KEEP DROPPIN STOCK MARKET!!!!

[billy_56081]

I for one am simply exstatic that the stock market has tanked. I Being a CONSERVATIVE know that what goes up must come down. I Yanked my money in my 401k out  and put it in fixed interest,when the Dow had hit 12000 on the way up and can't wait for it to bottom off to but in again. You fiscal Leberals are getting what you deserve.

[wareagleguy]

Billy,
You really need some financial advice....REAL BAD.

[Graybeard]

Sounds like he already knows all ya need to about making a profit in the stock market. Buy low sell high. It really is that simple. Timing is the kicker.

[wareagleguy]

I stand corrected.  I read it backwards.  I thought he just pulled his money out today.  Thanks for calling me on that.  I just though he really made a big mistake but did what I should have.

[Casull]

GB, you're too fast.  Your post went up while I was typing.   

[hillbill]

when it hits aroun 8000 im gonna invest in a few more mutual funds. the stock market has had  10 significant down turns in the last half century and 9 times out of 10 it was back to where it was inside of 2 years.

[torpedoman]

buy gold and silver right now and you'll have a lot more to put back in in 2 years.

[gypsyman]

Hillbill, hope your right. Gut feeling tells me it has a ways to go. gypsyman

[mirage1988]

Hows this for a conspiracy theory? If congress (mainly democrat) knew this was coming (like they all claim) why did it happen just before the elections? Seems too obvious too me to b a coincidence. I think ill take my 10000 have in my IRA and put it in high risk stocks on nov 3rd and sell after the dems have levered in their puppet. Ill make a killing but ill sure have a sour taste in my mouth spending money that says IN ALLAH WE TRUST.

[billy_56081]

  What I wanna know is why all these "Experts" say ride it out, up and down? What the heck. Lets say we buy 10 shares at $10 a peice. Now my shares  go up to  $15 dollars each and I sell them at a and now have $150. I put the $150 0n fixed interest for 2 years and end up with $160. Meanwhile the price of the shares goes back down to $10 apeice and I buy back in with 16 shares this time and wait for it to increase again. Now how was riding out the ups and downs a good thing?  I ended up with 16 shares while the guy who listened to the "Expert" still only has 10.


  Now I'm no "financial expert" I only have me a degree in electronics and I think am doing better than what the "Experts" with my 401K plan advised me to do. I'm glad I'm a stubborn german and didn't listen.

[myronman3]

i am in the same boat.  they say ride it out because it isnt their money.  anyone that listens to them really needs to check their head, as their advice is worth every penny you pay for it. 
   i pulled mine back in april, but i still worry about the whole system dumping and losing what i have out there if they switch to a different money system.   if it isnt in my hand, i worry about it. 
   gold and silver, i seen people get burned on that stuff as well.  i think the best a person can do now is stockpile staples and work to eliminate their debt. 

[teddy12b]

  What I wanna know is why all these "Experts" say ride it out, up and down? What the heck. Lets say we buy 10 shares at $10 a peice. Now my shares  go up to  $15 dollars each and I sell them at a and now have $150. I put the $150 0n fixed interest for 2 years and end up with $160. Meanwhile the price of the shares goes back down to $10 apeice and I buy back in with 16 shares this time and wait for it to increase again. Now how was riding out the ups and downs a good thing?  I ended up with 16 shares while the guy who listened to the "Expert" still only has 10.


  Now I'm no "financial expert" I only have me a degree in electronics and I think am doing better than what the "Experts" with my 401K plan advised me to do. I'm glad I'm a stubborn german and didn't listen.

It's a little more complicated than that when you add in the amount of taxes taken out for trades, but you seem to have gotten it correct about buy low, sell high.  I for one am planning on buying some S&W stock at less than $3 a share.  Possibly some Steel Dynamics stock too, STLD.

