Market closes near to where it should be

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krogoth's picture
krogoth
Status: Platinum Member (Offline)
Joined: Aug 18 2008
Posts: 576
Market closes near to where it should be

Finally, we are more where we need to be in the market. It bugged me how we were rising on some days over the last 2 weeks. With consumer spending about to be possibly the lowest of all time for this holiday season, the Big 3 issues, and a rate cut, we will easily be between 5000-6000 range in December. Any lower and I predict we are headed for a market collapse. A large daily drop in the 500-900 range can trigger a mass sell-off.

 

Check your portfolios, it's about to get quite bumpy

 

 

 

KenMez's picture
KenMez
Status: Member (Offline)
Joined: Sep 24 2008
Posts: 5
Re: Market closes near to where it should be

So, where is the bottom? Is it at the old money level, before the irresponsible speculators drove the market to unsustainable levels? Is it zero? Where the Rothschilds would finally have their dream of world domination? The more I learn, the more enraged I become at my ignorance. I can't believe that I entrusted my retirement to individuals who have less knowledge of investing than I do. When I took a majority of my money out of the market funds and put it into a guaranteed savings fund last year, I was told that I was locking in my losses, and that I could never time the market to make a better return than what was being offered (-18%). Thankfully I resisted the urge to believe them, and stuck to my plan. They must brainwash all the employees of these 401ks to utter the same line, "Over the long term, consistant investing is always better than moving your money around." All I know is ideology like that can lead to class action lawsuits for bad advice.I will be giving out Chris' DVD's to everyone that wants them, and force them onto those who don't. And where are the T-shirts? A chrismartensen.com T-shirt will brighten up the holidays for those lucky enough to get one.

Doug's picture
Doug
Status: Diamond Member (Offline)
Joined: Oct 1 2008
Posts: 3125
Re: Market closes near to where it should be

Kenmez

I'm with you.  Last Jan. when the market took it's first big dip, my retirement fund dropped about 6-7% I put it all in gov't securities.  Since then the fund is back to about where it was before the drop, including my continued contributions.  The question I have now is what to do with it.  I'm a Federal employee and the money is in the "thrift savings plan."  In that plan there are a number of funds and balances of those funds.  The problem is that my choices are limited to growth, income, small cap and international stocks; gov't securities and fixed income funds.  There is no option that would allow, for instance, pm's or specific securities.  Anybody have any ideas what to do with it now?

krogoth's picture
krogoth
Status: Platinum Member (Offline)
Joined: Aug 18 2008
Posts: 576
No easy answers

Guys and gals,

Really no east answers for retirement funds, IRA's etc. I think they will get the worst end of all of this. Nothing can be more important than handling your own finances. It's the most important thing to learn if you are going to do it, and putting it into a brokers hands, or part of the machine is a serious mistake. So where do you put it, that's the question?

Savings? A joke and no interest, plus a declining dollar can kill you. Stock Market, yes and no. Yes because the opportunities are great right now if you do your due diligence strictly, and no because conditions exist that I, as a private investor for 15 plus years have never seen and are not for the faint of heart. Gold and Silver, maybe partially, but talk to the Gold and Silver crowd here for guidance, it's not my speciality and I am just converting partially to it to diversify right now. Foreign banks? A good choice, but make sure you pick the right country. You may not get a huge return, but with the exception of total global banking failure, you should not lose any money. But now your talking dollar trading, which is an art in itself. I always say diversification on many levels is a safe bet because you can lose, but you won't lose it all. Too many people are suffering from eggs in 1 or 2 baskets syndrome, and it's starting to hurt a lot of people on a large scale.

 

 

 

 

 

rlee's picture
rlee
Status: Silver Member (Offline)
Joined: Sep 18 2008
Posts: 148
Re: Market closes near to where it should be

And here lies an even bigger issue - I will be the very first in line as one who has been spanked by all this mess, to tell all who will listen: "Handle your own money"!  BUT - there are very few people who have the time, energy, or just plain skill to do this.  I know that the argument to be made is tough S&^% for those guys - but personally, I have only begun to educate myself, and I am very aware of my lack of knowledge and how far I have to go.  I am however, making it a point to learn what I can, and seek the best advice that I can.  To an experienced investor, where to put your money can be a challenging question - forget the regular guy.

So, yes, handle it yourself, don't look to only one avenue of investment, and don't ever take your eyes off of any of it!

BTW Doug, 6-7%?  Consider yourself one of the luckiest people I have ever met!  Try 70%. 

Doug's picture
Doug
Status: Diamond Member (Offline)
Joined: Oct 1 2008
Posts: 3125
Re: Market closes near to where it should be

rlee

That's my retirement account.  I had it pretty well diversified and sold anything in stocks during the first drop in January.  OTOH, my other accounts I wasn't so diligent about.  I figured them out today and I'm over 50% down. :^(

Woodman's picture
Woodman
Status: Diamond Member (Offline)
Joined: Sep 26 2008
Posts: 1028
Re: Market closes near to where it should be

Doug,

I had money in the Thrift Savings Plan also, from former days as a DOD employee.  Fortunately most of it was in the gov securities fund.  You did well to get out of the stock funds way back.  I recently rolled mine over to an IRA where I could have a lot more options and faster control.  Not sure you can do that though until you separate from the government. 

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