That's it. I've had it with themarket.

[NogginBoink]

Originally posted by: FettsBabe
I'm putting in $120 dollars every pay period and I'm losing $1000 every 4 months. I'm really considering putting it in a mutual fund. The point is you are not buying low when you are losing what you contribute every 4 months.

If you believe the market will recover, sure you are. It's called dollar cost averaging.

Those who bought Yahoo at $300 and are selling now just don't get it. I personally believe the market will sink some more, but am continuing to put money in. Over the long term, I believe I'll come out way ahead. I don't have the skills to time the market, so I'm going for the slow and steady course over a 30 year time horizon.

 

[BooneRebel]

Originally posted by: FettsBabe
I understand your position, but I'm not holding stock certificates. This is the 401-k options which are bought and sold by agents of MI Trust.

While I am losing my net value on paper it is almost equal to what I contributed, so I see it as burning the money I set aside to buy.

Yes, I accumulate more shares, but the value is going down. Chances are I will shift my stock percentages again when I think the market has hit the bottom of the barrell because that is the best time to buy because it usually has no where to go but up (we could only pray!). Once I do that I'm still buying low and selling high. I also will have been accumulating a 5% return on 60% of the money I put in the fund, so instead of breaking even with my contributions during this time period I will actually have a 5% return (or close to it) to also buy stocks with when they are low.

It's the same principle, whether you are talking about stock certificates, mutual fund units, or pork bellies. You can't time the 'bottom of the barrel' (and only a fool or a liar will tell you that they can). Right now you say that you're getting a 5% return on bonds, which is better than nothing (or a negative return) on stocks/funds. However, buying stocks/funds now gives you a better opportunity for a greater return when the market moves back up. If you look at the cyclical nature of the economy, investors that keep their money 'in play' constantly make more than those who try to 'time the markets'.

And RH71, I'd say that stock brokers, while making a few duckies off of advice, make far more money off of commissions. It's like being a bookie. They don't care if you win or lose, as long as they get a percentage of what you're spending.

 

[stockjock]

Here is what I show my clients when they ask this very question Dow Chart. Then I ask them to pick the places on the chart where they should've invested... Just about all of them pick the spots where the dips are...ie...1932, 1942, 1962, 1971, 1973, etc. etc... I think you know where I'm going with this...

 

[OutHouse]

My company is private so no company stock options but they do employer match, not very much though. Our 401K is through MetLife and every one of their 401K funds are deep in the red. I contribute to 5 different funds that MetLife offers and I have bought a lot of shares because their funds took a nose dive, thats the name of the game right?

 

[BooneRebel]

Originally posted by: Citrix
My company is private so no company stock options but they do employer match, not very much though. Our 401K is through MetLife and every one of their 401K funds are deep in the red. I contribute to 5 different funds that MetLife offers and I have bought a lot of shares because their funds took a nose dive, thats the name of the game right?

If you're planning to retire in the next five years, take a less risky investment. But in the long run, yes. If you're in it for the long haul this is the best plan. You have to ask yourself: Do you see the economy rebounding? You've got two options; 1. It comes back up and you make a bucket of money, or 2. It continues to fall until the dollar loses all value, government as we know it dissolves, and we start using pine cones for currency. If you're leaning towards option 2 then you should probably start investing in small arms, ammunition, food storage, and pine cones.

 

[MinorityReport]

Market is down but good opputunities do exist.

For example : My investment in NVIDIA quadrupled over last 17 months.

NVIDIA is the fastest growing company in US ... and I see it continue this form for next 12 months.


Simlar companies in enegry, food, bio-chem industries offer potential ...
The idea now is "intense survey" .. and reserach.

Gone are the days of risk free 401k affairs and glorious retirement options.

If there will be a war in Feb, make sure you put some thought into defense / tech/ energy markets and invest wisely.

War is good for some and bad for most. Try to Profit on the CURRENT situation, no matter how bad it is .. thats the survival rule#1 in the market today. No use waiting for market to recover ... it will eventually but maybe its too late for you then.

 

[SP33Demon]

Do more research on market history before you dump money into cash accounts. First of all, these accounts are most likely low interest which means you lose to inflation even though you think you are retaining your money. The point is, if you don't invest in something (stocks, bonds, real estate), you by default are LOSING value anyway.

Wyvern, cash accounts are essential to fundamental long term investing. The point of these accounts are to diversify your risk, and in downswings such as this, to minimize your losses... The main thing to understand is that cash accounts can be liquified at any time and converted to stocks. It's simply smart to diversify in this manner IMO, because you won't lose everything at once in a recession/depression.