Dow down 500. Bad news for us?

Question

So, I know all of us planning to invest $150k in business school next year hope that the economy will stay strong for a few years while we look for jobs. Huge correction on Wall St. today because of data suggesting a slowdown in the economy. Also, especially bad for someone like me, the Shanghai index slid 9% after setting a new high the day before. It sure feels like capitulation. Maybe there's time in the next 6 months to set a new bottom starting a new positive trend.

(edited for new low)

gmatclb · Answer

The US market is down across the board.... probably because of the asian markets.

Even if the market is bad when we try to get jobs, in the long run, it won't matter.

rhyme · Answer

Yea I'm feeling today's market.

Down $4,412.42 as of 1pm EST.

willget800 · Answer

well i bought a few stocks today.. i wanted to buy a few for a while.. waited for this down time.. i dont think this will last

Praetorian · Answer

Greenspan speaks. Markets Rumble.

https://newsblogs.chicagotribune.com/new ... reces.html

Article from the WSJ...

Greenspan Warns of Possible Recession
February 26, 2007
Former U.S. Federal Reserve Chairman Alan Greenspan said Monday that the U.S. budget deficit remains a "significant concern" and warned the American economy might slip into recession by the end of the year.
"The American budget deficit is clearly a very significant concern for all of us that are trying to evaluate both the American economy's immediate future and that of the rest of the world," he said.

lhotseface · Answer

I am also down around 5K today. I am not too concerned if the market enters a period of correction as I don't believe in timing the market. I predict that the job market won't be hot in 2009. Caveat emptor.

willget800 · Answer

lhoteseface,

why you say that? man............are we guys not possibly graduating in 2009?

fluffydot · Answer

I'm feeling the hurt too :cry:

how am i gonna have rent money for fall?? I need money for parking and bus passes too! damn u!

rhyme · Answer

Make that down

- $6,284.72 


Lost $2,000 in two hours. LOL....

Mark4124 · Answer

I wouldn't worry about it. Be happy that you applied before the market dropped. B-school apps always increase when Wall St is facing hard times. And just think that a correction could happen at any time... better now before we go then closer to your exit when you are looking for jobs. Also if the market drops and we face a slowing economy or one that is headed towards recession... the fed will invaribly reduce interest rates (good for student loans) and the economy will begin to rebound. I think there are other indicators here that will keep any protracted recession at bay. Interest rates are relatively high in recent years so there is plenty of room for improvement there. Corporate balance sheets are pretty awash in cash, so I don't think that you are going to see any desperate times for most industries (with the possible exception of flailing American auto industry that is already in a load of trouble). So corporate earnings growth is tapped out for a bit and the markets are not going to be increasing exponentiallly forever... it happens. Corrections are normal. Again, if it is a longer term correction... better to be applying this year than next.

typicalgmatter · Answer

Call the close...

I'll go with -283

lhotseface · Answer

Yes, that's why I requested the buyer to be aware of what one may encounter in 2009. It is likely that the economy will be in recession or recovering from one when we graduate. Personally, I would recommend people to get an MBA whenever they are ready and not base their decision on market fluctuations.

willget800

lhoteseface,

why you say that? man............are we guys not possibly graduating in 2009?

Mark4124 · Answer

I think we need to see how deep a correction this is and how the Fed reacts. If the Fed reacts strongly you won't need to be throwing the baby out with the bath water.

Mark4124 · Answer

Too bad we all didn't own a ton of Fidelity Nordic... Looks like Norway's exchange is just about the only one up in the world.

typicalgmatter · Answer

BLOOD red right now.

lhotseface · Answer

CNBC alert - Dow Jones Industrial Average Plummets More Than 500 Points.

Mark4124 · Answer

Turn on CNN for a minute... much more tempered coverage than CNBC. According to CNN many money managers are looking at this as a buy opporunity.

rhyme · Answer

- $6,786.97 so far now

Dangit. Opportunity to sell !

c00624 · Answer

I'm feeling the pain as well today. 

I have a question: I have heard people say that mba apps are up when the economy is up (increase in salaries and job offers) and that mba apps are up when the economy is down (poor economy motivates people to further education/ pursue better job). Which is true or, if both are, which has a bigger effect?

pelihu · Answer

I agree with Mark, if this sell-off is in fact a capitulation, maybe the market has established a new low, which could set the stage for another sustained run-up. Personally, I think that the market might have some more downside before hitting bottom, but it's necessarily bad if we're looking 2 years down the road.

Dow down 500. Bad news for us?

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