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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Categories: Subprime crisis
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stay the course if you can. Don”t bail them, JAIL them!
I am within 5-7 years away from retirement (may have to rethink that now) and had most of my stuff in either money market or bond funds, anyway. I don’t have 15-20+ years to make this up.
Paid-off mortgage, no debt of any kind.
So, I have played by the rules and tried to manage my finances responsibility… not buying more house than I could afford and not trying to “get rich quick” in stocks. It is better to build wealth slowly.
It really ticks me off that I have to now pay through the nose for others’ mismanagement and irresponsibility. I know there may be a few that got taken advantage of, but I think those are the exception.
We are in a huge market correction (both housing and stocks). We need to quit trying to stave off the inevitable, let the market work, get it over with, and move on. I think the government is just making it worse (as usual). The Democrat FNMA, etc. crooks like Barney Frank and Chris Dodd should be in jail.
If I were younger (much younger), I would probably be sticking it out or maybe even buying… probably in mutual funds that focus on multinational corporations… especially global tech firms, as they have the global diversity in emerging markets to weather this and other firms will be looking to them to provide tech solutions for even more productivity in the future (especially given current conditions).
But, I am at a time in my life that I have to be pretty risk averse.
Actually, I read an agenda a while back from one of those progressive think tanks. They won’t ban guns. That won’t fly. What they think will fly is to issue permits to people who want to own guns. In other words, they’ll tax all of us gun ownin’ folks who believe in the 2nd Amendment.
Anyone who’s opened their quarterly statement this week knows that selling, at this point, will simply be a panic move.
The time to sell was 6 months ago.
I’m going with all the optimistic financial adviser’s advice (conservatives, of course), and, not only holding on, but once this bottoms out & ticks back upward (7-10 days?), I’m sending my people a big check to buy up all the bargains.
TxSkirt #90
Visiting this elderly relative and speaking with many others that live in her “ideal” retirement home – they are all scared to death. Many are dipping into their principal savings up to $1000 a month. They did everything right, and now fear being homeless. Being so close to that fear has made me really wake up. Play with the stock market but don’t put any real faith in it either. Liquid assets are the closest any of us can feel to freedom.
Spend the $$ to see a good financial lawyer (one that also has a CPA behind his other creds) about transferring any funds to you. There may be a way of protecting what they have left. And, you may consider setting aside what they give you in a separate account in case it’s needed for their medical expenses down the road. God bless them and you.
Woulda , coulda, shoulda sold but now
I’m holding on- I’m 47, got 20 years to retirement.
I have a Thrift Savings Plan that I can choose from different funds- I’m mostly in the s&p 500 , a bad year, but I’m in for the long haul.
On the home front, I have been buying ahead on storable foods when they are on sale- you know, canned and dry goods, things we will use eventually anyway,not freeze dried, or MRE’s.
My job is pretty secure(I’m a mailman), but the overtime will probably dry up, so we have to shop wisely.
We still eat out too much for my taste, but keeping the Mrs. happy is
a high priority.
My worry really is less about my wallet than for my kids:
If we trade our liberty, our freedom to succeed or fail, to the government for economic safety; how the hell will we get our liberty back when the panic is over?
I will wait probably til the middle of next week, then use what cash I have to buy stock in business software firms.
Small business will have to cut expenses, and their biggest expense (after taxes) is their employees. If they can find software to do the job more efficiently, they’ll use it.
Just my opinion of course. And I agree with what others have said. If you didn’t sell a couple of months ago, don’t do it now! This is the WORST time to sell! I missed the boat and will ride it out. Whether it takes 3 years or 10, the market will fully recover.
Link
Mrs. calamity and I are letting the 401k sit but we are not counting on it being there when we retire. The good news is that when people are freaking out there are great buys if one knows how to spot them. We will take advantage whenever possible.
When in panic
or in doubt
run in circles
scream and shout
Holding. Continue to buy via monthly 401K contributions. Readjusted one portfolio a bit. No panic.
