Who takes the worst hit??

[fatbacker]

In this new bear market we are in there are very few major corporations that have not taken a pretty big hit in their share price. In a news article I read over the weekend it said that on Friday the number of stocks declining over the ones that were trending upwards were 2 to 1. Not bad I guess but Thursday it was 3 to 1 ratio.

Everyone knows that their had to be a correction in the market at some point in time and the bears are certainly cleaning up right now.

I would like to hear opinions of others on how long they think the bear market will last and which stocks or even sectors might be affected the most short term and which ones they think will be affected after the market is back to a normal levels.

The ones I see taking the biggest hits will be the Bank Corps and holing companies. I see this due to the big deal about subprime levels.

[daiello]

Everything can be affected depending how hard this "correction" hits.

We have high gas prices, meaning more money spent on life's essentials rather than new computers, new cars, etc.

This will lower earnings estimates, in turn lower stock prices, which could lean towards less investment capital, meaning more negative stocks.

It really sounds bad when you look at it.

[Kuzami]

[QUOTE=daiello;7436]Everything can be affected depending how hard this "correction" hits.

We have high gas prices, meaning more money spent on life's essentials rather than new computers, new cars, etc.

/QUOTE]


Gas price here down from 3.10 to 2.85 in the last month...

[daiello]

Yeah i was wondering about that. Gas prices are down, yet oil futures keep going up.

Prices will change soon i think.

[BadThad]

Looks like housing and mortgage companies are the worst hit. Subprime loans and reduced construction spending have scared investors.

[Kuzami]

Not too worried about anything at this point. The nature of the stock market is that it will bounce back. I'm seeing lots of red in the ole portfolio atm, but I know if given enough time "most" should come back I won't count on them all! Anyways, I'm having lots of fun trying to determine where a stock will go from day to day. Win or lose I always find something interesting to look at.

[sevago00]

Originally Posted by BadThad

Looks like housing and mortgage companies are the worst hit. Subprime loans and reduced construction spending have scared investors.

the real estate industry makes a huge portion of the economy (its one of the biggest if not the biggest). so obviously bad real estate messes up the economy thus hurting the stock market. on another hand, value of a dollar is alltime low. so we are spending more dollars than ever to buy imports. we are importing more and more and its costing us more to import. global economy expansion is attracting alot of the money that used to go to US.

as for gas, people can argue many other ways. gas might not be too expensive if you think that our $ value has dropped. if you think of back in the days (maybe 50s or 60s?), a gallon of gas costed about 25cents. back then, a quarter was made of silver. nowadays, if you get that quarter made of silver and melt it, it will sell for more than $2. so in another way, the price of gas hasnt changed much. btw, have you ever compared a gallon of gas with a gallon of milk or even a gallon of juice?

[Ciao]

The bank and commercial finance do loan quite a bit to industries… cars, pharma, researches etc….
IMO could be the drop that spill the bucket…
Watch out because it could be serious….. even if it goes up some day will be a false alarm… until the economy settle
Saying that in a wide market there are always those who goes up… time to short, covered warrants “put” and wait to buy it cheap…

for info the main Eropean market are reds ( -2% ++)

[Grizzums]

Funny how the investment banks had quietly put together a nice hedging instrument for protection....

http://www.forbes.com/home/opinions/...07croesus.html