# S&P downgrade Monday 8/8/11 US market poll

## What are you going to do first thing Monday 8/8/11 when the US stock market opens?

Poll closed Aug 9, 2011.

0 vote(s)
0.0%

14 vote(s)
82.4%

3 vote(s)
17.6%
1. Aug 7, 2011

### moejoe15

Is black Monday coming? What are you going to do with your stocks Monday 8/8/11?

2. Aug 7, 2011

### Greg Bernhardt

I feel anyone seriously in the stock market casino either knew this was coming for months or knew that regardless of the rating that the US was in trouble. With that said, I don't know :)

3. Aug 7, 2011

### Ivan Seeking

Staff Emeritus
No. The worst is over; at least for now.

9. Aug 7, 2011

### Staff: Mentor

Apparently the markets have expected a downgrade. There was a partial recovery on Friday. I would expect some bargain hunters on Monday, and perhaps some trading programs will kick in. If one is considering buying stock, then look over the last 5 years or so, look at the earnings per share (and ROI) and the dividends. Dividends > 3% look good compared to treasuries and savings accounts at the moment.

Also, look the Asian markets tonight as they open on Monday morning there, and then look at the EU markets before the opening of the US markets.

Expect some volatility in the near term.

10. Aug 7, 2011

### Insanity

I would tend to agree with QuantumCandy. While everyone's financial situation and goals are different, holding now and even buying more would be a wise idea.

11. Aug 7, 2011

### turbo

If you don't need to cash out in the near future (10 years or so, IMO) that's probably good advice.

12. Aug 7, 2011

### Insanity

Agreed, history performance shows that every 10 year block, almost without exception, the market goes up. The last 70 years or so, after every bear market, the following bull market goes longer and returns everything that was lost and more, sometimes many times more.

13. Aug 7, 2011

### Staff: Mentor

Last edited: Aug 7, 2011
14. Aug 7, 2011

### turbo

Double-up in 2 years? I'd like that.

15. Aug 7, 2011

### AlephZero

If you haven't taken any action already, there is no sense taking any now, because everything that is already known about the situation is already built into the price the market will open on Monday.

On the other hand, if you had the foresight to move your life savings from USD into Swss Francs a year ago, you would have doubled your money in a year, even before last weeks diversions. And that's without using any financial instruments more complicated than keeping some Swiss banknotes under your mattress.

But IMO many US residents seem to struggle the idea that anything other than a US dollar is really "money" at all

16. Aug 7, 2011

### Staff: Mentor

Also, consider the current dividend - and look a Warren Buffet's warrants.

17. Aug 7, 2011

### turbo

Yep. 3.6% is a pretty nice yield. I wish I could get half of that on my savings.

18. Aug 7, 2011

Staff Emeritus
First, whether there will be a market correction (in either direction) assumes that the downgrade was not correctly priced in to begin with. I can't believe that this was a surprise to anyone - there were explicit warnings, after all.

That said, classical economic theory says stock prices should move up in response to a debt downgrade, not down.

19. Aug 7, 2011

### mheslep

Eh? The theory being that money would flow out of debt into equities? Even so, I can imagine some counter arguments to equity prices going up.

20. Aug 7, 2011