Open thread: What’s your position: Buy, sell, hold on, panic?
Here’s a Friday evening financial open thread. How are you all dealing with the market roller coaster? I’m keeping my cool and holding on.
Are you buying, selling, freaking out, putting everything in shoeboxes?
Feel free to share your thoughts, recommendations, etc.
Posted in: Subprime crisis
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Hold on. Don’t panic. We could be in for a depression but hope for the best.
Buy
I’ve never been in the market so I want on hte big guns while the price is down
Generally, the stuff I have still in the market I am keeping there.
I was knibbling a bit with my mutual funds, but now am holding off on more. Keeping cash and figuring to buy some real estate, I have one rental property (my old house) turning a small monthly profit (I love a THIRTY YEAR FIXED RATE MORTGAGE!). I will be transfering overseas for my job next year though, so I am not sure about buying more.
I’ve gone this far so I might as well ride it out.
I’m concerned, of course — who knows what the government will do next? — but I am also looking forward to opening an account and buying stocks in the not too distant future — after the election, perhaps? But for now that is only an intent. I remain cautious and will watch carefully. Nevertheless, greed is stirring somewhere within me . . .
We’re in a cautious hold right now. I’d be looking to buy for when the market recovers, but we’re stuck paying 2 mortgages right now since we can’t unload our old house. We’re one of those forgotten losers during this housing crisis: a military family forced to move by assignment orders. Our house has been on the market since March with zero offers. We tried to rent, but that ain’t happening either. We won’t be defaulting on any loans, though. We’re cutting out restaurants and movies, reducing energy use, making minimum credit card payments, suspended deposits to my son’s college fund, etc. Hopefully, we can get out from under that house soon! It’ll hurt for a while, but we’ll make it.
The market is so low, you can afford to miss the beginning of the recovery, even by a few hundred points. I don’t think this is the bottom. I told my wife yesterday, it has to stop soon or we will be down under 1000.
I agree. I have one. I think all ARMs should be illegal.
As for the market, wait it out. There really isn’t much you can do anyway. I’m sure that whatever I had isn’t worth that much but there’s no sense in jumping to panic mode.
Time to buy not a time to cry. BUY BUY BUY BUY BUY! Buy until you’re broke and you can turn to congress for a bail out if the stocks tank.
Dude, where’s my bailout!
At least the army is steady employment, I have a feeling that is going to be important soon. I am considering going back full time myself if my job tanks.
We are packing it in and going to take our sailboat and go for a cruise. Depending on the election we will be gone six months or four years.
Holding and waiting for signs the bottom has hit to start buying. Sitting on cash.
I guess I’m crazy.
I have a good financial position, thought I’m not rich. I’m position myself to buy into the rest of my Roth IRA (boy, I’m glad I forgot to do that!). I will likely buy blue chips, but may go for something like Goldman Sachs.
Also, my local banks are full of money. I can easily buy into houses; it’s still very much a buyer’s market, and my bank is willing to even let me take a loan on the down payment.
I’m looking into rental income housing, using “cash momentum” techniques to roll from one to the next.
Or, maybe I’m not crazy and I’m a capitalist who sees an opportunity.
The question is what to do about capital. If you hold and the dems win in November taxes will take your savings.
If you buy then you run the risk of having the markets degrade your money.
Id say put your money in tangible assets. Buy things that can be resold at a later time without too much depreciation or climbing taxes.
Land is a good buy or housing buyng while its cheap and selling later when the markets go up.
I’m not even 40, so I haven’t considered cancelling my 401(k) contributions. I have other money in extremely benign savings accounts that aren’t making crap, but at least they’re not losing.
Hold. Buy if you have enough to gamble and you understand your risk horizon.
We’re holding on for now, and planning to buy if we can figure out when we’ve hit bottom.
LOL I just checked the stock we got yesterday and it’s already up 1.56% today. Now start the drilling and I’m set.
Locate good companies that are on sale due to the overall market sentiment and buy as much as you can. Two companies on my watch list are just about to get snatched up by me in a couple of weeks.
Ignore the big money talking heads and look for excellent businesses that are priced low relative to their value. It’s worked for a hundred years and it will work now. Just don’t get caught up in thinking that “The Market” is everything to a small investor.
