Meh, I agree that it's not a good sign, but on the other hand I bet a whole bunch of people figured that they're not going to let a major financial institution go under already. When the British government bailed out Northern Rock several months ago, it seemed kinda obvious to me, so it's no suprise when it happens elsewhere.
The best idea is still to invest sensibly - even if it's not as great as it used to be, it still probably beats the alternatives.
Curmudgeon
· 1 year ago
We've been through this before, Steve. Anyone out there remember the 18 months after 9/11? I kept contributing the max into my 401K, and it kept right on sinking . . . until it didn't any more. Within the next year, it tripled in value. This too shall pass, although it will likely take a while.
And speaking of 9/11, the next day the CEO of the company that I worked for at the time sent a message to all employees asking them to show their faith and loyalty to the company by immediately buying $500 worth of company stock. I declined. We had lost two colleagues in the planes that hit the World Trade Center towers.
Ruth
· 1 year ago
This whole financial situation really bothers me deeply, not so much for me (I'm too old to worry much about my future!!!), but I'm very worried for my grown children's sake and for my grandchildren's sake. What will their future be here in the U.S. at the rate we are messing up the economy, the environment, and our standing in the world? I really don't know, which for an opinionated person like myself is quite disturbing. Anyway, to support Steve's assertions about overseas investing, but with a caveat, here's an interesting article: http://money.cnn.com/2008/07/11/magazines/fortu...
MG
· 1 year ago
The signs make me nervous as well, but I think what you say is correct: what other choice do we have than to continue to follow our investment strategy? Real estate is an option I've considered, but not sure I am ready to jump in yet.
Short term, bailing out private companies will avert some signficant oscilations of the market, but at what long term price? We can't keep giving these companies a pass by putting their mistakes on the nation's credit card. I know it is becoming a tired argument at this point, but government can't spend more than they earn and and expect to escape consequences.
I recommended sticking to gold and silver and shorting financials.
42
· 1 year ago
I went to cash probably too early, but that's where I am.
I watch the 20/50wk moving avg of the SPX/SPY. you can roughly time the market with that simple indicator. when the 20 gets back over the 50 and holds, I'll get back in. not til then. this is a very reliable indicator and you can back-test it as far back as 1928 if your charting tools support it (I use thinkorswim.com).
I'm actually planning to rebalance my portfolio soon which will mean buying more American. Call me a nut but I think you guys are on sale... :)
Mike
Bill
· 1 year ago
@four pillars: I think you're right. There may be a double whammy, too: American company stocks rise as the economy begins to turn around (stock market is a leading indicator) AND the dollar rises, giving foreign investors more of their own currency when they "cash out."
Could be the best deal on the planet. Provided, of course, that our government doesn't screw it all up (that's a big IF)
MoneyEnergy
· 1 year ago
To share another idea, one can always move to another country if things get to be too bad at "home". If you've never been to many other places you might be surprised at the high standards of living. I used to think that Canada (or North America in general) had the best standard of living. I just unknowingly accepted this unquestioned dogma. But in fact, on many points, I find that the standards for things I care about are higher in many of the European countries. Public transportation across the board is but one of them. It's just a thought. I think staying flexible is best.
All Comments
The best idea is still to invest sensibly - even if it's not as great as it used to be, it still probably beats the alternatives.
Have you seen the story in The Onion? "Recession-Plagued Nation Demands New Bubble To Invest In" http://www.theonion.com/content/news/recession_....
And speaking of 9/11, the next day the CEO of the company that I worked for at the time sent a message to all employees asking them to show their faith and loyalty to the company by immediately buying $500 worth of company stock. I declined. We had lost two colleagues in the planes that hit the World Trade Center towers.
http://money.cnn.com/2008/07/11/magazines/fortu...
Short term, bailing out private companies will avert some signficant oscilations of the market, but at what long term price? We can't keep giving these companies a pass by putting their mistakes on the nation's credit card. I know it is becoming a tired argument at this point, but government can't spend more than they earn and and expect to escape consequences.
http://wealthbuildinglessons.com/2008/07/14/how...
I recommended sticking to gold and silver and shorting financials.
I watch the 20/50wk moving avg of the SPX/SPY. you can roughly time the market with that simple indicator. when the 20 gets back over the 50 and holds, I'll get back in. not til then. this is a very reliable indicator and you can back-test it as far back as 1928 if your charting tools support it (I use thinkorswim.com).
See here: http://tunguskan.blogspot.com/2008/06/timing-ma...
and
http://stockcharts.com/h-sc/ui?s=$SPX&p=W&a...
Mike
Could be the best deal on the planet. Provided, of course, that our government doesn't screw it all up (that's a big IF)