GOP gains major ground in confidence polls

[TooFarTampa]

If your 401K is down, it's because you didn't manage it well enough. How is regulation going to keep your 401K balance high? It's not, but it might stymie growth that keeps it from growing. Also, how is government regulation going to make your eye ointment less expensive? Or get your insurance company to pay more of your medical costs? Maybe you're confusing "regulation" with subsidy? Regulation usually increases rather than decreases costs.

I just can't let this statement pass by unchallenged.

I read somewhere along the way that literally a handful of stock based actively managed funds managed to eke out a gain or break even in 2008. Index funds of course tanked like everything else. A quick google search led me to this AP story that says

In 2008, 64 percent of actively managed U.S. stock funds were beaten by a broad market index, the Standard & Poor?s Composite 1500, according S&P Index Services.

S&P, which has released index-versus-managed scorecards over the past seven years, found actively managed funds fell short almost across the board. In eight of nine domestic stock fund categories, a majority of such funds were beaten by their performance benchmark index.

and

To be sure, some active managers have earned their keep lately. Take, for example, Tom Forester, manager of the Forester Value Fund (FVALX), last year?s top performing large-cap value fund. By focusing on defensive stocks as the market tanked, the fund eked out a 0.4-percent gain in 2008, compared with the S&P 500?s 38-percent loss.

But such a story is an exception. That means investors choosing active management must try to find the few managers who show they can consistently beat the markets.

Actively managed funds fare no better in bear markets | Business | projo.com | The Providence Journal

If you, Lynnie and Tom Forester were brilliant enough to sell your stocks at precisely the right time last year, then congratulations! I mean it. But to suggest that those who lost value in their 401(k) are failures because they could not time the market appropriately is ... well, I can't think of a nice word for it. And "accurate" is not one of them. If that is the perspective you are coming from then it is really hard to buy into the rest of your argument.

 

[GoodWitch58]

I just can't let this statement pass by unchallenged.

I read somewhere along the way that literally a handful of stock based actively managed funds managed to eke out a gain or break even in 2008. Index funds of course tanked like everything else. A quick google search led me to this AP story that says



and



Actively managed funds fare no better in bear markets | Business | projo.com | The Providence Journal

If you, Lynnie and Tom Forester were brilliant enough to sell your stocks at precisely the right time last year, then congratulations! I mean it. But to suggest that those who lost value in their 401(k) are failures because they could not time the market appropriately is ... well, I can't think of a nice word for it. And "accurate" is not one of them. If that is the perspective you are coming from then it is really hard to buy into the rest of your argument.

TFT: thanks for responding. I, too, felt this was over the line, but I could not find the words to respond--not words that Kurt would let stand anyway.

 

[Lynnie]

TFT: thanks for responding. I, too, felt this was over the line, but I could not find the words to respond--not words that Kurt would let stand anyway.

I opened my accounts and was given the option of 'self-directed' or 'pay a fee' to an advisor.

In one I had an advisor who phoned me Jan 2008 and recommended selling and sitting in cash. I did. I was lucky. I lost money in other accounts, which was my fault. I called on one other account and could not get advice because it was 'self-directed,' which was my choice. I did not lose as much as I would have if I had chosen to manage all of my accounts myself. I was fairly well positioned prior to the blood bath last year and I am very thankful.

We all sign this paperwork and we all have to accept the responsibility in the good times and bad. Due to some advice from a friend who watches the markets and trends daily, I feel comfortable in that I am fairly well positioned to preserve what I have going forward, but I am watching my accounts more closely than I ever have.

I don't even know who Forrester is, but if he is talking defensive stocks right now, I am listening. None of us expected the DOW to tank like it did last year. But, it seems when something like that happens, some people want to direct blame. Hopefully, we have all learned that self-directing might not always be the right choice. Blue chips and large cap aren't always blue and large. We faced an anomaly year last and I am still learning lessons from it.

My biggest financial upheaval isn't in the markets, but my income.

 

[Lynnie]

I hope you used this same logic in your opposition to invading Iraq and establishing a form of government to your liking in their country. Funny when the shoe is on the other foot.