I started buying Wednesday.
if i had money i would buy like my life depended on it.
Got out of the market when the DOW hit 13,000. I got nervous when a waitress at my favorite restaurant tried to give me investment advise(not that Jim Kramer inspires me either).
After I pay for the last semester of my son’s college education(December), I’ll be back in.
I am killing off an remaining CC debt that I have and I am investing as well. My primary focus however is on the CC debt right now. I don’t think we will see bottom until we hit 7500 or so, hopefully no worse.
I recently upped my deduction percentage for my 401K. So I’m buying. Slowly.
As luck would have it our company changed owners and our 401K transferred at the very bottom this week. I was thinking of changing the investments to the bond class but I think I would rather continue to buy while the market is low.
Hanging tough and I am going to INCREASE my 401(k) withholding starting next paycheck.
Looking for a bottom: maybe 3 or 4 sessions in a row with small downs (-50) or gains.
If you stayed in the market this long, of course you should hold on, ’cause ya already lost your shirt and pants.
If the market drops further it may well be a wise time to buy stocks, but personally, I’m gonna stay away from Wall Street. Its too full of high rollers for this simpleton. Us peons that think we’re “playing the market” are no different than the old lady playing the nickle slots… while the fat cats stand in the pit counting cash. They let ya win now and again, but then, once you’re all in, BAM!!! Sucker!
I’m a firm believer (now) in being able to touch what I own. That doesn’t involve sending money across the country to Wall Street.
Been out for about 9 months now…
I would get in if the government would stay out, but a lot is going to depend on what the G7 says this weekend and next week.
If the Government starts to get equity in companies? I’m buying those same companies, as they WILL eventualy get preferential government treatment, just like Fannie and Freddie in the past.
Buy!! I recall some of the wealthiest people in my home town were the ones who bought during the Great Depression.
Just sitting tight. Stocking up on food, and other necessaties. I don’t even want to open my 401(k)quarterly report. I might cry.
Didn’t make any moves in 401k (I’m only 30).
Gonna keep an eye on things and then start buying.
just opened my first investment account in 5 years. Maybe this time I will not lose all but the last penny.
Wish I could invest in Port Security. Great Catch and ataboy
What the H-E-double-hockey-stix do we need to do to make the free market truly FREE?! Imagine the impact if we just cut the capital gaines taxes…How much of a positive impact would that have on the market? AM SO FRUSTRATED!!!
Revolution.
I’m buying – buying ammunition, canned goods, gold, and a shack somewhere in the Dakotas. Make sure your portfolio is diversified and balanced, with an equal distribution of rifles and shotguns. That should be useful in surviving the hard economic times ahead and riding out the crisis, which could last the next four years.
Okay, kidding.
I’m holding on. I’m with mgraves, we haven’t hit bottom yet, so I’m not going on a buying spree just yet. And I’m pretty happy with my 15-year fixed mortgage.
There is NO WAY that the $700B bailout was the answer.
The solution is to free the free market!!!
Buy now and hold onto what I have. I’m nowhere near retirement and my kids are infants.
Holding on to what I already have and carefully searching for good buys among the Blue Chips and other historically strong companies that I expect to see rebound while prices are at multi-year lows … so I guess that is a mixed approach response …
Few choices in my 401K but moved a third to bonds. (The only choice still up for the year.) Another third vaporized, but Franklin Raines will pay me back I’m sure. In other personal investments a couple of gold and mining stocks that I’ve had for awhile (up nicely), the rest cash. There will be huge bargains in everything eventually, cash is king.
Might as well hang on. Since we’re all going down together, it’s no different than increasing the minimum wage. Besides, if you win $100,000 in Vegas, keep playing and lose $50,000, you’re still up $50,000. Do you really want to get out and miss the opportunities ahead?
The cost of selling is more than you think, so if you are going to exit, sit down with your tax person and run a few scenarios. You’ll be shocked that the 15% capital gain is nowhere to be found after the final computation.
Only take out what you might need and be glad you have anything at all.
buying opportunity
Anyone and everyone who is going through difficulties right now has my prayers and thoughts with them during this period.
