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Down at 14776. And no real sign of avoiding debt ceiling until the 11 hour. Earnings season is starting, perhaps there will be some massively great news.....
How low will it go?
I predict 14400 ish. Then they will settle, with some more budget cuts. And.the market will have great run..... Perhaps 16000.
Maul, the Bashing Shamie
"If you want to change the world, be that change."
--Gandhi
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One of my personal favorite stocks, Netflix, took a dive today from 300 to 285 (currently). Its had a crazy climb over the last year and surpassed its 2011 pre-crash value of $295.
Not sure when is good to get back into it but I think it will prove to be a $300 stock again (or more) once this all blows over. Seems like investors love Netflix (and Amazon) and can't seem to give them money fast enough.
I'd still like to see a bigger dive before I get back into it though...
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If we default, I can see the dow falling 2-3000 points. Maybe more. And I'm beginning to worry that that outcome is getting more likely. I have some cash in my account, but I'm going to hold off buying until there is a light at the end of the tunnel.
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Cash is king right now. Wish my tza would.go black...
Maul, the Bashing Shamie
"If you want to change the world, be that change."
--Gandhi
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This has the tinfoil hatters all atwitter:
<!-- m --><a class="postlink" href="http://finance.yahoo.com/news/fidelity-exits-short-term-us-government-debt-221226300--finance.html">http://finance.yahoo.com/news/fidelity- ... nance.html</a><!-- m -->
- The nation's largest manager of money market mutual funds said Wednesday that it no longer holds any U.S. government debt that comes due around the time the nation could hit its borrowing limit.
Money market portfolio managers at Fidelity Investments have been selling off their government debt holdings over the last couple of weeks, said Nancy Prior, president of Fidelity's Money Market Group. While Fidelity expects the debt ceiling issue to be resolved, the Boston-based asset manager said it is taking steps to protect investors.
Prior said that Fidelity no longer holds any U.S. debt that comes due in late October or early November, the window considered by many investors to be the most exposed if the government runs out of money and defaults on its obligations.
...
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Interesting. So they are betting that they will not be able to sell bonds if the ceiling is not raised? Basically saying the American bond.img.worth the paper its.printed on?
And.this.is.fidelity... Wow.
Maul, the Bashing Shamie
"If you want to change the world, be that change."
--Gandhi
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Well the article says Fidelity has done this before, in 2011, but it does show that major investment firms seem to think a default is not that outlandish of a possibility.
Also says Fidelity has moved "a significant portion" of its portfolio to cash.
Definitely seems like there's a gearing up for a market crash, which will probably be followed by a good pouncing back on stacks that turn into bargains.
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Not to push this to politics. But the conspiracy in me says that most of the big boys out there would like to see another 1 or 2k drop. They make lots of money, and the only time really go long is after a crash. I bet they want it. I wonder if they would try to influence it to happen.
Maul, the Bashing Shamie
"If you want to change the world, be that change."
--Gandhi
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I had the same thought with the gold market. A default would probably boost its falling price.
