My table saw beat the market today!

[cgallery]

The Dow was down 3.29%, my table saw depreciated much less. Proving that, tools can outperform stocks as short-term investments.

Here is my prediction for the next week: Asian markets continue to drop, US markets follow. My table saw pretty much stays put.

Feel free to make your own predictions.

[SHADOWFOX]

Corrections usually happen because of a catalyst, and this may be it. The move in China was a surprise, and when a major market has a shock it ripples through the rest of the market. With all the trade that goes on with China, there tends to be a knee-jerk reaction with that kind of drop.

If in a week or two, the psychology in the U.S. market turns to the realization that we're in a modest growth economy of 2 to 3 percent growth, that will help temper inflation pressures going forward. If that perception evolves, there's an increase in the likelihood that the Fed will be lowering rates rather than raising rates. Structurally, it's a development that should be good for the equity market, but it might be an event that unfolds after prices are lower,

However, it is "possible" the U.S. economy could slip into recession this year.

[TB Roye]

Very good analysis and explanation.

But does that mean CGallery's saw appreciates in value? (tongue in cheek)

Tom

[JR]

Corrections usually happen because of a catalyst, and this may be it. ...
However, it is "possible" the U.S. economy could slip into recession this year.

I think you're right about the catalyst. I've been looking for a buying opportunity, so I'm licking my chops.

IMO, the likelihood of a recession in the US is very low. With 5.25% to give, the Fed can really heat things up any time they wish, particularly with exchange rates weakening the dollar. I just hope we don't get a flood of money out of China into US currency instruments. A strong dollar is not our friend right now - unless you're planning that trip to Tuscany!

JR

[Knottscott]

Excellent point! (but I think my PB & J sandwich beat the market today too!)

[Ed62]

I have a bunch of tools that beat the market today. But I don't know if that's good or bad.

Ed

[ChrisD]

Here is my prediction for the next week: Asian markets continue to drop, US markets follow. My table saw pretty much stays put.

Phil, shouldn't this be in Bargain Alerts?

[billwmeyer]

If your PB&J sandwich was made with Peter Pan Peanut butter, your market just crashed.
Bill