Right now is a most excellent buying opportunity so that is what I’m doing. The buys will probably lose value in the short term but the long term potential is huge.
As one who believes the markets will correct themselves, I am holding.
I see no reason to panic.
Buy Low. Sell High.
This is Low.
Time to Buy.
When it gets to 14,000 is when you sell.
Do they teach children nothing in public school anymore?
My parents told me they’ve lost nearly the cost of college for me (luckily, I’m out of college) over the last few days. And a friend of mine, whose husband is a Wall Street lawyer guy — and therefore very involved in this whole thing (when my boyfriend and I talked to them, he told us he literally hadn’t gone out socially in about a month — and this is PRE-bailout) said he’d begun buying gold. Those are some pretty scary prospects.
I’m holding and preparing to buy. Always buy quality when the herd is selling, and sell when it’s buying. Mid-90’s to 2001 my wife and I bought investment real estate, and everyone thought we were nuts. 2002-05 we held as people started buying, as prices no longer supported strong cash flow. In 05, when EVERYONE thought they should be a real estate investor, we sold 7 of our properties and paid off most of our principal on our home, refi’d a small principal balance (for tax reasons) into a 15 yr fixed at 4.75%, and put the rest in conservative investments, keeping only our best cash flowing properties. Passed on the ARM’s with all our properties, despite the “advice” of many lenders, and stuck with 15 and 30 yr conventional loans. Since 2005, we’ve been sitting on cash waiting for this correction, and have just recently begun putting offers out on properties selling here in AZ at 40 cents on the dollar to what they sold in 05/06. Most of our assets are in real estate, but as for stocks, my feelings are much the same…buy quality when everyone else is over-reacting. Only works when you’re sitting with some cash in hand though.
If you don’t, learn a lesson from this and pass that lesson on to your kids and grandkids…like my grandfather (who started 17 businesses throughout the Depression years, 1 of which succeeded, but succeeded wildly) passed on to me and my family.
Invest in yourself through education, because you are your biggest asset. Spend some, save some, and give some away. Make investment decisions with your brain, not your heart. Don’t put all your eggs in one basket. Buy low, sell high. Accountablility. Individual responsibility.
Simple, common sense words that work in any market.
I’m NO stock market guru (and I don’t pretend to be), but there’s a phrase (pardon my paraphrasing) about how bears and bulls ultimately win, but pigs (people that pull out at the first sign of trouble) get slaughtered.
DH and I are taking money that’s sitting around in money markets earning 1.5% and throwing it at our 6% mortgage. Paying off 6% debt is the same as earning 6% on an investment.
Paying off our own debt – amazing, huh?
I sold my last mutual fund a month before this Democrat caused melt down. Caused, but successfully lied about and covered up.
OT, but open thread so I’ll give it a go…
Does anyone think that someone with BO’s associations would even be allowed to be a cop? Before he became a cop, my brother was put through a lot of questioning, and they even questioned friends and family to make sure he was not a loose cannon, or had any shady connections.
So half this country thinks it’s okay to hand over our defense secrets to someone who fraternized with a domestic terrorist and attended Wright’s sermons?? Who Farrakhan lauds as the messiah?? There are so many things to fear in an Obama presidency, but this terrifies me the most.
How can this be possible?
Hold. Gotta hold. No doubt about it.
They’re too busy teaching about “THE ONE”
Hey folks
Just talked to an old friend. He’s lost 2.5million in value in 2 months. He holding.
YIKS!!!!!!!!!!
I am buying. No funds, just some companies that I think are undervalued.
I know lots of folks who are buying gold.
Thanks I needed a good laugh.
holdin on for the ride!
A friend (jokingly) asked what I thought of the idea of putting everything in his mattress.
I told him to sleep on it.