I am one of the lucky ones I guess that just wasn’t invited to the party. I’m still paying rent after many years because I couldn’t get credit. I didn’t have a “bad” credit history just “no” credit history.
So I am used to having to save “before” a purchase and I don’t have any stocks or savings to worry about losing. As such I feel blessed.
It still amazes me when I see, even in the last few days, people paying for a sandwich or a pack of cigarettes with a credit card.
Its much more the roller coaster that’s causing issues, if the market would hover at almost any number the scaredy cats would calm and the market could start a steady climb.
People just need to let the dust settle so fear can leave as a driving force.
I wish I had some cash to BUY, BUY, BUY!! However, while I’m at home with my daughter, we have to keep the cash fund we have liquid for the rainy days to come (we’re glad we’ve had it for the few that have already passed).
Airline miles if they’re smart. Pay off the balance every month. If they don’t, don’t worry, Crap Sandwich 5.0 will bail out everyone’s CC debt using our money. Please stop trying to save for your family when there are lazy people to rescue. It’s a financial Katrina, and yes, you’re doing a fine job Paulie.
this all depends upon your age and/or how close you are to retirement. that being said if you have another 10-15 years before retirement: i would hold, i would also be checking out various stocks to purchase. we may not be at the bottom, yet, but we are close enough where you can find some buys that will translate to some definite increases in the future. i would be investing in America and in her ultimate rise from this ash heap.
for those investing outside of 401ks or plans similar, i do believe that until we find out who the next president will be, however, i would cash out where possible, i would move out of the more aggressive growth funds as the capital gains tax of today may not be the capital gains tax of tomorrow.
be wise with any purchases making sure you verify the business plan, the inventory valuation, and income/loss financials if you are going to purchase any IPOs or riskier stocks.
if mccain becomes president watch an ultimate rise in the market beginning almost nov 5. although, end of year is financial markets are sometimes lower as people sell stock to for various reasons preparing for the upcoming year.
I’ve got 20 years before retirement so I’m holding on. Will probably increase my percentage allocation for my 401k next year…though I might take some of that and do some Gold purchasing too…just to hedge myself a bit. You’re suppose to buy low though, right…this should be the time to do that and hopefully be ready to sell high in 15 years.
Got out last October when it became apparent that there were going to be no conservatives in the national elections. Our national financial stability could only get worse or worser or woserer.
I did a little buying after some selling. I have held onto some other stocks that got killed. I’m not optimistic, but felt I needed to gamble a little. I’m 80% cash.
I am PISSED at Clinton, Raines, Waters, Dodd, Frank, all other Democrat politicians, ACORN, biased media, and the weak Republicans. They have cost our great nation’s people a lot of money.
The worse part is that there is NOBODY held accountable!!! I want Raines indicted and Dodd, Frank, et al held accountable! I want McCain to go after Obama to tie him to this whole mess and I want him to do it on national TV in the next debate. PLEASE……..channel Lee Atwood or something GEEESH!
After the Beanie Baby bust of 2002, I’ve shifted my investments to a single category.
Plastics.
Numerous months ago I sold stocks in both my husband and myself IRA to cash. All had a good gain. Our joint account has lost gobs since big brother got involved. When I heard what bho had planned for the U.S. tax wise if he did indeed become Pres. and had the Congress to back him I will keep it in cash. I have great stocks and most pay a good dividend. They all are in the tank and I am so tempted to buy more, but I just do not trust bho. I plan to wait to see how this mess gets handled. I am not selling any stocks now, they are all in negative terrority.
L
I’m just sitting tight on a bridge waiting for a bus.
I sold the stocks I play around with right before the first bailout vote. I’m gonna be in a holding pattern though, slowly purchasing some guns and canned food, possibly gold depending on how that market goes. not panicking yet though, once the government declares war on citizens and tries to confiscate weapons on a massive level, it’ll be time to make a stand.
I don’t havce a choice. My portfolio is so faqr under water that it’s visiting the German U-boat fleet. I have to hold on and try to ride it out.
