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I wonder how many people that were fully invested and saving to buy a house, lost a lot of their wealth (their downpayment)today with the tanking stock market?
I watched it on my computer and luckily was not fully invested. I wonder about those who were though -- especially if they quickly tried to close out of their positions.
Will the real estate market will take a hit as a result of today...especially because it was announced that the debt crisis in Greece will spread here soon?
What do you all think?
If you have a need for a large amount of cash in the short term you have no business having that money in the stock market. Our down payment money is in the BANK.
It wasn't limited to penny stocks. Some that were $40 per share dropped to a penny. Of course they rebounded some but not anywhere close to all of their losses.
As I've already posted, here is a chart of the S & P 500. Note that we dropped to the low of the low of February today (105) from 117---a 12 point drop...more than 10% in a day.
Not that this post had a lot of merit to it, but it has even less if you actually look at a chart of the dow.
We closed today at pretty much the same level as we did on April 7th. And from before April 7th we are higher today than we have been at any point since about October 6th, 2008.
What are you talking about? What are your sources?
If you'd like to see what has happend over just the past week, look at this chart.:
While the equity market may have glitched, the 10 year treasury, which is a key rate in mortgage pricing, dropped to 3.4% which is good news for homebuyers.
Apparently a misreported price for Proctor and Gamble was able to drop the dow 172 points all by itself, which triggered all sorts of computer model trading programs. Once the error was reported, the dow magically regained 600 points.
Hopefully we hit the bottom but now there is even more support at the low point of where we hit. It could mean that we revisit/test those lows before we head back up.
I wonder how many people that were fully invested and saving to buy a house, lost a lot of their wealth (their downpayment)today with the tanking stock market?
I watched it on my computer and luckily was not fully invested. I wonder about those who were though -- especially if they quickly tried to close out of their positions.
Will the real estate market will take a hit as a result of today...especially because it was announced that the debt crisis in Greece will spread here soon?
What do you all think?
I think that there are so many erroneous assumptions in your post that I don't know where to begin.
1. "Fully invested" does not mean 100% in the Dow or even the S&P 500.
2. People saving to buy a house do not put 100% of their savings in the stock market. In fact, I think that it is much more liikely that such people would have zero in the market as opposed to 100%.
3. The market dropped 3.2% today and is still 7% higher than it was just three months ago. Ergo, no one has "lost a lot of their wealth" as a result of today's action.
4. Finally, it has not been "announced" that the debt crisis in Greece will spread here soon. Sure, there are some people who believe that. Just as there are some who believe hyper-inflation is in our future. But there certainly has been no proclamation to that effect or even a general consensus that such is the case.
Well if a 3.5% downpayment is now the norm, then I don't think it will have any impact. Now if the government would just stop subsizing housing one way or another, then a day like yesterday would have the potential to wreck a lot of RE deals.....
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