*Satire warning!!!*
No panic, as Obama will soon be President and everything will be fine. We won’t need 401k’s anymore, or stock markets, as Social Security will be fully funded and expanded by increasing taxes on greedy corporations. Health care will be free, so I won’t have to worry about that budget expense anymore. I’ll get incentives to practically cover the cost of my new electric cars. I’ll be one of the 95% given a tax break, so I’ll certainly have more money in my pocket. Screw those greedy 5% who will finally get what they deserve…paying all the taxes! The world will love us again, and so we won’t have to spend money on war ever again, which will loosen up tax dollars for more social programs…maybe one day even providing for ALL my basic necessities, such as a new laptop every 3 years with high speed wireless internet access, monthly food coupons for Whole Foods, a nanny for my children, and cable with a few movie tiers. With Obama as the inevitable next President, how could anyone possibly be in a panic?
Gold is down. There is a fear the US will unload it’s gold reserves. NOT TRUE
I have a good 30 years before I retire, so I’m buying through my normal investment contributions. My dad and his wife took a bath on this, though, and they are holding (after moving a few things around), but they are way closer to retiring then I am.
Good luck, everyone.
MostlyRight; YOU CAN MAKE A FORTUNE JUST BY SELLING WHAT EVER YOUR SMOKING.
Which is why I won’t be buying gold right now.
FamilyMan…didn’t see the satire warning at the beginning, did you?
iamsaved: Your treasure is your family
OT, but this is an open thread and this is really bugging me.
Does anyone think that BO would even be able to become a cop with all of his associations? My brother had to go through a lot of questioning, as did his family and friends to make sure that he was not a loose cannon or have shady connections.
And half the country thinks it’s okay to give BO all of our national security secrets?? This thug from Chicago who is buddies with Ayers and sat in Wright’s pews for 20 years? A guy who Farrakhan praises as the messiah he has been waiting for??? I doubt it. There are many things to fear from an Obama presidency, but this terrifies me the most.
How is this possible?? These people are completely crazy.
OOPS! Hanging head
I’m holding. I think if the Gov’t can keep it’s hands off regulating the market and perhaps roll back some regulations, things will improve sooner.
You listen to all these Financial experts and one thing becomes crystal clear: No one can see the future. They are all making educated guesses, too. I trust my instincts to hold `em and not sell low to buy high.
Holding strong.
FamilyMan it’s o.k., I’ll make the warning more explicit next time! Read #113 to see how I really feel.
And I couldn’t agree more with IAmSaved #129…the best advice yet.
I’m buying everything in sight. Mostly shares that have dropped less (by percent) than the market as a whole. Missed out in ‘87, but not this time. The farther the markets fall, the more I buy.
You are correct.
What’s my position?
Well, it has to do with grabbing both my ankles and bending over, I’ll leave the rest up to you.
I’m holding on to my investments and am increasing my contribution by an additional 2% to my 401k. Thank God I can do so, it is a good time to buy.
I’ve got at least 24 years to retirement. Hang on and keep feeding the 401k. And at about 5 years out, take a very, very close look at the market and start moving to a stable income position.
FamilyMan: It is true, precious treasures here on earth are your family. If God is first and foremost and you’ve taught your children well, you will be with your family both here on earth and in heaven in the afterlife.
Earthly treasures – even family – will all fade away in time. God said in Hebrews 9:27: And as it is appointed unto men once to die, but after this the judgment.
Maranatha!
Said a prayer and we’re hanging on. Firmly believe things will turn around. They always do.
Had already sold all but one stock that’s affected by the downturn.
Wish I had the cash to buy right now. The rebound will be great.
Once the government figures out that it can’t do anything to help and can only hurt things, we’ll be all right.
I’m holding in my 401k. I have cash in a savings account if I need cash and if the bank is open. What’s the point of selling unless you need it right now?
I did buy a little extra food and got some cash just in case the G7 meeting tomorrow results in a bank panic/closing.
I’m buyin’!
I bought some stock this week.
Plan to buy more next week!
It’s just GOT to get BETTER!!!!
Thank you. I was beginning to think you flipped to the other side.
