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Does anyone watch the stock market?

One year ago the Dow hit a high of over 14,000. Over the past week, it's fallen to below 9,000. It's down 42%!! Where is the bottom?

Answer Question

Asked by Anonymous at 5:40 PM on Oct. 9, 2008 in Politics & Current Events

Answers (7)
  • It going to the 7,000 range.

    Answer by akhlass at 6:30 PM on Oct. 9, 2008

  • The bottom of bear markets tends to be around 7 time the price/earnings (p/e) ratio. Right now, very roughly, that's about Dow 6,000.

    Answer by njmommy2boys at 6:48 PM on Oct. 9, 2008

  • Hopefully it completely crash, where the stocks are worth nothing more 1.00

    Answer by Anonymous at 9:05 PM on Oct. 9, 2008

  • It's probably going to be when the DOW and gold are equal in value.

    Answer by mrsdanahale at 10:26 PM on Oct. 9, 2008

  • The term 'bottom' refers to the past previous low or the lowest that particular market has seen in the history of that market. Highs and Lows (or bottoms) fluctuate and reset over time. Each time the low sets it is recorded, and then each high is recorded and the market is judged on a daily basis as to where it is in regards to the most recent high and low. The market is low right now, and we have been in a bear market for a short while in comparison to previous markets. The problem with today's markets is the volatility, the numbers on the big board aren't staying in one place long enough for traders to be able to make decisions on a daily basis. The term Bear comes from the hibernating bear, where it stays low and just sits there for an extended period of time, then is followed by a Bull market when stocks begin to charge and take off in an upward mode.

    Answer by jewjewbee at 11:43 PM on Oct. 9, 2008

  • Yes, but I'm not looking at my statements for some time!

    Answer by MojitoMama at 11:45 PM on Oct. 9, 2008

  • The key to the market is to not panic, watch but dont panic. Things are on sale right now, cheap and affordable. You can actually buy stock right now for 2cents a share. Really. The average turnaround for this event is a return over 5 years of 120%. If you notice what some have said about people complaining they cannot access their 401k's over the internet for the last 2 weeks, and are worried, it is because investors are buying up everything they can right now. Not because the sites are down or closing. I sometimes wonder if some higher ups on Wall Street did not have this planned. People don't actually lose money on their investments until they panic and sell off worrying they will lose more. You dont lose until you sell low.

    Answer by jewjewbee at 11:50 PM on Oct. 9, 2008

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