My 401k is down more than 50% since last year… so absolutely no point in pulling out, the penalties for early withdrawal would give me chump change. Definitely riding this one out. Trying to scrape together 20k for a down payment on property. I tried the whole “build flawless credit and save till you can afford it” B.S. but I’m not making that mistake again. Houses are cheap, and heck, if they get cheaper the Fed will bail me out of the difference right? It’s instant gratification time! (End Sarcasm)
The #5 horse in the fourth race at Belmont looks pretty good at the moment.
Mostly Hold, with a little buy with what cash isn’t dedicated to debt reduction. I have close to 30 years to retirement, so I have time.
Down $300,000 (from high not buy price). Added a few shares. Holding the rest. If I was more liquid, I would be buying. Energy is selling like oil is free. Anyone buying the best companies at these prices will be very well off in a few years. However, if I was a young person instead of a burned out hippie, I’d be moving to Australia or New Zealand. I don’t think the future of what’s left of America is nearly as bright as it once was. Too bad.
Apple has lost half its value in the last few months. I’m waiting for it to bottom out so I can buy. There are probably a lot of bargains in the stock market right now. Warren Buffett didn’t lose any time snapping up discounted businesses when the market turned turtle. Neither should we.
I’m also very encouraged by the real estate slide. It looks like it will continue for another year, maybe longer. Now is the time to prepare yourself to buy a year or two out. There are bargains now but there will be even better bargains later.
It all reminds me of when Hannibal laid seige to Rome. The Romans were optimistic about the future, telling their legions in Gaul to stay put, the Home Legion could handle Hannibal. During the seige, the land under the Carthaginian camp was auctioned off and sold at a profit. When Hannibal relented and moved on, Rome pressed on.
America will press on through this. The optimists will profit, the pessimists will lose.
Hold and don’t panic before you know it all will be well again…..I have seen it in the 80’s and the 90’s THIS TO SHALL COME TO PASS! relax my fellow conservatives!
Wife and I just bought a home and some acreage (income producing property) by selling from her trust account for a sizable downpayment and getting a 30 yr fixed mortgage for the rest. This happened just before the big market falls, so we lucked out there. We’re sitting on the rest, but we have an amazing money manager (let me know if you want a recommendation). Much of it is in resource materials, which have been doing quite well. So we’re riding the storm, and not too worried at the moment.
I’m riding the storm out. Pass me a barf bag though.
Cautious buy. There are alot of good stocks that are very beat up. A little shopping can get some good deals.
There’s not really much I can do with my 401k – it’s getting crushed right now, but as I’m 26 I’ll have time to dollar-cost average.
My non-retirement savings I am trying very hard to protect. Right now I am betting on massive inflation considering all the money the government is printing and injecting into the financial system.
Our governments actions are by definition inflationary, however there is a small wrinkle – the rest of the world is still lending us money. My bet is the rest of the world will figure out this country can never pay back the loans, and countries will start bailing on the dollar. So my long term investments will stay in gold, silver, oil, foreign currencies, and mining companies.
THE PROBLEM:
BUSH / PAULSON DESTROYED CONFIDENCE & CREATED PANIC.
“To sell the bailout to the public, everyone from the President on down had to go out and tell people how bad everything was, that the world was coming to an end”
THE SOLUTION:
1. “We The People” MUST force Congress to come back NOW to restore confidence in the Democratic Process. Confidence in the Democratic Process was destroyed during the run up to this “Bailout”. THE MESSAGE – DEMOCRACY IS DEAD & BUSH / PAULSON ARE IN CHARGE OF THE WORLD ECONOMY. – FRIGHTENING ENOUGH, IN AND OF ITSELF.
2.HAVE PUBLIC HEARINGS: Allow prudent economic experts to be heard. EXAMPLES:
Why Paulson is Wrong
http://faculty.chicagogsb.edu/luigi.zingales/Why_Paulson_is_wrong.pdf
Is the bailout needed? Many economists say ‘no’.
http://www.mcclatchydc.com/227/story/53107.html
“NO BAILOUTS” PLAN
http://www.denninger.net/letters/genesis.pdf
The “No BAILOUTS Act” – from Congressional Study Committee
http://www.defazio.house.gov/index.php?option=content&task=view&id=441
3. It is NOT too late to regroup. “WE THE PEOPLE” must restore confidence in the process NOW.
I’m 44 and still likely have about 21 years to go before I retire. I’m holding on and continuing to dollar-cost average my way into the market through my 401k, Roth, and a little bit of non-retirement money. I will continue to do so, and I haven’t sold a thing.