Somewhere today I read where the presser by Bush didn’t help matters. I’m thinking for all the folks in D.C. -
Lead, follow, or get out of the way!
Washington does not make a profit on anything – they produce nothing, and to think they can is foolhardy. Let Capitalism work out it’s own problems.
iamsaved: Everything other than my family is just FLUFF.
The next nasty phase could be unemployment. And do not underestimate how far the market could fall.
And watch out for the Russians:
“Medvedev proposed that European countries work with Russia to form a new transatlantic organization in which the US was no longer the dominant power.” (USA Today)
I’m leaving what’s left of our 401(k)’s alone. Then selling everything we own of any value to buy back in after the market bottoms. It seems likely the market will bottom/stop panicing after the election (one of the biggest unknown’s right now.).
Not only can we drill our way out of our foreign oil problem we can drill our way out of this financial mess. Pumping oil out of our own ground will provide a windfall to the government from royalties not to mention the additional income tax revenue the government will receive from high paying blue-collar jobs.
Energy is the answer to a lot of questions. I wish our politicians could put this together.
Well, I say we buy more guns and ammo, we sell the republican party, and Mccain with them. Did yo hear what he said today at the townhall meeting? WTF. The crowd was goaning! This guys is a total idiot! I say we trade 1 Palin for 2 Palins. CLONE her so we can have 2.
mutig, unerschrocken
Hold, buy when we find the bottom.
Start drilling and remove ALL business income tax. We’d be back in six months.
Very interesting analysis of BHO and his various “associates” and the current “crisis”
http://www.americanthinker.com/2008/09/barack_obama_and_the_strategy.html
June
401k: shoulda-woulda-coulda…
On the positive side, dollar cost averaging will help me keep from selling.
The rapid rise in oil prices contributed heavily to this world wide slide.
Now that the price is coming down, we should see some stabilization and hopefully the bottom is close.
Sell California. It’s worth a few thousand and would remove 40% of the far left libs in the country.
FamilyMan: I have to respectfully disagree. There is something more precious than family.
“He shall cover you, and under his wings you can trust. There you need not fear the terror by night, nor the destruction by day, for the Lord is your refuge and place of protection. He shall give His angels charge over you, to keep you in all your ways” (Psalm 91:4,5,11).
If you’d like a little joy in your life during these troubled times, try viewing this site – don’t worry, it’s not a bunch of religious preaching. Just some warm thoughts to cool a cold evening. Go ahead. I dare you
Holding with higher than usual cash positions waiting to buy…could we be near the bottom? How long is the question.
Hang tough. Are things in the financial world bad. Probably. Is the reaction proportionate with how bad it really is?
Highly doubtful. A lot of this is mental. I think the bail out bill approach to this exacerbatted it.
Buy, hold, don’t sell in panic mode like everyone else has done this week. Selling in a down market is the wrong thing to do.
If you bought stock at higher prices, buy the same stock again now when it’s lower.
Dollar cost averaging is the key here and it makes the decline in value much less painful.
In the end, when the market recovers, and you’re in it for the long term, you’ll come out way ahead. And you’ll end up paying lower capital gains tax if you hang onto it for the long term.
My creator gave be the gift of choosing joy or sorrow. I choose Joy.
I’m buying more guns and ammo, among other things. Kinda off topic.
Hold On!!
On Black Monday in 1987, my then government teacher in high school lost $25,000.
Back then, I remember the DJIA was no more than 700, and trading was in the hundreds of thousands.
Now, the DJIA closed the day at what, just over 8,500 and traded in the couple of billions?
Hold On!!
I’ve got the intellect of a houseplant yet I have been clearing 2k a day on stocks like FNM & FRE. In a market like this why let someone you have never seen make investment decisions about your hard-earned money. Also, remember parents may not be able to afford to buy a Play Station or a G.I. Joe with the Kung-fu grip for their child but everyone will still buy turkeys, hams, food to put on the table. There are many good buys, companies that have been drug down with the market and are much lower than they should be. Take responsibility for your hard-earned money, do lots lots lots of homework and buy! HOWEVER, DON’T GET GREEDY and please re-read the first half of the first sentence of this post!
