Bloodbath in worldwide stock market?? Would you catch the falling knife? China market down 9%. S&P 500 down now 4%. Recession? Market Correction? Wild swing in market. Buying PUT option is a safe heaven!!!

Other triggering events for the market selloff could be

- Possibility of an attach in Iran
- Greenspan speaking about downturn of US economy few days ago in a conference in HongKong
- Assaination attempt of VP Cheny in Afganistan

The last time I saw market falling like this way before Iraq war and after 9/11

Looks like a bear market ....

Bhunte - Possible but too early to tell. Not a very rosy week. Value stocks and funds still holding ground - or not sliding as much - but fund managers may need to shuffle things around a bit if the trend continues. Let's hope for a short-lived market correction.

Have a good weekend.

what to do with 401?

Bhunte, the DJI dropped 4% over the past 4 days...that is after it made 15% over the last 8 mos..unless I see a drop 10% or more, just like stks, this is not a predictor of things to come. Yes Greenspan, China and other factors impact, but none of them strong enough for a recession/bear market you are fearing.
bideshi, hang tight..give the market some time to rebound...and if it does not, I am sure you are oung enough to recover when it eventually does.
peace.

Jhyalincha, 4% is a small drop compared to one day drop of 22% in 1987. Who knows stock market may crash like in 1929 recession where it lost 89%. The market can remain irrational for long. Regardless it seems like the onset of a bear market, market correction is an investment opportunity. But, i wonder why won't S&P500 test for lower 1300s before running up again!! If it fails to hold lower 1300s, expect another slide of about 200 points for the remainder year.

Us little guys gotta follow the big boys...huge sell offs in record volume going on after an upbeat market for the past few years. if you hold anything that's given you a nice chunk of return, sell it and lock your profit (this is not the time to be greedy) and then stay on the sidelines and watch for at least 2 -3 more weeks before you think about jumping back in. or if your stocks haven't yet matured and you are not in a position to sell it, don't panic and try to ride out the strom. so for your long term investment, this correction is healthy for the market so no need to worry. keep an eye out for great deals on value stocks but don't jump into buying it untill it's on its way up...much better that way than buying when you thought it had bottom when it goes down a few more points....at least this is the strategy i'm playing by....i think we'll all be better off in 2 -3 months from now than we were 2-3 months ago.

don't be bothered about 401K or mutual funds...you're gonna be fine with that unless we have a total market crash...which aint happening.

bhunte; good luck with your options. i've never done them before but finally feel like i know enough to try them but just don't feel comfortable in trying right now. so, for others like me it might look like the way to make money even on a down market but i'd really think twice about it..same with going short.

p.s. last but not the least don't be hatin on them china stocks!!

What do u think of European funds right now?Most of my money is in European fund and small caps?

bideshi,
are you betting against $$?

Notice the FX market. Value of EURO has been decreasing, which decreases the value of your European fund too.

Previous post is confusing and should be other way. Check the dollar index in the link and decide.

-http://quotes.ino.com/chart/?s=NYBOT_DX&v=dmax

Euro has appreciated much against Dollar or you pay more $ for Euro.

NEW YORK (MarketWatch) -- U.S. stocks sank on Tuesday, causing the Dow Jones Industrial Average to give up 242 points, as the rising tide of problems in the subprime mortgage market spurred fear of contagion across the whole financial sector, while weaker-than-expected retail sales confirmed a slowing economic outlook.