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Market recap: Fed-induced anxiety rattled across markets, with stocks plunging to their biggest...

Market recap: Fed-induced anxiety rattled across markets, with stocks plunging to their biggest selloff this year, gold sliding below $1,300 for the first time since Sept. 2010 and Treasury yields marching to two-year highs. A weak reading on China manufacturing, which helped slam crude oil and other commodities, and reports that the IMF could halt payments to Greece added to worries. All 10 S&P sectors fell more than 1%, and every Dow stock traded red. Homebuilders were hit hard by concerns that rising bond yields would mean higher financing rates for buyers.
Comments (22)
  • James Sands
    , contributor
    Comments (2431) | Send Message
     
    If this extends further some really nice buying opportunities could emerge rather quickly.
    20 Jun 2013, 04:13 PM Reply Like
  • mobyss
    , contributor
    Comments (2192) | Send Message
     
    Another 10 to 15% off the S&P and you might be right...
    20 Jun 2013, 04:27 PM Reply Like
  • mobyss
    , contributor
    Comments (2192) | Send Message
     
    BTW, seriously watching T and VZ for yield. 10% off either is probably a good buy right now.
    20 Jun 2013, 04:48 PM Reply Like
  • SoldHigh
    , contributor
    Comments (1013) | Send Message
     
    Market tantrum on Fed taking away punchbowl
    20 Jun 2013, 04:30 PM Reply Like
  • Whitehawk
    , contributor
    Comments (3129) | Send Message
     
    News of widening credit spreads and interbank lending issues in China did have a significant effect...this data needs to be more transparent, but we'll probably just see the after-effects in the futures and swaps markets.
    20 Jun 2013, 04:45 PM Reply Like
  • into dark shadows
    , contributor
    Comments (393) | Send Message
     
    Look, this is just the fed trying to reign in some of the speculation they have created!
    There is one word that brought the world to the edge of the abyss in 2007 and it is the same moniker at work today,
    LEVERAGE!
    The level of greed,leverage today is worse than at the prior top.
    This is nothing more than the cabal getting together, looking at each other and asking,
    are we really going to sit here at new highs and try and blow one more breath into this already stretched balloon?

     

    This is just the warm up folks, no way is everything honky dory like the bubble T.V. empty minded mouths would lead you to believe!
    The small guy is sitting on the sidelines laughing his arse off as the mo-mo barracuda's eat each other as they rush from the leverage they have piled on, wait till the margin calls start to go out.

     

    This was a cyclical bull market move,(based not on fundamentals, but MASSIVE liquidity by a fed that has lost control) inside a larger SECULAR bear market that started in 2000 and was TEMPORARILY halted in 2009 by a fed that thought they could control an otherwise uncontrollable system.
    Come hell or high water,
    this system will clear and although the pain will be legion (thanks to repeated intrusions by an overreaching fed) the free market system will be back one day in the future.
    64,000 dollar question is will we see it in our lifetimes or will it be in our children's lifetime?
    The damage done is not to be taken lightly, at some point, we will take out the 2009 lows....
    20 Jun 2013, 04:56 PM Reply Like
  • bankingqueen
    , contributor
    Comments (135) | Send Message
     
    I am all in for the 2009 lows to load up this time, cash in hand. We will see maybe I am dreaming. Wouldn't mind if the barracuda's destroyed themselves in the process. Maybe the little guy will win for once.
    20 Jun 2013, 09:54 PM Reply Like
  • Alex2322
    , contributor
    Comments (325) | Send Message
     
    Good buying from here. I like these points market was due for a huge one anyways. I think some get too wrapped up in comments and end up missing out.
    20 Jun 2013, 05:02 PM Reply Like
  • walter scott
    , contributor
    Comments (88) | Send Message
     
    For conservative, long-term dividend investors with no leverage, this is a buying opportunity which may get even more enticing in a month or two. In the mean time, let's celebrate the fact that the buying power of the cash we have is hopefully not going to evaporate as quickly as in the past.
    20 Jun 2013, 05:43 PM Reply Like
  • InvestoBullSG
    , contributor
    Comments (178) | Send Message
     