Those who sold this week and didn’t need the money are going to really regret it in the long term.
Question: Statistically speaking, is it easier for a citizen to win the lotto jackpot or get earmarks?…does anyone have access to this data?
I’m holding on and when it’s time, I’m in it to buy. Panic causes knee-jerk reactions that are rarely, if ever, the best response (or even a good one).
Strong Buy. Market irrationality has hit a peak. It’s so bad that Anheuser-Busch is trading at 58.50 even though InBev is buying them at 70 in two months. That’s amazing. We’re at or close to a bottom.
Even if the market goes down a little further and you wait, you won’t buy in until it gets back into this range after the turn.
I’m doing a little bargain hunting but for the most part I’m standing pat.
You’ll kill yourself trying chase the market.
I’m in Gov’t bonds. Haven’t lost a penny in over a month and a half.
Haven’t made much either but, steady
and up. Waiting for bottom then will get more agressive.
Wait for the market to hit below 8000pts and then buy, buy, buy!!!!
Since it’s an open thread, I’ll provide this little Tid Bit.
Hey, at least she was wearing her seat belt!!!
What’s that old cop saying? Never surprised but often amused.
Just got online and saw the thread…
Hold onto guns knives swords whatever
Sell whatever you can get cash for
Buy ammo, sealed rations (survival mre’s whatever) and scotch.
Just kidding, you can buy any drinkable disinfectant not just the scotch.
Oh, yea. and my lottery tickets are laying right here in front of me.
I do. I recently acquired an inheritance sum, and after my move to another part of TX and settling in, I’ll probably be ready.
Stay right there, Johnson and Raines are on the way to pick you up right now…
We’re involved with a forgotten segment of this whole fiasco. Namely, the elderly. What assets they have has been converted to cash and it’s not earning enough for them to cover their bills on a monthly basis. Many are having to dip into the pricipal and they’re scared to death they’ll outlive their money. One of our relatives lives in an “active adult retirement home” and it’s about $2500+ a month. Should that person need assisted care, it’ll jump to $4-5000 or more per month. Only until they need full nursing home care does their long term care policy kick in.
We cashed out some time ago, but this lesson has taught me to not squander on useless junk, gifts that are not needed, or a meal I could just as easily prepare at home. We’ll all be in the shoes of our older relatives someday. It’s not what you earn but what you keep, the time to start is now.
I have one foot on the window sill after we lost 30 grand in 4 days but I am starting to buy,some good deals out there.It will come back up.RIGHT?
Yeah, no matter what age you are, you have 30 years to retirement. (Except for Dodd, Frank, Johnson, Raines and Gorelick).
I buy everything on credit card and pay off at the end of the month. I get cash rewards of $100 every couple of months. I don’t buy what I can’t pay for.
As for stock, I bought a little during the downward spiral but am waiting to catch it on the way up.
Never put in the market what you’re not prepared to lose. Just like Vegas.
HOLD, if you are a normal investor.
If you invest in risky stuff, then it’s up to you what to do.
I’d hold.
Wait for upswing and take advantage of it.
A question for all: What stocks would you buy? (It’s gotta go up at some point….so which stocks would be a smart buy?)
One of the nice things about letting your 401(k) or similar account do the dollar cost averaging thing is that you automatically get more shares at a time like this. If you’re a ways from retirement you’ll look back and be glad you were able to get another shot to load up on some extra shares cheap.
Depends – are you in the arrow business? Wool research? Puerto Rican Rum?
Pretty pathetic…when I saw the title of this thread with the word panic, I got an earworm of an old Osmond’s song.
Don’t Panic
Lately I’ve been thinking where my
headmoney is going latelyAnd amidst the confusion I become disillusioned
Don’t panic, I keep telling myself
Don’t panic, got to be yourself
Before I think of changing, before I think of rearranging
Show me what you got to offer, maybe I’m better off without it
Don’t panic, I keep telling myself
Don’t panic, got to be yourself
Maybe I’m in a corner and maybe I’m a part-time owner
In a world of confusion, makes me wanna seek seclusion
I appreciate what someone wrote today.