I increased the amount of money I dump into my 401k today to the maximum. I may increase it even more, since I’ve got another $5000 I can put in as catch-up if I choose. I don’t know if we’re at the very bottom yet, but there are definitely undervalued companies out there right now, and by the time I need this dough – 10 to 15 years – this week will look like a blip.
Or, it will look like the beginning of a horrendous financial disaster, in which case the money dumped into stocks will be the least of my problems.
But I’d say cautious buying is in order right now. If you don’t have the stomach for that, at least stand pat. Selling will do nothing but lock in your loss.
Exactly. No panic
Buying seems to be the thing to do. I like to spend money
It’s like CHRISTMAS IN OCTOBER!!!
My position has been for the last two years: cash, gold, and building equity in a home that i bought 10 years ago for 1/3 of the then completely insane market value of 1.3M, here in the Berkeley California hills.
The purchase of the home happened right before the dot com bubble burst, the bubble that provided the proceeds for the purchase. The value of the house has tripled with zero improvements. So even a 50 per cent devaluation would leave me with plenty of solid value. Gold has gone from the mid 200s to the mid 800s in that ten years. I continue to buy.
The dot com bubble burst was a pretty good indicator of things to come, especially in real estate and stocks.
So I am holding to this position while making major acquisitions in terms of fuel storage capacity, water purification and storage, emergency food supplies, ammunition, power generating equipment, and day-to-day commodities that one would need to stay clean and hygenically safe in the case of major supply chain disruptions due to transportation company failures.
Supply chain and distribution is my area of expertise: the supply lines into America run on bank credit, ladies and gentlemen.
Battles are won before they are fought (i think that was Otto Von Bismarck) and this battle has been on for the last term of the Bush administration.
An Obama presidency will result in great suffering in the name of class warfare.
Be safe. Be thoughtful. And get to know your neighbors.
I am proud to be an American.
Live free or die.
Bear1909 out.
Hey Family man LOL
Thank You iamsaved.
I just returned from a a 6 day vacation away from internet, (man did I go through withdrawal) phones, and work. I really needed it. I played with my grandson all day for the 1st 3 days and read trashy novels for 2. What a let down when I got home and caught up on the current events.
But, I promised my daughter that I would try not to monitor the news & the stock market every waking moment. I have decided to limit myself to 2hr in the evening and put it all in God’s hands.
BTW, Free Obama!!!!
Where has the Messiah been in all of this?
He has had no presser in two weeks. When is he going to talk to his peeps?
hey bear1909,
What do you think is the best way to buy gold? We have a little cash that we would like to put into gold but not sure how.
I just watched McAmnesty on televison at a speech earlier today, DEFENDING Obama as a good family man that “is a decent person, a person you don’t have to be scared to be president.”
bought a new shovel…dug a deposit box in the back yard…busy afternoon.
where did you see that, if i may ask? My god,if he said that no wonder it looks like he isn’t fighting…looks like hell..isn’t fight.
We are riding it out.
My husband checked his 401K a few weeks ago and it was down $6,700 then. We know it’s down way more now. No need to look again, though. If we do, it will be to move some money around in it. I want to reexamine what stocks our 401K are in.
I have a small IRA that is in mutual funds and it’s down $800.
I am thinking of investing a little in gold just to diversify a bit.
I’ve always had the attitude of not even opening our quarterly statements, but out of curiousity I opened my IRA’s. We haven’t gotten our 401K one yet. We’ll see if I can stand not opening it. LOL
My husband has a good old fashioned pension plan through his work at the newspaper here that is stable, thank goodness. The Virginian-Pilot and the other media companies that Landmark still owns are privately owned. The pension plans are going to go away once the company is sold, though, so once we get that money, hopefully the market will stablize by then.
