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I'm taking matters into my own hands to help the economy

 
 
Linkat
 
Reply Wed 8 Oct, 2008 10:56 am
I just upped my monthly investments by increasing my contributions into mutual funds by $200 a month. Everything is a bargain right now and this money I am investing is not going to be used for at least 8 years.

Come one you good for nothings - help the economy and make money - I figure if it is good enough for Warren Buffet, it is good enough for me!
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Type: Discussion • Score: 11 • Views: 2,371 • Replies: 39
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cicerone imposter
 
  1  
Reply Wed 8 Oct, 2008 11:18 am
@Linkat,
Linkat, Smart move, and Congratulations. We may not have hit bottom yet, but averaging now makes sense. It also means you have faith in our long-term economy which shows you understand about economic cycles. Good on ya!
Linkat
 
  1  
Reply Wed 8 Oct, 2008 11:22 am
@cicerone imposter,
I hope so I have a Masters Degree in Economics! And in grad school took a course focusing on analyzing Economic Cycles
cicerone imposter
 
  1  
Reply Wed 8 Oct, 2008 11:35 am
@Linkat,
I just have a BS in Accounting, but have worked in management positions for most of my career. Also, my wife and I saved 15 to 20 percent of our income for our retirement, and we're still way ahead compared to what we invested.

When I retired, we consolidated most of our funds into Vanguard, and had their consultants recommend their long-term, conservative funds. I only asked that my wife's funds be more conservative than mine. My wife's funds are down 9.4% through yesterday, and mine is down 15.9% for YTD. With the DOW down 29%, and the Nasdaq down 34%, our mix of bond funds have saved us from the impact of this downturn.

I have opined on several threads on a2k finance threads that the bottom of the DOW will be about 9,000. I sold some of our funds last year when it hit over 14,000, and will buy-back those I sold last year when I think it's close to the bottom. 500 points up or down doesn't make much difference in the long term.
cicerone imposter
 
  1  
Reply Wed 8 Oct, 2008 11:45 am
@cicerone imposter,
Another thought: I never try to out-guess what the short-term market will do, because it can't be done. Look at today; it was down almost 250 points, and it's now close to +50.
shewolfnm
 
  0  
Reply Wed 8 Oct, 2008 11:52 am
I have done something similar.

it is a Mason jar, in my apartment.
Im not sure I have faith in our banking systems as they are..
cicerone imposter
 
  1  
Reply Wed 8 Oct, 2008 11:58 am
@shewolfnm,
shewolf, Any money in a FDIC bank is insured by the government up to $250,000 for individuals.
Linkat
 
  1  
Reply Wed 8 Oct, 2008 12:11 pm
@cicerone imposter,
Funny - I actually work a bit more in the accounting area of a mutual fund company even with my economics degree so go figure.

Any how - I don't look at my investment to see how they are earning (the longer term things like 401k/IRA/529) - I haven't lost a thing yet since I haven't sold anything.

I think this fall will be more dependent on consumer confidence - look the Fed lowered the interest rate (quite a bit), but the markets are still down today - people don't feel good about the economy so they are hoarding their money. There is alot that effects the economy and the hardest thing to gage and to control is how the general population feels.
Linkat
 
  1  
Reply Wed 8 Oct, 2008 12:13 pm
@shewolfnm,
Your funds are protected in a regular bank - at least if you have your money in a savings account you are getting a percentage of earnings.

This is exactly the overall feeling of the general population and why we are currently seeing the market fall even with credit beginning to open and an interest rate drop. People are still scared so they are putting their money in their mattresses.
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cicerone imposter
 
  1  
Reply Wed 8 Oct, 2008 12:20 pm
@Linkat,
True; we don''t lose or gain anything until we sell our funds. However, as for the consumer confidence this fall, it will not be good. I expect that this holiday season will be one of the worst we have seen in recent decades. What that means for the consumer is more sales and discounts.

The current financial crisis will not repair itself overnight; not while jobs and homes are being lost, auto sales are almost non-existent, and more people are choosing between food and fuel.

