The DOW is down 222 points today

The DOW was up almost 350 points today. However, imho, it's a short-lived uptick based on the two month performance of citi bank. Our economy is still in the dumps.

Yes! Now it clear that the DOW will be close to 9,000 by the end of the month. This proves that Obama is a genius who will fix the economy.

See... socialism works after all.

Yeah, right

well, actually I am looking for a up-tick for the DOW for this spring/summer.

Things will pick up a bit in the spring/summer. They always do. A bit. But overall asset prices will continue to fall, until they hit bottom. We are not there yet.

just striving for a little balance is all.

I agree; we still haven't seen the bottom yet, because of those nagging job and home losses that continues to increase almost every day. Until that's stabilized, any uptick in the market is just so much speculation based on nothing more than "hope." BTW, hope is good, but it must be grounded in reality.

The DOW was up 240 points today, but I don't see what's moving the market up like this when the economy is still in the throes of worse things to come.

There are two kinds of investors.

There are people who buy when the market falls and sell when it rises-- and there are people who buy when the market rises and sell when it falls.

The stock market is going up because those of us in the former category; realizing that the DOW has fallen from 14,000 to 7,000, are buying. We also understand that the market generally overreacts to bad news, meaning buying after a precipitous drop is generally a good idea.

At some point the people in the second category will realize that the market has gone up a few thousand points and they will start buying. At this (I figure the market will be over 10,000) and I will be happy to sell.

If I knew the future, then my investments would be risk free and would be rich. But I don't know the future of the market (and in spite of your pessimism you don't either) so I figure the old "buy low/ sell high" strategy is the next best thing.

When you are over your pessimism and are ready to buy, let me know.

ebrown, You may be right, but my crystal ball tells me it's still too early for any sustainable economy while losing hundreds of thousands of jobs every month.

Since our economy used to rely on consumer spending by about 70%, that number will continue to shrink for the foreseeable future. That also means the housing market will not settle down for many months. Without any stability in jobs and the housing markets, there is nothing to provide the support of the stock market.

I hope I'm wrong, but my prognostications have been pretty accurate - thus far.

I sold some of our funds when the market was over 14,000, and bought back about 50% of it when the market was 8,500. That means, generally speaking, that I've "gained" about 40% from the sale and repurchase. Since I still have 50% of my money from the sale, I'm waiting until I "think" it's close to the bottom. I do not think that time has yet arrived.

It is nice you have a crystal ball... but your crystal ball is a rather common model.

Market prices are set by people's expectations of the future. Since so many people expect the worst is yet to come it is likely that this is already reflected in the prices of the market.

I am dollar cost averaging my way in; I put a certain dollar amount in the market each month. This takes away some of the risk and has the added benefit that this plan means I buy more shares as the price gets lower.

But, with the the bargain prices available right now... there is no way that I am not investing in stocks (as part of a diverse investment strategy of course).

My nephew drove up from Rancho Cucamonga yesterday to take me out to dinner, and that's exactly what I told him; to cost average the purchase in the stock market.

My common model crystal ball has performed rather well; we're still way ahead of what we have invested in the market after spending for all my world travel, buying two new cars during the past couple of years, and doing a complete renovation of our home last year, and the loss from the market's drop since its highs in October of 2007.

We'll see if my common crystal ball outperforms yours in a couple of years.

Since I've been retired for 12 years, there is little opportunity for me to gain income from work to purchase stocks to cost average. Since we have no need to work, I'll just enjoy my retirement.

Fill the garage up with long-life tinned food and beer. Corned beef, soup, jam roly-poly and John Smith's Extra Smooth.

Peanut butter "must" be included.

Fair enough. There is sure a lot of money looking for a home. I just added a CD at 1.56%, which is essentially nothing. Still, looking at my mutual funds at the time I went to money market, staying in would have been a whole lot of less than nothing.

Staying on the sidelines till I see confidence replace hope.

I believe you'll still be ahead, because I think interest on savings will now be nontaxable income.

Interest will no longer be taxable?

Don't take my word for it, but I thought I heard something about that under Obama's plan.

How odd! Wouldn't this encourage savings? I thought we were going to spend our way out of debt.

roger, I''m afraid I'm missing your point when you said

Yes it would, but between the banks and tax regs, consumers never really got credit for savings.

And you said Which really threw me for a loop! LOL