Remember when Alan Greenspan first accused the market of “irrational exuberance”? In his blog The Big Picture, Barry Ritholtz reminds us: It was December 1996 and the S&P500 stood at 744.38. Today, the index blew through that number to land at 700; the Dow is only a few hundred points away from where it stood back then.
On and off throughout the day, I checked into StockTwits and Twitter to take measure of reactions to the Dow breaking through 7000, a first in nearly 12 years. Oil plunged 10% and Treasurys (those “safe” investments) rallied. Some wondered if today’s market devastation signalled a bottom (yet again?) while others seemed to be stunned at the barrage of bad news: AIG announced that it had managed to lose a record-shattering $61 billion in the fourth quarter. In response, AIG’s sugar daddy, aka Uncle Sam, offered another $30 billion to fill in some of that hole. Good news was summarily dismissed: consumer spending, reported up 0.4% in January, the first advance in seven months, was simply viewed as statistical white noise, the WSJ reported.
Below, I present some of the thoughts exchanged on Twitter and StockTwits. I think it gives pretty good sense of how the day felt.
from the LOW of 1929 (195.35) the dow lost 79% of its value before it reached its ultimate low of 40.56 in 1932 (alphatrends)
I should have guessed it’d be $AIG getting me my DOW 6k print. Wonder if betting it all in ultrashort ETFs will cover my portion of the $30B (brycebaril)
only 3 stocks making 52 week highs today (kunal00)