I'm looking at about plus five years for a "full" recovery where consumers again have confidence in our economy.
Phoenix32890
 
  1  
Reply Wed 8 Oct, 2008 12:24 pm
@Linkat,
Every time I look at my portfolio, I control the desire to puke....................but I am hanging tough. I refuse to run like a rat from a sinking ship. I have confidence in economic cycles.
shewolfnm
 
  1  
Reply Wed 8 Oct, 2008 12:26 pm
@cicerone imposter,
I have money in an account as well
Im just boosting the amount I can save and keeping some in my home.. 'just in case'
Linkat
 
  1  
Reply Wed 8 Oct, 2008 12:27 pm
@cicerone imposter,
Yes - exactly - there are so many other factors effecting the economy - the thing that scares me, personally, the most is the employment rate and the potential for continued layoffs. That will send us in a downward spiral. I figure the money I am increasing my investments in - the shortest time period is 8 years (one of my 529 plans) and I also would guess the 5 year mark for a complete turnaround in the market.
Linkat
 
  1  
Reply Wed 8 Oct, 2008 12:28 pm
@Phoenix32890,
Its hard and that is why I refuse to look - to sell now is insanity - you guarantee a loss. Assuming of course your investments are currently well diversified.
Linkat
 
  1  
Reply Wed 8 Oct, 2008 12:31 pm
@shewolfnm,
Yeah - I have a good amount in my ING savings account - this is my short money - money I plan on potentially using over the next year or so. So at least I get some return while it is insured. So I guess I could potentially lose this - but only if the US government goes bankrupt.
0 Replies
 
cicerone imposter
 
  1  
Reply Wed 8 Oct, 2008 12:32 pm
@Linkat,
What most investors fail to recognize is their mix of their investments between equity and bonds. The younger one is, the more they should have invested in equities. As they get older, their investment in bonds should increase to protect their principal. Our mix is close to 60/40; equity/bonds.
0 Replies
 
Linkat
 
  1  
Reply Wed 8 Oct, 2008 12:46 pm
OK so who tagged this as sheer bravery?
0 Replies
 
cicerone imposter
 
  1  
Reply Wed 8 Oct, 2008 12:50 pm
@Linkat,
Our country has already lost some 750,000 jobs YTD, and I expect those numbers to increase substantially this year. I'm hoping we'll see some kind of turn-around in the second quarter of next year as the credit market begins to free-up, and small businesses rehire their workers.
cicerone imposter
 
  1  
Reply Wed 8 Oct, 2008 12:55 pm
@cicerone imposter,
This was sent to me today by email by a friend:






Verified by Snopes at http://www.snopes.com/rumors/romania.asp

We rarely get a chance to see another country's editorial about the USA .

Read this excerpt from a Romanian Newspaper. The article was written by Mr. Cornel Nistorescu and published under the title 'C'ntarea Americii, meaning 'Ode To America ') in the Romanian newspaper Evenimentulzilei 'The Daily Event' or 'News of the Day'

~An Ode to America ~

Why are Americans so united? They would not resemble one another even if you painted them all one color! They speak all the languages of the world and form an astonishing mixture of civilizations and religious

beliefs

On 9/ll, the American tragedy turned three hundred million people into a hand put on the heart.

Nobody rushed to accuse the White House, the Army, or the Secret Service that they are only a bunch of losers.

Nobody rushed to empty their bank accounts.

Nobody rushed out onto the streets nearby to gape about.

Instead the Americans volunteered to donate blood and to give a helping hand.

After the first moments of panic, they raised their flag over the smoking ruins, putting on T-shirts, caps and ties in the colors of the national flag. They placed flags on buildings and cars as if in every place and on every car a government official or the president was passing. On every occasion, they started singing: 'God Bless America !'

I watched the live broadcast and rerun after rerun for hours listening to the story of the guy who went down one hundred floors with a woman in a wheelchair without knowing who she was, or of the Californian hockey player, who gave his life fighting with the terrorists and prevented the plane from hitting a target that could have killed other hundreds or thousands of people.

How on earth were they able to respond united as one human being? Imperceptibly, with every word and musical note, the memory of some turned into a modern myth of tragic heroes. And with every phone call, millions and millions of dollars were put into collection aimed at rewarding not a man or a family, but a spirit, which no money can buy.

What on earth can unite the Americans in such way?

Their land? Their history? Their economic Power? Money?

I tried for hours to find an answer, humming songs and murmuring phrases with the risk of sounding commonplace, I thought things over, I reached but only one conclusion... Only freedom can work such miracles.

Cornel Nistorescu

(This deserves to be passed around the internet forever.) It took a person on the outside - looking in - to see what we take for granted ! GOD BLESS AMERICA !!!
Linkat
 
  1  
Reply Wed 8 Oct, 2008 01:02 pm
@cicerone imposter,
Thank you cicerone. A perfect article to read when feeling so down on the economy. Maybe this should begin its circulation once again.
0 Replies
 
 

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