    A drop in margin debts will be good for those long term investors in the stocks markets.
    20 Jun 2013, 06:22 PM Reply Like
  • RS055
    , contributor
    Comments (3316) | Send Message
     
    Cannot discount a cabal of wall street and ultra-high-net worth types creating these periodic panics to buy up assets on the cheap. After all , if you are super wealthy - do you really want to be sitting on a huge pile of Dollars ? To leave your grandchildren? No way. The one thing history has shown us is - currencies lose value over time - no exceptions.
    The only way to preserve wealth is by owning assets.
    20 Jun 2013, 06:34 PM Reply Like
  • RS055
    , contributor
    Comments (3316) | Send Message
     
    Who got wealthy from that 2008 crash? Any of your neighbors? unlikely. Most reatil types dont have the ability to withstand a 20-30-40% type decline - they panic- they sell.
    Well... who bought all the stocks, gold, etc that was dumped in 2008?
    Right.
    You see, you have no chance against the big boys if you have invested money that you will need in the next 5-10 years. No chance. That is their edge. You cannot withstand a 30% assault. They can. So they win. Its simple - the rich get richer, because the non-rich cannot bear the volatility.
    20 Jun 2013, 06:39 PM Reply Like
  • WmHilger1
    , contributor
    Comments (1322) | Send Message
     
    Well, if you have a good solid income stream of 10% dividends coming in, as I do, you can wait this out for a very long time. I did in 2008 and made good money off of it. I can do so now.

     

    Those who are hurting badly as the ones who have invested in growth stocks with only miniscule dividends. In essence, at times growth stocks DO NOT grow, they decline; perhaps for years! While dividend stocks just keep rolling merrily along.
    20 Jun 2013, 07:24 PM Reply Like
  • RS055
    , contributor
    Comments (3316) | Send Message
     
    Well... what is an asset? Houses, strong companies, gold, diamonds, paintings, .... congressmen. Those are assets worth owning.
    20 Jun 2013, 06:43 PM Reply Like
  • VictorHAustin
    , contributor
    Comments (827) | Send Message
     
    So much for any claim that the market looks out to the future. Absolutely no surprises here, and certainly not for professional institutional investors, but the market acts as if some grey swan had just flown by.

     

    Isn't QE3 running longer than 1 or 2? What could big investors have been dreaming?

     

    If I seem peeved, well apparently I gave the major players too much credit. Guess its time to do more than just the hedge I closed today.
    20 Jun 2013, 06:49 PM Reply Like
  • yliu54
    , contributor
    Comments (171) | Send Message
     
    I guess one more day like this a lot of guys will receive margin calls.
    20 Jun 2013, 09:03 PM Reply Like
  • C.N
    , contributor
    Comments (223) | Send Message
     
    Dow Industrial last year selling at 13.85 pe , today at 16ish
    Utility last year at 16, this year at 24
    daq 100 pe last year at this time, 10.70, this year at 17
    s&p 500 over 17% gain last 52 weeks
    Russel 2000 over 25% gain
    Djia up over 17% over the last 52 weeks, so you expect some correction.
    20 Jun 2013, 09:16 PM Reply Like
  • Common Guy
    , contributor
    Comments (79) | Send Message
     
    Market trying to force the Federal Reserve to intervene;does the "benevolent" Bernanke come to the call in Jackson?

     

    Whitehawk has pointed something important that has been ignored... liquidity in China is a problem that could grow if confidence wanes.
    20 Jun 2013, 10:13 PM Reply Like
  • pollyserial
    , contributor
    Comments (1094) | Send Message
     
    China just injected liquidity tonight.
    20 Jun 2013, 11:52 PM Reply Like
  • carevans
    , contributor
    Comments (9) | Send Message
     
    Does any of you see 10 yr Treasury yields dropping in the next few months?
    20 Jun 2013, 10:16 PM Reply Like
  • pollyserial
    , contributor
    Comments (1094) | Send Message
     
    yes
    20 Jun 2013, 11:53 PM Reply Like
  • cwm345
    , contributor
    Comment (1) | Send Message
     
    waiting for the s&p to return to 1400s to jump in with both feet.
    20 Jun 2013, 10:16 PM Reply Like
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