Hey Rancid, I didn't see this earlier - sorry. First, I didn't spearhead the invasion of Iraq; however, I wasn't for the Iraq war. I am for (since we are there) helping them stabilize in their new government (whether the perception is that we shoved it down their throats or not). I am for executing a methodical exit strategy. I am concerned that President Obama's exit date might not come to fruition, but am hopeful that we will meet that date and it will be successful for the Iraqis.

I like democracy over tyranny for any country. I advocate freedom for all citizens over repression in any country. My shoes are right here on my feet and I love the freedom I have to buy more if I want when I want and I can assure you, only if I can afford them. ;-) That's pretty much my logic.

 

[30A Skunkape]

In the eyes of the world, the US is a nation of greedy, wasteful, arrogant, debt-ridden, self-righteous people--our standards, as a whole, could use a little tweaking (this recession is helping that along).

.

Yet the world enjoys our unsolicited support in so many ways, financially and otherwise. Talk about ingrates...

 

[30ashopper]

I just can't let this statement pass by unchallenged.

I read somewhere along the way that literally a handful of stock based actively managed funds managed to eke out a gain or break even in 2008. Index funds of course tanked like everything else. A quick google search led me to this AP story that says

and

Actively managed funds fare no better in bear markets | Business | projo.com | The Providence Journal

If you, Lynnie and Tom Forester were brilliant enough to sell your stocks at precisely the right time last year, then congratulations! I mean it. But to suggest that those who lost value in their 401(k) are failures because they could not time the market appropriately is ... well, I can't think of a nice word for it. And "accurate" is not one of them. If that is the perspective you are coming from then it is really hard to buy into the rest of your argument.

TFT: thanks for responding. I, too, felt this was over the line, but I could not find the words to respond--not words that Kurt would let stand anyway.

My comment wasn't aimed personally, it was general. The point is this -

invest money in asset + asset value drops = it's government's fault

There's something missing in that equation!

 

[SHELLY]

Yet the world enjoys our unsolicited support in so many ways, financially and otherwise. Talk about ingrates...

...if the support is "unsolicited" we should neither expect--nor demand--any praise or thanks; I would think that any such unsolicited support would be like a "Random act of Kindness" -- caring and selfless.

<Then again, such "unsolicited support" may be considered meddling in another country's business.>
.

 

[SHELLY]

I think inflation is coming, just looking at the money supply and the fed balance sheet. When is another question. I just look at the current numbers, and see signs of it, or the effects of investors seeing it as likely. Impossible to tell really when and how bad it will be.

...expect and prepare for inflation--it's coming.

.

 

[TooFarTampa]

...expect and prepare for inflation--it's coming.

.

All indication seem to be that it is true. I guess my question is when, and how fast?

Is it projected that the sudden inflation will help prop up home prices, giving an assist to the millions who are upside down and not defaulting? The flip side of this is that higher interest rates would make it harder to qualify buy a home, so it is hard for me to understand how home prices would fare.

In such a cycle, how long does it typically take for wages to catch up?

Is it unwise to prepay a mortgage with a relatively low interest rate?

I guess first you pay off any variable rate loans, hoard cash, and get used to living on less.

I don't really remember the last inflationary period so I'm wondering exactly how these cycles play out.

 

[GoodWitch58]

My comment wasn't aimed personally, it was general. The point is this -

invest money in asset + asset value drops = it's government's fault

There's something missing in that equation!

Well, I did not take it personally--I don't think anyone on this board takes your (or anyone's) comments personally--but, you must have meant it "personally" toward someone.It is the attitude that I feel is over the line.

There seems to be no sense of community in most of what you post; no sense that we are all in this together and the humane attitude is one of lending a helping hand or at the very least not blaming people who may be doing the very best they can. I know many who have done everything possible and still this financial situation has caused them to be in difficult circumstances...and no manner of "managing better" will make any difference.

And, that doesn't necessarily mean they expect anyone, including the government, to do anything special for them... but some might expect a bit more compassion generally.