                                                             

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akuma587 on 23 February 2009

The problem is that the banking situation keeps getting worse than everybody thought it was going to be...and we still have no idea how many toxic assets there really are out there...not to mention the rest of the world's economy is tanking too. Investors have no faith whatsoever in financial institutions.

Banks are on the verge of massive failure. This isn't going to be pretty. This may be even worse than anyone ever expected. Frankly, we might see the DOW drop below 5000.



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kirby007 on 23 February 2009

half a year ago I expected 7500 but man I thought it would be the worst case senario



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Sharky54 on 23 February 2009

3000 is my guess. We are all screwed lol



mmnin on 23 February 2009

I really don't know the economy that well sadly.




The_vagabond7 on 23 February 2009

Alright, so hypothetical. If the Dow drops to say....somewhere in the low 5000s, what does this mean for our economy, the world economy, and the growth of business? I mean that's got to have some sort of serious repercussions.



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HappySqurriel on 23 February 2009

Its difficult to say ...

In spite of all the great advice our parents and grandparents gave us when we were growing up about living within our means and saving for a rainy day, we’re now at a time where two generations of adults have lived beyond their means and have no savings. Up until a couple of years ago, most of these people managed the unexpected expenses and setbacks in life by tapping into their home equity or taking on more debt.

When you combine the lack of savings with the lack of easy to access credit and the loss of equity in the housing market people don’t have many places to go to get more money. The most liquid asset many people still have access to is their stocks, bonds, etfs or mutual funds (inside or outside their 401k/RRSP).

What this means is the market will continue to fall as long as the economy continues to get worse, and the people who have cash to make investments at the bottom could potentially benefit by picking up stocks with a 2.5 p/e ratio and/or a 20% yeild.



Jandre002 on 23 February 2009

This is absolutely horrible. Who in their right mind goes out and buys a new car with the DOW barely at 6000?

I don't think this downward spiral is done yet. I expect that tomorrow we'll probably see the dow drop enough to trigger the "circuit breaker". I just wish they would get this sell off over with already so we can see where we really stand.