Getting concerned about the markets... - PeachParts Mercedes-Benz Forum

Hatterasguy · #1 09-20-2008, 03:02 PM

http://money.cnn.com/2008/09/19/news/economy/what_lawmakers_heard/index.htm

Right here. If this bailout doesn't shore things up were in trouble. I usualy don't get concerned, but I'm concerned.

A264172 · #2 09-20-2008, 03:43 PM

Bailouts alone won't fix it. Once the banks are solvent they need to convince the investors that they are competent to handle their assets again. That can't be worked out over the weekend.

compress ignite · #3 09-20-2008, 04:10 PM

You ain't alone Brother!
'Most everybody with a "Horse in this Race" (AKA, Everyone on Planet Earth)
had best be concerned!
What Kills me is that none of the Guilty will be Punished!
[Imprison run amuck Capitalists? Nay,not whilst Barbara's Challenged Son rules
as Emperor(Sans brains,instead of clothes) ]

Y'all notice how the Big Three are now, in Public, pushing for a 50 Billion Dollar
Bailout of the domestic automobile industry? Aroint them!
'Best possible results:
We'll all be driving CNG fueled vehicles within the year...Both Detroit and the
Seven Sisters will fade away like the bad dream they were.

Otherwise:

I Prognosticate lotsa 'Mericans (North and South) will become intimately
familiar with antiquarian abbreviations like WPA and CCC.

It would not be all bad...the U.S.'s negative trade balance and foreign debt
would be wiped out.(Along with everything else) Mayhaps, That's the real
"Secret Plan" the Noodleheads at 1600 Pennsylvania hope to enact?

TylerH860 · #4 09-20-2008, 04:26 PM

How long have we been bailing out the airlines?

Alot of my friends are finding it extremely difficult to find jobs right out of college. Most have wound up back in the service industry getting paid the same as high school graduates.

suginami · #5 09-20-2008, 04:52 PM

I am not worried about the markets at all.

There is no better place in the world to invest your money than the U.S.

If you had money invested in stocks that you intended to use in the next 3-5 years (or less), then you were a fool to put your money in equities.

Stocks are a long term investment, and since I don't plan to use this money until retirement (20 years +), then I call this a major BUYING OPPORTUNITY.

The point is to buy low and sell high. Now is the time to buy low.

Do not put all of your money into the market all at once. Dollar Cost Average your money over time in even increments.

Investing lesson is over.

No charge to the reader.

Mistel · #6 09-20-2008, 06:03 PM

I agree with Sugi

Often times with things like this, it is when it is front page news that it usually is over already. All the smart money knew this was coming and has acted on it. When it gets to the level of the common man, it is usually over. It's like when you see a secretary flipping houses on tv and making a bundle, you know the housing bubble is about to burst.

There is a story about Joseph Kennedy. It goes that he was riding in an elevator in 1929 many months before the crash, and the elevator boy was talking about how much money he was making in the stock market. This was Kennedy's signal to get out of the market.

I think the reverse could be true here where all the bad news has been digested already and the markets are ready to move ahead.

OTOH, the ***** could hit the fan, but I would think it would happen after the election.

I mentioned in another thread that I had some Gold options, and I sold them last week because there was a pop in Gold and I don't expect it to last. If I thought TSWHTF, I would have kept them longer. I have put my money where my mouth is.

Emmerich · #7 09-20-2008, 07:15 PM

Market is up 18% in the last 5 years, 44% in last 10. Investment planners say buy and hold, looks like good advice.

suginami · #8 09-20-2008, 07:28 PM

Quote:

Originally Posted by Emmerich

Market is up 18% in the last 5 years, 44% in last 10. Investment planners say buy and hold, looks like good advice.

Amen, brother.

Besides, timing the market requires you to make two perfect decisions which require a crystal ball:

The time to sell at which the market peaks.

The time to buy back in when the market has bottomed out.

Study after study has shown that people who buy and hold do better than those who try and time the market. It even applies to Black Monday back in 1987. Those who did nothing and waited it out did better than those who sold their stock holdings and got back in at a later date.

123c · #9 09-20-2008, 08:49 PM

I am staying away from the markets. Right now I am putting the smallest amount into my 401k, just because it's not doing anything, and I can put that money into other investments that will give me a high short term yield.

suginami · #10 09-20-2008, 08:55 PM

Quote:

Originally Posted by 123c

I am staying away from the markets. Right now I am putting the smallest amount into my 401k, just because it's not doing anything, and I can put that money into other investments that will give me a high short term yield.

I'm not sure you get it.

Your 401K is for retirement. It's not a short-term investment.

It doesn't matter if it does anything right now. You are not going to use the money right now.

Putting your money into short term yield funds is counter-productive. Short term investments don't even keep up with inflation over the long term.

You need to have a disciplined approach to retirement investing.

Determine what your target asset allocation should be: the % you put in stocks, bonds, and cash.

Stick with the plan over the markets peaks and valleys, and slowly change your allocation into a more conservative position as you approach retirement.

TMAllison · #11 09-20-2008, 09:09 PM

Quote:

Originally Posted by suginami

I'm not sure you get it.

Your 401K is for retirement. It's not a short-term investment.

It doesn't matter if it does anything right now. You are not going to use the money right now.

Putting your money into short term yield funds is counter-productive. Short term investments don't even keep up with inflation over the long term.

You need to have a disciplined approach to retirement investing.

Determine what your target asset allocation should be: the % you put in stocks, bonds, and cash.

Stick with the plan over the markets peaks and valleys, and slowly change your allocation into a more conservative position as you approach retirement.

The above is good advice unless you are 60-65y/o today; otherwise keep with the plan, or if anything, accellarate your contributions.

123c · #12 09-20-2008, 09:10 PM

Quote:

Originally Posted by suginami

I'm not sure you get it.

Your 401K is for retirement. It's not a short-term investment.

I understand all that, but I am wanting to put my money into short-term investments right now...

suginami · #13 09-20-2008, 10:06 PM

Quote:

Originally Posted by 123c

I understand all that, but I am wanting to put my money into short-term investments right now...

Your reply is a testimony as to why I am happy I didn't become a financial planner.

LUVMBDiesels · #14 09-20-2008, 10:50 PM

Quote:

Originally Posted by compress ignite

You ain't alone Brother!
'Most everybody with a "Horse in this Race" (AKA, Everyone on Planet Earth)
had best be concerned!
What Kills me is that none of the Guilty will be Punished!
[Imprison run amuck Capitalists? Nay,not whilst Barbara's Challenged Son rules
as Emperor(Sans brains,instead of clothes) ]

Y'all notice how the Big Three are now, in Public, pushing for a 50 Billion Dollar
Bailout of the domestic automobile industry? Aroint them!
'Best possible results:
We'll all be driving CNG fueled vehicles within the year...Both Detroit and the
Seven Sisters will fade away like the bad dream they were.

Otherwise:

I Prognosticate lotsa 'Mericans (North and South) will become intimately
familiar with antiquarian abbreviations like WPA and CCC.

It would not be all bad...the U.S.'s negative trade balance and foreign debt
would be wiped out.(Along with everything else) Mayhaps, That's the real
"Secret Plan" the Noodleheads at 1600 Pennsylvania hope to enact?

Not helpful, not true, not worth reading...

Vronsky · #15 09-21-2008, 05:02 AM

I understand this bailout will take up to almost one Trillion USD.
I wonder where this money is going to come from, and at what price.
I can imagine that foreign investors will think twice before lending more capital, on top of the already existing gigantic deficit, and a bad economy.