Hello folks,
So let's talk stock market. As an uneducated investor (only the best kind there is), I'm feeling pretty helter skelter about this debacle. 5 months ago, I invested the only large sum of money I have ever been able to call my own. Today, it is halved. I don't want to look at my portfolio because I am a "long term investor" but frankly, I am scared of bottoming out. It's like if I have enough to last through this tough time, I know it'll grow again so that's why I want to stay in, but I just don't know if my money will last through it.
Different forecasters are positive about the correction of the problem, but they also predict that this isn't the lowest the market will go. In fact they are calling for an ultimate low of -30% by 2010. Awesome, just in time for me to be an adult.
And on the flip side, what if I decide to grow a set and actually look into buying more stocks now while the market is low?
Basically, this is a decision that has no "sure thing" answer. Please add your two cents (or 15 grand if you're feeling up to it...) to my poll that I made.
Friday, October 10, 2008
Subscribe to:
Post Comments (Atom)
Posts
2 comments:
Hanerz, number 1) the stock market hit a high of approximately 14200 last summer...so it has already had a 30% correction, in fact we're about -40% from the highs right now. Number 2) you can start buying cheap stocks soon...once people realize that there are a lot of good companies (with good management) that are being sold off just because everyone else is selling. Just sit tight dawg.
I agree with Mike, you need to sit tight and not make any rash decisions. Realize that information drives prices, and no matter how great an opportunity you think you see, the market already has the information you do, and is in the process or already finished equaling out based on that info.
I've suggested this to you before, if you really cannot handle watching your money go down anymore, put your money into a T-bill or some other "riskless" security (quotes because nothing is truly risk free, it's just assumed the government wont go bankrupt". It's not going to earn you very much, but it'll be a good way to make sure you don't lose much more. Then, when the market picks up, go back to your mutual funds, or stocks, or what ever you feel comfortable doing.
There are also a ton of investment tools out there. Find one that will tell you what to invest in given your age, goals for the money, ect. When they ask you what type of investor you are, definitely select "conservative" :P
Post a Comment