Black Tuesday ?

It's going to be REALLY bad, and then it will get better. That's why you invest/spend/save for the long term.

I am FIRMLY convinced that when I want to retire in 20-30 years my stock portfolio will be fully recovered.

It's going to be REALLY bad, and then it will get better. That's why you invest/spend/save for the long term.

I am FIRMLY convinced that when I want to retire in 20-30 years my stock portfolio will be fully recovered.

Oh, sure: 30 years= no problem

But some of us don't have that 30 years,
so we have to take a shorter view.

Which is why you didn't put all your eggs in one basket and diversified, right?

Which is why you didn't put all your eggs in one basket and diversified, right?

Depends on what you mean by "diversified."

Some people who are "diversified" into foreign markets
are getting hit pretty hard right now.

Some who diversified into "cash' positions that include
CDO's, CMO's, etc. are taking/ will take hits.

And anyway, at the basic level it you invest in (2) different
investments, and one goes up while one goes down, have
you gained anything?


"Put all your eggs in the one basket and WATCH THAT BASKET."
(John D. Rockefeller)

Now that it is becoming rather obvious that the economy has
problems, maybe people will quit debating trival matters such
as gay marriage and concentrate on the future of
the country.

This is gonna be bad, people. And it has a long ways to go.

Agreed.

Do you like any of the candidates Capricious? The state of our economy is the big reason I still have an interest in Romney. I don't like him as a "candidate" but in my mind it's debatable how much running a campaign is related to running the country.

This has been coming for a long time, so I'm not so much alarmed as resigned.

I am blaming Walmart and everyone living outside their means (esp. the Govt)!

Tomorrow is going to be an unavoidable ouch for those of us who own mutual funds. The foreign portion is already down. And for the domestic portion, no bailing out early with a sell order at the open, like stocks.

Oh well. Maybe we can flip a lot in PCB to cover the loss. :roll:

Depends on what you mean by "diversified."

Some people who are "diversified" into foreign markets
are getting hit pretty hard right now.

Some who diversified into "cash' positions that include
CDO's, CMO's, etc. are taking/ will take hits.

And anyway, at the basic level it you invest in (2) different
investments, and one goes up while one goes down, have
you gained anything?


"Put all your eggs in the one basket and WATCH THAT BASKET."
(John D. Rockefeller)

We all know that Rockefeller was a wealthy man. It isn't the average investor who is willing to take that risk. In my book, diversified not only pertains to not having more than 20% of your stock portfolio invested in any one company. It also means for the stocks which you do own, diversify into different types of companies, eg- healthcare/drugs, technology, etc. Furthermore, it means that as you grow closure to retirement, there should be a shift in one's percentage of investments, getting more conservative (less risk) as you age.

As for your last question, the answer is, it depends on how much the one went up and how much the other went down.

Also, please remember it is not a loss or a gain until you actually sell a stock or mutual fund. I sat through the big dip in the '80s and I'll sit through this one as well. The loss on paper will be great...it already is, but the market will recover. It is only a question of how long will it take. The media sure doesn't help matters any as they, as usual, paint the darkest picture possible. It raises ratings and sells magazines and newspapers. Use your common sense and do as it tells you. To use an unpopular phrase with some, I plan to "stay the course".

True, I remember when it dove in the 80s. My piano lesson ended early because my teacher was so worried it would be like the 20's, then I heard nothing else about it.

I'm guessing it dives at least 400 pts on hysteria, then recovers a little as the week goes on.

I'm guessing it dives at least 400 pts on hysteria, then recovers a little as the week goes on.

Dow Futures are down 450 as we speak. They always say panic and capitulation signal a coming bottom.

Sniffing for a buy opportunity...

Dow Futures are down 450 as we speak. They always say panic and capitulation signal a coming bottom.

Sniffing for a buy opportunity...

Don't they have something that stops trading after so many points down for a bit so people can calm down?

Fortunately, the market was closed in the US today, so maybe people will have a chance to think about it all rather than panic selling. I've been waiting a while to add a couple more stocks to my SEP, so tomorrow might be my day to take advantage if some of the better companies, with sound financials, take a dive.

I asked Mr. K about Black Tuesday...he commented that maybe that is why his broker called him today. ;-)

Asian markets getting schlocked(!) again today (Tuesday)...gonna be interesting when the markets open tomorrow <donning tinfoil hat>

I hope Bernanke's are made of brass and he DOESN'T cut rates tomorrow; the markets have gotta feel this pain.

.

"...Do you like any of the candidates Capricious? ..."


As far as the economy goes, it does not matter.

By the time any of them take office it will be way too
late. Is really too late to do anything now, for that matter,
but the Fed will go and screw things up by dropping the discount
rate, and dramatically. Then inflation will kick-in and we will
have a second recession right behind this one as the Fed
jumps therates trying to control it.

Day 2 & Asian markets are in free-fall for the second day.

Tell ya what, if this route goes as deep as I think it very well
might, I may guess at a bottom and throw everything into
an S&P 500 index fund, and say the heck with real estate.

I had everything I had locked-up in a note back in '87 otherwise
I would have dumped it all in back then. I am not going to miss
another one of those opportunities.

Just have to watch and see what happens.

"...
Day 2 & Asian markets are in free-fall for the second day.

CNBC has a live feed on its website from Asia & India markets--titling it "Market Meltdown" :scratch: Where have I heard that phrase used before?


.

".. but the market will recover. It is only a question of how long will it take..."



True.

But we all have different time-lines. Scooterbug has 30 years.

I don't want to be waiting more than 10 years. 12 at the outside.

And while one can never know what the future will bring, it seemed
obvious that the meltdown would have to come at some point.

I just had to guess on the timing, and was probably about 6 months
early. Which was actually one of my better guesses.

I was about 6 years early on the 2000 drop. That cost me
plenty in both money and time.

Live and learn

CNBC has a live feed on its website from Asia & India markets--titling it "Market Meltdown" :scratch: Where have I heard that phrase used before?


.

Yea, seems I read that somewhere...

Time to go beddy-by.

I will be checking in on the news sites @ 05:30 central
in the morning to see what's up.

Yea, seems I read that somewhere...

Time to go beddy-by.

I will be checking in on the news sites @ 05:30 central
in the morning to see what's up.

Don't you mean to see what's down?

Capricious,

www.billcara.com

This is a blog I read every day, and IMHO the information you find here may help your "guessing" and speed your retirement!

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Yup, here it comes.

Dow Futures down over 500 as we speak.

"...but the Fed will go and screw things up by dropping the discount
rate, and dramatically. ..."




They just did it.



Dramatically



http://tinyurl.com/2fs66q



Edited to add:


Doesn't seem to be having the desired effect:

http://tinyurl.com/25ouac


``People may see it as an extreme step and feel that it's a sign the situation is worse than they had anticipated,'' said John Carey, who helps oversee about $13 billion at Pioneer Investment Management in Boston. ``This will definitely wake people up who were thinking the economy was just fine.''

It went down 450, but seems to be coming back up a little - closer to 400 now.

I am sure the media frenzy has NOTHING to do with the drop - MSNBC has a giant red banner across the screen.:roll:

Well, looks like just another ordinary down day thanks to
Ben and the boys (with the predictable exception of William Poole)

The calvary arrives just in time.

Of course, in the interest of a quick fix to a
short term problem, they just might be creating
a very big long-term problem:

http://tinyurl.com/yrlv9q
(written before this morning's announcement)

No bottom today, but no reason to expect that the
worst has passed. Back to the MLS websites.

UBS & BOA have issued buy recomendations on stocks.

Considering the recent write-downs on their own "investments,"
is anyone going to listen?