| Anyone watching the TSX today? - Click HERE for Original Thread |
| JustinL |
| OUCH! Down 408 points last I checked. |
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| Inzane |
| Now that you mention it, yeah what the hell!! :dunno: |
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| GQsmooth |
| who cares?:dunno: |
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| TrevorK |
Maybe the banks decided to take a break today and stop pumping in money like they've been doing the past little while?
I know I'm watching the bank stocks - I think they may just start their rebound today. |
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| JustinL |
quote:
Originally posted by GQsmooth
who cares?:dunno:
Ummm anyone who has investments in the stock market... RRSP... Mutual funds... a general interest in business and finance...:dunno: |
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| little_one_der |
| What's the verdict of why it happened? |
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| TrevorK |
quote:
Originally posted by little_one_der
What's the verdict of why it happened?
I believe it's still related to the subprime mortgage fallout? |
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| little_one_der |
quote:
Originally posted by TrevorK
I believe it's still related to the subprime mortgage fallout?
Can you point me in the right direction to educate myself? Like what do you mean "mortgage fallout?"
And it happened all over North America? It's not like what happened locally in the last two years in the housing market, is it? |
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| stealth |
| Do you guys think it has hit rock bottom? |
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| TrevorK |
quote:
Originally posted by little_one_der
Can you point me in the right direction to educate myself? Like what do you mean "mortgage fallout?"
And it happened all over North America? It's not like what happened locally in the last two years in the housing market, is it?
The US housing market has crashed in many areas one big reason is because people were essentially borrowing more than a house was worth in hopes of it going up in value to cover what they borrowed.
When the market slowed down, and housing didn't appreciate at the rate they needed there were many people trying to make payments on houses they couldn't afford, and couldn't get the equity out of it to secure a lower rate.
This has caused ripples around the world's financial community.
If you google "US subprime fallout" (without the quotes) you'll be able to learn all the details of the situation, and why it can't happen in Canada (The actual situation, we're inevitably tied to the fallout from it in the markets and whatnot). |
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| little_one_der |
| Thanks Trevor. |
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| ozzmodan |
Wasn't a large portion of the sub-prime mortgage problem due to hedge funds which indirectly bought into these "lots" of subprime mortgages & got burned when they started defaulting & therefore had to sell other positions to cover the losses incured, which therefore lowered the value of those securities that had to be sold?
Also, from my understanding, a large portion of American's leveraged their properties to buy securities that they really couldn't afford & when the slowdown started, they ended up selling said securities to put the equity into their property again. In turn this also contributed to the lowered value of the securities they held.
Very complicated situation in any case & I'm guessing that it'll be, at best, a sideways situation for the Canadian market until the beginning on November. Again, like anything in the world of finance, that's just my best guess.
Kyle |
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| chewy |
quote:
Very complicated situation in any case & I'm guessing that it'll be, at best, a sideways situation for the Canadian market until the beginning on November. Again, like anything in the world of finance, that's just my best guess.
Question: why until the beginning of November specifically? |
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| ozzmodan |
Like I said it's my best guess.
This is how I see it happening:
Fuel:
- I'm still thinking that valuations are still a little high.
- The amount of leverage used in the states is still high.
Ignition:
- October markets have traditionally been weaker. Both the 1929 & 1987 stock crashes happened in the last half of October. It seems to pretty much be a self-fulfilling prophecy, people think the market is weaker in October so therefore it gets weaker.
Accelerant:
- The increased use of trading systems that buy/sell on technical analysis & witchcraft.
- More & more average people are investing, this is usually a good indicator that the "smart money" has already been had. It's usually easy to tell when this is happening, Mutual fund sales hit record highs, more infomercials for trading systems & hearing investment talk in unlikely places (eg. car forums.) Unfortunately the people that buy once they hear the great success stories are also usually likely to sell out easily.
I'm guessing/hoping that this will spark the American markets to decline & the Canadian markets will follow. Again all this is purely my guess. |
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| little_one_der |
| And then I can buy a cheaper house?:dunno: |
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| TrevorK |
quote:
Originally posted by little_one_der
And then I can buy a cheaper house?:dunno:
I don't think you can draw a relationship between the stock market and housing prices, especially in a boom-bust economy like Alberta. |
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| ozzmodan |
| The effect on housing in Alberta should be minimal or none. You could even perhaps make an arguement that a stock market decline could cause short-term housing prices in Alberta to actually increase (people see real estate as an even better investment=higher prices) |
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| Godzilla |
| wow, i thought this thread was about an acura, after the 3rd post a.d.d. kicked in and now i'm not even sure where i am |
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| GOT BOOST |
quote:
Originally posted by TrevorK
I don't think you can draw a relationship between the stock market and housing prices, especially in a boom-bust economy like Alberta.
Hi Trevor,
I tend to dissagree to a point. Housing stats are one of the leading indicator for the economy. Typically in a stong economy housing stats are strong. During a weak economy the opposite is true. There are of course other leading indicators that can signal different indications of the equity market movement.
Mike |
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| JustinL |
| UGGGH looks like today is going to be another bad one. Down 500 points at one point this morning. |
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| ozzmodan |
This drop is Loooooong overdue, it'll be nice to finally have a good selection of value stocks again. Kind of sucks I was over a year early in predicting when it would drop & missed some OK deals.
Kyle |
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| stealth |
| It's depressing... |
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| kevito_ |
| Consumers are in all time high for debt load... but consumer spending is still up! Keep the markets going... everything is fine. It's not like those two things are related :lol: |
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| Prudz_lude |
quote:
Originally posted by kevito_
Consumers are in all time high for debt load... but consumer spending is still up! Keep the markets going... everything is fine. It's not like those two things are related :lol:
:lol: |
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| little_one_der |
| I'm out of debt. :blue: |
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| Stainless |
| And back up she goes. So much for "black tuesday". The TSX has recovered 400 points already this morning. Someone is making a shitload of money today. |
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| JordanJ30A5 |
quote:
Originally posted by Godzilla
wow, i thought this thread was about an acura, after the 3rd post a.d.d. kicked in and now i'm not even sure where i am
You're not the only one, lol. |
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