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Mass Sell Off across the World

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posted on Aug, 6 2007 @ 05:59 PM
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Originally posted by shots
Imagine that the biggest gain of the whole year


I don't think we're quite out of the woods yet. Strangely, the market rallied because they think the credit situation is so bad that the Federal Reserve will lower interest rates. If they don't, watch for another big sell-off.




posted on Aug, 7 2007 @ 10:17 AM
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NextStep,

I have been following this thread and appreciate your view. So what is the average, un-savvy investor to do to protect his 401K? One of my colleagues has sold out of all the stocks and put it into our 'cash' fund (which is averaging a return of .12% ytd). I am high on stocks but selling to buy bonds doesn't seem like a good long term strategic investment. Are foreign stocks a viable alternative especially if they are euro or china based?

I realize you are not an investment advisor but I just wanted a different point of view from the pro stock or run to the hills investors I seem to have around me.

Thanks,
Masawa



posted on Aug, 7 2007 @ 10:19 AM
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Originally posted by djohnsto77
I don't think we're quite out of the woods yet. Strangely, the market rallied because they think the credit situation is so bad that the Federal Reserve will lower interest rates. If they don't, watch for another big sell-off.


rates left on hold.

markets open up in the red.



posted on Aug, 7 2007 @ 12:27 PM
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Hi Masawa, Thank you for your question. Not being an american citizen I have not studied the pros and cons of investments and their result on your 401K, but I do know that in this phase of the market, if you invest overseas you are in a better situation than if you invest locally. Why? Because the devaluation of the dollar will no longer decrease the purchasing power of your money, instead raising the amount of US dollars your foreign currency/assets are worth. Good currencies to invest in are (right now) Canadian, Australian and NZ Dollars, all being commodity markets (therefore will experience less of a correction when it occurs as demand for their resources will remain high). Do note however that the NZ and Aus have similar ARM packages as they do in the states, plus they could see a reduction in investment capital due to a decline in kubayashi (yen-carry trade) contracts - may have spelled that wrong by the way.

So rather than investing in just one currency you can spread your risk by investing in multiple commodity markets in multiple currencies. How to do this? Can these overseas markets be trusted? Are their fees proportionate and competitive? ......many things to consider and many reasons to not even bothering taking the step to invest overseas, but that should not have to deter.

I am definitely not an investment advisor, and am not here to promote any commercial institutions, but perhaps you may want to have a look at Euro Pacific Capital. They have taken a step ahead of the rest and have done most of the homework themselves, charge low fees and are focused on genuine common sense investment strategies. You might want to check their website or have a talk to them just to expand your knowledeg base.

Access to liquid means will however be the most important thing moving forward, so make sure that any of your investments can easily be turned into cash (whichever currency you choose also) in less than a week.

Don't be too concerned with the daily ups and downs of the stockmarket right now. They are at the end of a cycle, I won't deny that, but there are strong forces working it both ways, and this will continue for another few weeks. Personally, seeing there is money to be made in any market situation, I say pull out your money now, exchange to foreign currency accounts (with govt backing) and wait for the correction. Then 3-4 weeks after this invest in commodities (still in foreign currency) and watch your money grow.

If there is anything else I can be of assistance with, I'm always happy to help.



posted on Aug, 10 2007 @ 12:54 PM
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Is there anyone who still wants to try and convince others that there is nothing wrong and there will be no sell-off?

Between now and end september we are going to experience some strange times in the markets, it has begun and there is no stopping it anymore.

Bernanke said the impact of the subprime mortgage wouldn't be more than US100Billion, yet in the last two days the ECB has already had to pump 210Billion in the european markets to finance recently lost liquidity.......

I am not suggesting it is only down from here, but the general direction will be down down down.



posted on Aug, 17 2007 @ 01:01 AM
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So now we have seen that globally central banks are pumping huge amounts into the markets to offset the liquidity crisis. What does this mean?

It means they are stalling the inevitable, and in the meantime your local money supply (whichever country you are in) is experiencing monetary inflation, which will effectively transpire into price inflation a few months down the road.

