johnnymk

I was talking to a friend of mine this morning about the stock market. He was telling me that you really don't lose any money in the market until you sell your stocks(at the lower price than what you paid for them). He said when the recovery comes, then you can sell them.

So I asked him why the market will rebound. He said it always does. I said that's not a good enough reason.

I told him about the phony dotcom boom and bust of the nineties and the phony real estate boom of this century and that didn't indicate a thing to his argument.

I also stated that we have lost approx. 9% of our manufacturing sector in the past twenty years. It's down to approx. 11%.

I also mentioned that 40% of the population don't pay income taxes, that many people feel entitled and wouldn't lift a finger even if they had to. This is one of the reasons for illegal immigrants working in jobs which the average American refuses to perform.

In addition, the stimulus packages are going to bear down on the economy for years, possibly even a decade.

And forget alternative energy projects. They will amount to a handful of jobs. I guarantee that any of the hardware which goes into the solar field will be made overseas. But if they are made here, it will be insignificant in the number of created jobs.

Plus we have a socialist president and a Fed which are guaranteeing that the free markets will not take care of itself in the long run. They are just prolonging the agony.

So I am asking: what are the ingredients which I am not aware of for a strong recovery in this country? I am all ears.

zippyjuan

The stock market probably will eventually return to the levels it once was- the question is how long will it take to do so. The peak of the 1920s was not attained again until the 1950s. From roughly 1965- 1983 it (the Dow Jones Average I am looking at here) really did not move around that much. http://finance.yahoo.com/q/bc?s=%5ED...=on&z=m&q=l&c=

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whitealexander

we can recover its how humans work.. we adapt and then we progress.. and the question is "when are we going to recover?" like zippy says...

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Jeffbx

Of course it will recover - the market is very cyclical. But as to how long it will take? No one will know until it happens.

Business sectors will shift - they always have. If you look at individual companies, some will recover & some will not - manufacturing will be particularly difficult. However, looking at the market overall, it'll get back up there eventually. Other companies will step in where some fail, and who knows what new industries may pop up in the next 20 years.

brainsmile

There is much turmoil ahead and the recent news about bank stocks being better than expected is a bit of accounting slight of hand. I think the market goes down a bit and we are choppy for a while to come jmk

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VTGreg

It will take a while to figure out exactly where any of the financial institutions stand due to the change in accounting. It is amazing how quickly sentiment changes. Last week earnings were better than expected on numerous fronts and the market had little reaction after the substantial rally of the past month. Now there is some weakness in the earnings and some jitters around the forward guidance and we get a major sell off.

It will probably be a bit of a roller coaster ride through at least the end of 2009.

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