[Heavy C]

Billy you're right and wrong.  You were right to sell high and you are right to buy low.  The reason advisors say to stay in no matter what is because over the long haul you will come out ahead.  That of course depends on each person's time horizon.  If you were already at retirement or close to it; thenyou should have been taking more defensive positions since the 4 quarter of 2007.  For those of you that are at least 10 years or more away from retirement you need to stay the course.  You should continue to purchase on a monthly basis and take advantage of these historic lows.  There is a lot of emotion driving the current fluctuations.  When people can take a step back and take a deep breath then things will turn around.  Keep in mind that no one is going to sound a bell giving the all clear sign to jump back in.  You want to position yourself to be in place for when the market will start recovering.  The market typically will have a sector that is up.  In other words, when stocks are down; bonds would be up and vice versa.  The issue we have now is that the teeter-totter broke.  Everything is  down.  You might say well I'll take out some CD's.  You could, but with the banking sector being as unstable as it is and the FDIC not having the assets to cover a big bank failure carries almost as much risk.  Plus if your money is locked up in a CD and the market recovers you run the risk of being priced out of the market.  When I see how downgraded solid companies such as GE and others are it confirms that there is a lot of emotion out there.  Look for the values in companies that manufacture the staples of our economy.  In other words food (General Mills), health & beauty (Proctor & Gamble).  No matter what happens, there are things that we as Americans will continue to buy because we continue to live our lives.

At this point the Feds need to keep their advice in mind and be patient.  Give the stuff they have put in place time to work itself out.  The market will correct itself.  It is doing that with oil and gasoline.

'Bull markets are born in pessimism; grow in optimism, and die in euphoria.'
- Sir John Templeton

Hang in there folks.  This too shall pass.

Heavy C

[hillbill]

as far as the market goes, im staying, what else can yu do at this point.i have plenty of cash on hand and plenty of guns and ammo. ive lived off the land a few years when i was poor. have been dooin it lately, why stop now?

[hillbill]

thought, seems easy for us out here in the borderlands where food abounds and we have the land to kill it on, what yuall in the city that think like us but aint got the chance to live like us gonna do?

[billy_56081]

Nope, not pulled out as I wrote, I went from risky stock market indexes to low risk fixed interest.  Soon I will go back to some stock market indexes and rige th market back up to a point then move it back to the fixed interest account and wait for the next drop. Buy Low and sell high.

Now Heavy C I cannot see the logic of riding it up and down either in long term or short term. Now my money is way way ahead of where it would be if I left it in the higher risk funds and I will be returning it to the riskier funds very soon to talke advantage of the market recovery. MY money is not locked up, I can move it at any time.

[Heavy C]

You missed a couple of my points.  If you are investing long term you should leave it in and continue to invest on a monthly basis.  This is called dollar cost averaging.  The way you come out ahead is when the market does recover you now have all of those shares you bought cheap.  Therefore your portfolio goes up in value sometimes exponentially.

The money being locked up was if you decided to move your money into a CD.  If you are investing in money markets and such; then you are correct that it is still liquid and you make moves as you see fit.

[myronman3]

there is nothing wrong with good timing.  i am sure there are lots of folks out there that wished they had done the same 5 months ago.   i will be sitting on the sidelines awhile as i think we are in for a rough ride.

[Heavy C]

So then you know exactly when we will finally hit the bottom and when we will recover.

It's not timing of the market that makes you rich; it's time in the market.

[myronman3]

So then you know exactly when we will finally hit the bottom and when we will recover.

never said or implied that.  all i said is i have decided to keep my money in reserve right now.

It's not timing of the market that makes you rich; it's time in the market.

  do what you want with you money, and i will manage mine the way i see fit. 

[myronman3]

 i fail to see how losing a huge amount in the market is EVER a good thing.   unlike billy, i am not happy the market is dropping.  i do not think it is funny because i know people are getting hurt.  everyday, honest, good people.  that is nothing to celebrate.   however, i am glad i didnt get clipped by the recent downturn and from what i am seeing, it is going to continue.  so far my judgement has been right on the money; hopefully i can keep that going.

[Heavy C]

It's not timing of the market that makes you rich; it's time in the market.

  do what you want with you money, and i will manage mine the way i see fit. 

Knock yourself out.