The DOW is down 222 points today

@hawkeye10,

Let´s face it, hawkeye. All we can do is guess, and sometimes we can be spot on!

For instance, I sold off 50% of what I must sell this year from my IRA under IRS rules when the market was close to 11,000. Did I do the right thing or not?

1 Reply

@cicerone imposter,

Hard to say, because I dont know where you have your money. The global financial system is highly unstable, so we should be diversified. You should have money in property, gold, cash, stocks, bonds and possibly in some insurance instrument. Taxes will be an important consideration going forwards because governments will have no choice but to ramp up tax rates significantly, but I have no idea how to avoid paying increasing shares to the government.

1 Reply

About half my portfolio sold itself on May 5 and 6, all stocks I'd bought between 12/21/09 and 3/1/10

I ended up with mostly gains, anywhere from 1% to 14% averaging out to 8%, but took one bigger loss, and one small one. 4 gains, 2 losses.
My total gain from these sales were just over 4%, so I'm not to0 unhappy, considering.

Now for the fun part, looking for more stock!

1 Reply

@chai2,

Quote:

Now for the fun part, looking for more stock!

Aussie mining stock. hold for 2 - 5 years.

0 Replies

@hawkeye10,

I believe in investing in most in your list except gold. The appreciation in gold isn´t stable nor keeps up with the stock market. People´s fear of inflation is unfounded, because of the world economy, the consumer and national debt, and the future of our economy for the next five years. As long as unemployment lags the increase in economic output, our economy will suffer more from deflation.

0 Replies

Fun day, huh?

1 Reply

@chai2,

Quote:

Fun day, huh?

Fun few weeks, the dow is already down 1000, with no bottom in sight.

1 Reply

@hawkeye10,

The recessions we've been experiencing are now snowballing into a major depression.

In middle class neighborhoods, individuals are now eating out of the garbage bins.

Will the Gov ever wake up?

Does this mean the end of Obama?

0 Replies

@cicerone imposter,

quote="cicerone imposter"
I've been saving half of the funds I sold when the market was above 14000. I bought back 50% when the market was down to 8500, and wondered if I should purchase another 25% today?

What do you think and why?
---------------------------------------------------------------------------------------------
Answer:

I'm neither buying nor am I selling. I'm holding and I'm collecting some very nice dividends. I'm also holding and buyin more bonds.

Patience and diversification are essential in these trying economic times.

1 Reply

@Miller,

I've increased my bond holdings since I last posted here; my wife and I are a little ahead this year.

0 Replies

I've been making some good gains with dividends.

1 Reply

@chai2,

Good on ya!@ Not many are ahead this year.

1 Reply

@cicerone imposter,

Hey, look who finally found his way back home to A2K!

1 Reply

@Butrflynet,

Don't look too long! LOL I'm at the public library to use their computer.

1 Reply

@cicerone imposter,

cicerone imposter wrote:

Don't look too long! LOL I'm at the public library to use their computer.

Nice to hear from you ci!

0 Replies

so the Dow bounced around all day, not doing much of anything, not wanting to go anywhere, then in the last hour drops 100 points. These last hour mega moves are becoming normal, and this is a bad sign. This instability of the Dow mirrors an instability in the Global economy. Everyone has gotten twitchy.

2 Replies

@hawkeye10,

I believe 'twitchyness' is something to keep an eye on, but it's darn hard to interpret, except that markets don't like uncertainty.

0 Replies

@hawkeye10,

hawkeye10 wrote:

so the Dow bounced around all day, not doing much of anything, not wanting to go anywhere, then in the last hour drops 100 points. These last hour mega moves are becoming normal, and this is a bad sign. This instability of the Dow mirrors an instability in the Global economy. Everyone has gotten twitchy.

I believe the instability of the Dow is due in part to the too many short sellers, who spend all day, buying and selling. They never hold on for the long term.
Best to ignore the market for the time being, unless you've got a really good stock that pays a good dividend and is also very stable.

1 Reply

@Miller,

Quote:

I believe the instability of the Dow is due in part to the too many short sellers, who spend all day, buying and selling. They never hold on for the long term.
Best to ignore the market for the time being, unless you've got a really good stock that pays a good dividend and is also very stable.

I doubt it, with so much volume coming at the end and with all of the problems we have seen with computer flash trades of late the evidence supports the conclusion that humans are not doing most of this trading, computers are. However, given that computers have been programed in such a way that they keep dumping huge loads of stocks at the end of the day I think that the humans who program them are twitchy.

This is a recipe for disaster. There is no long term faith in the markets, everyone is all consumed with getting out before the next crash, heading to the exits first. Pretty much assures that we are in for another crash soon.

1 Reply

@hawkeye10,

With this long-term instability in the markets, more people are investing their money into bonds that at the very least assures some protection for principle. This year has been a disaster for most investors, and the outlook for the next five to ten years do not look too promising.

In this morning's San Jose Mercury News, over 40,000 "local" home owners are delinquent on their mortgages, and that number will continue to increase - which means less consumer spending. We all know what that means for the GDP.

Hang onto your hats, because the wind is going to blow harder for the next several years...

1 Reply

The DOW is down 222 points today

Related Topics

Quick Links

My Account

able2know