Economy

Nope, I think we've found the bottom and it's going to recover. Then again, my father used to tell me never to take investment advice from somebody that's still working so I wouldn't pay much attention to my prediction. :)
 
I think it will come back. I still have ALL my 401K and some savings in the market but I plan on working 20-25 more years. If it doesnt come back we will have much bigger problems than just savings and 401Ks droping like rocks.
 
I think the stock market still has more to lose. I believe we are entering the worst recession/depression since the great depression. The economy will most likely take many years to recover. What we are living through right now will be discussed in classrooms 75 yrs from now.
 
A person can think of the 401's this way. We're buying at a bargain! Back when the market dipped last time in 2001, the 401K thing was pretty new here where I work. I freaked everybody out when I maxed out my contributions towards high risk markets while everyone else pulled out into secure bonds. Then when the markets rebound, I popped out on top of the league with more money than the owners and principals of the company racking in a 41% advance for the total year.
But on second thought in the latest decline, I've lost enough this year to have bought 75% of the house I just moved into. But again, I have yet to pull out of my so-far-so-good risky stocks.
Before the latest decline, I was still the top dog but back to topic, if the market totally crashes my total loss would be around $180,000. So far I've lost 50% from my all time high.
The Principals who WERE looking at retirement in the next couple of years have some low chins around here right now. I'm 36 now and I guess thoughts of early retirement is now out of the question...
 
Creative destruction at its finest. Stop looking at a 5 year graph of the market and look at a 50 or 100 year graph. Overall there is an increase and always will be because economic capitialism is THE best distributor of resources that generate profits. Now if you are 60+ it sucks but you should kick the shit out of the advisor that had you more than 70-75% in stocks rather than bonds anyway. If that advisor is the mirror you need to rethink the way you do things.
 
Everyone needs to remeber that unless you sell your stock right now you have lost nothing but on paper. You do not take a loss until the order to sell is placed. So sit tight and let it come back.
 
snappy said:
Everyone needs to remeber that unless you sell your stock right now you have lost nothing but on paper. You do not take a loss until the order to sell is placed. So sit tight and let it come back.
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Bingo...

In the past 40 years, we have seen large dips (i think defined as 15% or more of the DJIA drop in 36 hours or less)10 times. ALL 10 the market has responded with a 25%+ increase in the 12 months immediately following the true bottom. 9 out of 10 the market had recovered 100% of its loss in 18 months, thee 10th time took 21 months.

Is this big?
Yes
Is it catastrophic?
No

Think about what a stock is. It is ownership (albeit a small part) in a company. An American company. Can anyone honestly tell me they expect Coca-Cola, McDonalds, ALCOA, Home Depot, Cummins, Caterpillar, etc. to be worthless in the foreseeable future? So worthless some one would give you the company?
Didnt think so.
 
Another perspective to consider:
When's the last time a financial downturn went Global? This could be the blow to put us back to Start... Big companies could falter to the little companies due to so much baggage? Currencies could possibly loose all value to new regional currencies that become worth more due to the dollar loosing so much value? When a commodity such as corn, grain or even cigarrettes become worth way more than the dollar amount it costs to buy them with then something's got to give. The possibilities are there for this to be a MAJOR shakeup in the WORLD for a whole different system to emerge. Regardless, I compare the financial markets of the world to nature in the fact that it will take care of itself. But change is indeed definate!
The gambles of holding onto stocks can be a major gamble that the market doesn't completely collapse with different markets / systems emerging to take over. China is one of the few that has markets remaining untouched by this down turn and they own more of our deficit loanage than any other. And buying like crazy! They could possibly step in and devouer our market completely and develop their OWN system with us in turn being forced to sell off and take our losses with exchange for the different currency.
I think the gamble on the dollar is more of a gamble this time. We've gone so far that it's bang or bust indeed. If bang, it could be 5 or even 10 years before it happens. If bust, it could take place by as early as next year. Markets are at record lows and still plummeting as I type with no end in sight. If confidence isn't met soon, our markets could be doomed.
 
6BangBronk said:
China is one of the few that has markets remaining untouched by this down turn and they own more of our deficit loanage than any other. And buying like crazy! .
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Shanghai Index dropped 10.5% in the last session
 
Yep, before getting thrashed any worse, I stand corrected - China is more affected than WE are...

But still, SOMEONE could come in and take us over? Change IS definate!

Could we see 8,000's by the end of the day from the DOW?
 
snappy said:
Everyone needs to remeber that unless you sell your stock right now you have lost nothing but on paper.
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I aint no where near jumping out of the market but I always like to point out that $100 bills are also "just on paper"
 
I dont look for any real stability in the market untl after the election. Not picking sides or saying who I'm for but when you know whos in power you have a better idea of what will happen in the economy. People always fear change and fear drives people and the market.
 
I am SERIOUSLY considering bumping up all my retirement contributions right now (instead of waiting till 1/1 like normal)

There is only ONE thing that could seriously effect the markets on a long term basis and that would be a large scale depopulation of the planet due to a superbug, (nuke war, etc)

Otherwise, people are STILL going to keep buying stuff (2% increase in sales at Walmart shows WHERE they are going to shop during the down times)

People are still people...the folks that do not sell will see all of their losses returned (and more as stated above, 15% loss = 25% gain historically) and those that invest while they are paying 25-75 cents on the $1...

So I am not changing a single line on my allocation of stock purchases (not changing to "safer") and may throw in another 5%

My only "worry" at the moment is if the folks in Florida have learned how to punch thru their voting cards yet and we can get this election FINISHED on time this year. (Otherwise the market will still be playing upsies downsies until it is resolved)

I imagine the graphs will show an upward trend starting this Q4 / after election.
 
There's only one way to place our bets, and that's that the USA will REDEEM OUR STATUS AS DOMINANT IN THIS WORLD and PUNCH OUR WAY TO THE TOP OF THE GLOBAL MARKETS ONCE AGAIN WITH MULTIPLIED RETURNS FOR ALL WHO INVEST! WOOO HOOO!!!:beer::beer::beer:

I've lost enough in my 401K that I'd be a fool to turn back now considering my age. Just wished I'd sold a year ago and bought back today.:shaking:
 
Some of you may disagree but I would put every dime I had into BOFA and GE stock. Both are positioned globally to take advantage any smidgen of a recovery and could go through the roof long term. Hell GE guarentees their dividend through 09.

If you are contributing every week you are using dollar cost averaging to increase your total # of shares owned. Quantity of shares in quality companies is the best way to maxamize returns.
 
Franklin said:
Some of you may disagree but I would put every dime I had into BOFA and GE stock. Both are positioned globally to take advantage any smidgen of a recovery and could go through the roof long term. Hell GE guarentees their dividend through 09.
If you are contributing every week you are using dollar cost averaging to increase your total # of shares owned. Quantity of shares in quality companies is the best way to maxamize returns.
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FWIW It have moved 5 figure sums twice this week into the market.

Not in any single stock but in well positioned mutual funds
 
No one dies on a roller coaster unless they jump off.

I dont need my 401k money for decades though so that might alter my strategy.
 
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