It is a method of shifting corporate losses down to the consumer, and reducing your purchasing power as a result.



posted on Aug, 17 2007 @ 02:10 AM
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Originally posted by Nextstep
So now we have seen that globally central banks are pumping huge amounts into the markets to offset the liquidity crisis. What does this mean?

It means they are stalling the inevitable, ...




to my thinking It Means the Fed is concerned about many giant investment houses falling like dominoes...

the Fed relaxing credit requirements, along with the lines of commercial credit thats available to these issuers of debt instruments (mortgage paper)...what we call 'Liquidity' is a temporary measure
for the purpose of dragging out the sudden mad rush to redeem the bad paper all these Hedge Funds, Mutual Funds, Pension Funds, Corporate treasuries, etcetera, are invested in.

The major movers & shakers, think of the Carlisle Group as an example,
who have Billions invested in what was once thought to be a safe haven of Mortgage bonds...will be the first ones to exit the disaster with govt. injected money we ostensibly call 'Liquidity'...

the 2nd & 3rd tier investment giants will lose out big time ...along with the portfolios of Funds (think 401K) that hold a lot of the mortgage paper.
Bonuses will be extremely meager in 2007 as many get axed in the fallout from this derivative fiasco.

A new/ restructured benchmark will have to be established, and i'm thinking it will be ~10,500...& then the economic engine can rebuild itself,



posted on Aug, 17 2007 @ 04:16 AM
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Originally posted by St Udio
The major movers & shakers, think of the Carlisle Group as an example,
who have Billions invested in what was once thought to be a safe haven of Mortgage bonds...will be the first ones to exit the disaster with govt. injected money we ostensibly call 'Liquidity'...


Thats so sick, that the big boys always find ways out to save there skin. I assume that big players own the groups like the carlisle group, so they will always have first word on whats going on.



posted on Aug, 17 2007 @ 08:01 AM
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Boy those Clintons sure got lucky when they dumped that blind trust when they did. wink wink

And I bet they sit on that cash until the market finishes bleeding red, and using that same luck, they'll know when to buy back in at the bottom.

Pure luck I tell ya, pure luck...



posted on Aug, 17 2007 @ 08:22 AM
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Well, at 9AM eastern, the whole landscape changed in an instant.

what happened is the Fed lowered the 'overnight Fed funds rate'
the rate the banks borrow money at.

which strongly implies that the Fed Fund rate will drop by .50 percentage points as well at the next Fed. meeting....

which will result in many housing mortages not falling in default/foreclosure.
as the many Adjustable Rate Mortgages(ARMs) will actually result in a smaller monthly payment....
and this action of lowering the rate will tanslate into about 1+ years of
regular monthly mortgage payments before the ARMs once again become too expensive to repay...and we experience a repeat of this week!

dodging the bullet is what i say....



posted on Aug, 17 2007 @ 09:01 AM
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StUdio, will this include the fix interest rates or just variable.

I am interested on this, because if is only for variable is nothing more than delaying the foreclosures just so the markets can look good again.

Very deceiving.



posted on Aug, 17 2007 @ 09:16 AM
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Originally posted by marg6043
StUdio, will this include the fix interest rates or just variable.



just the variable rate loans, i.e. ARMs

the fixed loans (mortgages) are fixed at a certain rate for the duration of the loan...
i myself once had a 15 year fixed, many others try to get a 30 year fixed so they can buy more house at the beginning.


i'm afraid that unless the sub-prime bad paper issue is restructured, somehow,
that this 'promising' start will only delay the now future Day-of-Reckoning

maybe through attrition over a longer span of time is how the sub-prime problem will correct itself...rather than the mad rush excape of this week,
which nearly collapses mortgage banks & financial providers, etc etc



posted on Aug, 17 2007 @ 09:44 AM
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This practices are as deceiving as the false sense that our markets are just finnnnneeee.

Nothing more that the big fat cats getting their butts safe while delaying the future.

Incredible.



posted on Aug, 17 2007 @ 09:46 AM
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Originally posted by discomfit



Oh my god you mean markets don't always go up !

DOH !

Seriously, why is anyone surprised.


Heh...you're better off gambling in Vegas - the odds are not quite as good, but the only person you wind up scr*wing is yourself


J.



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