“Why would anyone trust either candidate to help dig us out of this if they can’t speak frankly about what got us into it?
One had the sense this week that our entire political class is playing Frisbee on the edge of a precipice, that no one is being serious enough, honest enough, that it’s all too revved, too intense, and yet too shallow. I have grown impatient with the strategists from the campaigns, the little blond monsters who go on cable TV to give us their bouncy, aggressive, tendentious talking points. They are like the men on the plane, the gargoyles with BlackBerrys who think the race is about them and their personal win/loss ratio, who think history is their plaything, who stay up with the press in the bar sipping Perrier and calling it seltzer, and who advise their candidates, in essence, to talk down to the voters, to the American people. They treat every crisis as if it is a political fact to be used for gain or loss, and not as a real crisis, something that deserves a response of gravity and seriousness.
It is asking a lot to ask a political animal to be thoughtful, because they find meaning in action. They are propelled through life by the force of their hunger. But now and then you want to see them think. You want to see them speak the truth. This is one of those times.”
Though she’s not liked among many here, she does speak a bit of truth. The author’s name: Peggy Noonan.
I agree with jdtruly, a unique opportunity knocks right now, and wise investments can be rewarded. Never before in history have individuals been given so many great resources and real-time information to make intelligent decisions on your own.
Learn, and learn fast (getting a 5% return in 3 days, really beats a 3.25% return in one year — now compound it!).
Don’t wait for the ‘Next Depression’, make the most of the one you have today.
Go to the
warmarket with thetroopsdollars that you have.I work in the financial industry, and I am also holding on, as painful as it is right now. Luckily I am not retiring for quite some time, so I am hoping for some major returns over the course of time. Unless you are a skilled day trader, the best returns on stocks are over the long term.
A bit off topic, but this is how I’ve come to feel:
On 9/11, it would have been better if Flight 93 had been allowed to hit its target (ie, the Capitol Building, but only if Congress was in full session), in exchange for the other three planes not hitting theirs.
That way, the more valuable entities (ie, free trade center and Defense) would’ve been spared, and the real culprit behind all this crapola — a liberal Congress — would’ve been “dealt with”.
Buy, buy, buy. Everything is on sale. And holding onto what I’ve got.
24Klady I’m dealing with that with my parents now. Both are retired and in declining health. They just sold their house (paid for) and want to buy a new home closer to us. There concern is what is going to happen if Obama becomes POTUS. The money they saved need to last, but they want to give some to us because they are afraid of estate taxes that Obama is going to issue.
My folks were blue-collar workers who saved their money and paid cash for everything. Now they may lose it all because they are considered “rich” by Obama’s standards. I guess no good deed ever goes unpunished.
Sell everything and use the money to buy guns. Buy extras to give to the less fortunate. Bury some in your backyards along with plenty of ammo. bho’s thugs will be on a gun collecting spree if we let him get in along with many other things. I’m kidding (mostly) but it’s getting to this point. I’ve read in other blogs that if bho loses there will be violance in the streets that make the L.A. riots look like a picnic. This jerk actually said if bho loses it will be because of voter fraud on the republican side. What has happened to this once great nation that my dad fought for in WWII?????
I expect it to hold steady or rise slightly. If Obama (socialists) wins, crash.
I am holding for now.
test
Good place for info.
I set my 401k to the most aggressive profile. I’m only 32. I’ve got a house and three acres. I can grow my food and raise some livestock if I need to. As the song goes…
“A Country Boy Can Survive”
We’re not a Marx economy yet. We’re more of a Keynes economy.
Gorebot #88, I’ve thought the same thing about Flight 93. I think some of those 9/10 libs would think differently today if that would have happened.
No debt and plenty of money in the bank. Its almost time to ride this bronco to the top. This is the market I’ve been waiting all my adult years for, so I’m about to own me a nice little chunk of all the big boys. If we could just drop to 5000 first ….
I just hope this market stays down until my year-end bonus comes in too.