Live Chat: Opportunity Amid a Wild Market

This week has been one for the record books. Monday was the sixth largest point drop in Dow Jones history. Tuesday was the 10th largest point gain in its history. In percentage terms, both rank in the top 100 craziest days the market has ever seen.

These wild days hammer home two points. First, you can't time the market. Those who sought safety by selling during Monday's free fall missed one of the largest rebounds ever on Tuesday.

Second, huge daily movements often make little sense. American businesses did not lose 5% of their fundamental worth on Monday, only to become 4% more valuable on Tuesday. What changed is the price.

And as Warren Buffett says, "Price is what you pay. Value is what you get." Roller-coaster markets might be gut-wrenching, but they can be a gift for those looking for bargains. We have no idea how much further markets might fall. But we are convinced that the plunge over the past two weeks has created opportunities for long-term investors.

From now until 5 p.m. EST, Motley Fool columnists, analysts, and advisors will be hosting a live chat. Please join us below. Ask a question, answer someone else's, pitch an idea, or just see how the Foolish community feels about their investments. We're expecting a large volume of comments and can't answer them all, so don't be discouraged if yours isn't addressed. See you there!



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23 Comments

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reelnautiwilm

I hate to say what I've thought for 21/2 years. It is not going to get better for some time, it will get worse. I, myself, am holding tight to my dollar (although everyday it becomes less & less in value), until we get a president in office that has a clue about the American peoples welfare instead of their own well being!!!

August 10 2011 at 6:53 PM Report abuse rate up rate down Reply
oldmanbeavers

I guess I'm really not to bright , because I am unable to figure out why the Board and Officers of S&P would cause an action that would affect not only the entire worlds fragile stability, and would,also cause S&P's own value to fall , losing some where around 11% of thier value at this point? is not that like cutting off your nose to spite your face ?, and do not the stock holders of S&P hold the board and officers accountable for these seemingly irresponsible acts?
If someone would please answer these questions in a manner that makes sense, please do so for me.

August 10 2011 at 6:26 PM Report abuse +1 rate up rate down Reply
1 reply to oldmanbeavers's comment
BRUCE

I thought it smelled fishy when they issued the down grade on Monday after the market tanked on Friday! If they knew they were going to do the down grade, why not on Friday or before? They just threw gasoline on the fire. S&P is for all practical purposes a part of the financial sector and has contributed to our nation's economic mess. They have no creditablity.

August 10 2011 at 8:44 PM Report abuse +1 rate up rate down Reply
ADRIAN

I agree with BRUCE - a tax on high frequency trading/day trading would help stabalize the market or at the very least give the government some revenue. Existing capital gains taxation is not enough for these traders,

August 10 2011 at 4:35 PM Report abuse +1 rate up rate down Reply
1 reply to ADRIAN's comment
BRUCE

I did send this suggestion to my representatives in congress. The idea needs to be circulated and considered. Too much money is being made by professional traders that have access to proprietary types of computer platform trading. Buying and selling equities etc. has become a casino operation hedged to the benefit of these professionals. All gain to them..pain to us!

August 10 2011 at 5:35 PM Report abuse +1 rate up rate down Reply
tbc

I would love to have the old ticker page back....it was so much easier to navigate and allowed me to enter into the message boards! If there is any way to get me back to the old ticker page......please do it....or else find a way for me to enter the message boards.

August 10 2011 at 3:55 PM Report abuse +2 rate up rate down Reply
1 reply to tbc's comment
BRUCE

I tried sending feedback to them on this issue and have not received a response. It probably went to India for analysis.

August 10 2011 at 4:04 PM Report abuse +1 rate up rate down Reply
wstax

This is just the beginning of a long slide and economic mess--------------the result of many years of huge spending on political projects and programs-------------we need to keep an eye on Europe-------------the European markets are tanking------------countries are bankrupt ---we are in for a BIG DEPRESSION not a recession
Do not invest in anything---------

August 10 2011 at 3:48 PM Report abuse -1 rate up rate down Reply
Haold

Where will Dow jones be on 12/31/ 11? Your best guess

August 10 2011 at 2:09 PM Report abuse rate up rate down Reply
BRUCE

A transaction tax needs to be imposed on computer high frequency trading which causes the market volatility and huge profits for professional traders. They drove the market up yesterday and sold it off today for huge profits. The average investor holds for the long term and watches the daily casino profits of Wall Street, CME, CBOE etc.

August 10 2011 at 1:43 PM Report abuse +2 rate up rate down Reply
sllukomski

Where is the old Daily Finance - it was so excellent! We had it all - I miss it so much!

August 10 2011 at 1:40 PM Report abuse +2 rate up rate down Reply
ccpets

Notice the down days are always larger than the up days. The markets have a unique way of finding bottom. If we think we can correct all the sins of the past overnight cut all the social programs and benefits all at once Londons current riots are mild. Start just one good intention rally march or protest and see how fast it gets nasty.

August 10 2011 at 1:28 PM Report abuse rate up rate down Reply
attendauction

The only way out of a totoal depression is to make the national debt a personal debt and finance it at 0 percent interest. Take the control out of the hands of bankers and make our government in charge again by eliminating the federal reserve as it now exists. The wealthy few now are stealing the money and creating havoc to cause another depression before personal debt can be used to eliminate their rule over us. The New world Order Is very good for us if we can defeat capitalisum and communisum. Both systems actually enslave people. As we see they use the media to lie to us, but just maybe this one post may set us on the right path.

August 10 2011 at 1:27 PM Report abuse -2 rate up rate down Reply