I saw it on MSNBC twice now. He actually TOOK the mic away from an old woman that had said she was scared of the arab, and he assured her that Obama was a good man that they didn’t have to fear… McCain is TOAST. grrrrrr
Holding; I got my monthly statements the other day. I’ve lost about 10% value on investments. No sense selling now, as most will go back up. However, I won’t be buying until things get calmer, also waiting to see if Congress is going to strart taxing 401k’s, and raise capital gains.
I just started investing in a ROTH IRA last year, and by my figuring I’m down about $500, about 1/4 of my investments.
I’m in it for the long haul though, in Hope that it will rebound.
Why… thanks Family Man.. but I think you should stick with your wife.
HUGE WINKY FACE as is SARCASM ALERT (just making sure you see that, lol)
San Fran Nan is at it again.
http://www.investmentnews.com/apps/pbcs.dll/article?AID=/20081007/REG/810079894
I have to agree with you ponsdorf I have added two new acquisitions to the family arsenal along with plenty for the news ones plus the ones that have my faithful friends for years. Along with enough other essentials to sustain 5 adults and one infant for 4 months should some services breakdown or we begin to experience supply shortfalls for some basics. If things go as bad as some fear at least I will have capability to defend what little we have or take to the nearby mountains to put meat on the table.
As far as my money I am extremely conservative in my investment strategy and our families loses are almost negligible however a good friend that I work with at the base lost $50K in the last month. Like I used to say during my flying days I only gamble with my life never my money.
I have 7 years until “retirement age” and I am in Indexed Annuities and Indexed Universal Life. I just bought another Indexed Annuity with a Guaranteed Lifetime Income Rider.
I am doing great and my clients are in the same things and they are very happy. As a matter of fact, I haven’t had this much fun on the phone in ages!
Propping up the market just isn’t good enough. We have to encourage businesses to expand. That means lower (or no) taxes and less regulation. As a business owner, I’m sick and tired of the state and fed looking at me like a piggy bank and the best way to enact their social goals. If they don’t knock this crap off, I may well close my doors in disgust and they won’t get anything from me.
McCain townhall video.
If you didn’t get out by now, HOLD. I started getting nervous about a year ago and got out then, completely. Now is NOT the time to panic, as the MSM is trying to get you to do, and sell off. Ignore ALL of the chicken little BS that you are hearing from ABC,CBS,NBC,CNN. The are nothing but panic whores whose business is to keep you as scared as possible by sensationalizing and focusing on the negative. I would like to see THEM go bankrupt. I DO agree that the time for buying again is close at hand. When everyone is crying that “the end is here” and “nowhere to go but down” etc. then start buying again if you are in the position to.
Too late to sell so I’m holding on for the long run. On the other hand, I think it is too early to buy. The market is going to go down at least another 10% to 20% before it bottoms out, IMHO.
Rob, my man, i’ve read your postings here, your a conservative what are you doing watching that channel? Oh, tks for the info and yes, I agree, with 1 exception “we’re toast”…McShame is milk toast. I just do not understand how the guy can pass up so many ways to fight this empty headed, empty suit and he does practically nothing.
Thanks for the link Mookie almost as depressing as the link about the Dems wanting to punishing the well to do with 401ks for producing and investing wisely. I wouldn’t doubt if some people are bailing out of the market fearing an Obama Administration. McCain really needs to buy a freaking clue people are very very very angry at the Government for selling us down the river to the socialist and have every reason to fear the anointed one not only for his bad policies but also for his associations with radicals and known terrorists.
Off Topic!!!!
Panel found against Sarah Palin; it will not be easy to make people understand what these findings mean, and the difference between “unlawful” in the context of employment, and “criminal” in the context of, say, everything in the Democratic party.
Well, thats exactly the problem we are in today. The schools teach the kids that everyone is a winner.
(and if they’re not a winner then its Bush’s fault and Obama will fix it)