I feel we still have 12 months and 10 to 15% decrease to go before things turn around. I did make some changes from very volatile to some more classic stocks, but still, until the bull comes back around the corner, we will watch our spending. Now is not the time to buy most stocks, later in the year, maybe.
Bob & Betsy - USN Ret'd '78 & FL LEO Ret'd '03 FMCA #F203528 '05 HR Endeavor, 40PRQ w/400 Cummins - With -'05 GMC Sierra LT, CC Z-71, the pusher '07 Arctic Cat 500A & Wilderness Kayak, riding in the pusher - Our Current Location
The difference is the worsening fuel crisis creating unpredictable stock freefall, as people run to CDs. Sidestepping nosediving market conditions is always prudent behavior. The losses are still mounting as they did in the 1999-2000 stock market bubble. Commercial real estate loans defaulting are just starting to appear. Phase II of the real estate bubble is looming. Nosediving doesn't happen when market timing. There's likely much more downside to come. Failing to step aside is just repeating the losses. Good luck out there.....
"it always has in the past" WEll WEll then there was the guy whose heart stopped, but it had always beat in the past. Not a good thing to bet on unless one has some facts to back up a reprise of the past.
Mac USAF retired
2001 Seaview 32 ft model 8311
Ford f53
2007 HHR
Brake buddy
Falcon2 Towbar
phssthpok wrote: Maybe if you're already retired (or at that age). I've been trying to get my 401(k) funds into a more secure situation for the last year, but since I'm not eve 40 yet all I can do is sit by and watch as every stinking fund in the plan loses value.
The best I was able to do was take half my holdings as a 'loan' and put it into silver bullion, the spot price of which has at least held steady since purchase, if not gained a few pennies.
One phone call to HR should be able to move liquid funds to Money Market funds the same day. Some publicly traded companies' stock 401Ks can be traded every day by employees with a simple phone call to HR. Check with your employer to find out the frequency you can move your 401K to different allocation choices they offer.
401K plans can really grow over time, especially if you are under 40. Some companies still need to do a better job of explaining their employee's options in their 401Ks. If a company is large enough, this information is in their handbooks or on-line for their employees.
I think the fear of large losses in the stock market has more of an immediate effect on retirees. We were able to ride out the storm of the last downward turn because we were still working. Now that we are retired and on fixed incomes we have to take a much closer look at how to invest. This thread has helped me to determine how to move the funds around. I agree the 401K is a great tool for investing for retirement.
Paul and Karen
New to us 93 Pace Arrow
01 Tracker Toad
For those that are still looking through their rose colored glasses, here is a snippet from todays financial news;
"A toxic brew of sluggish economic growth, rising unemployment, and spiking inflation—otherwise known as stagflation—is prompting market watchers to backpedal furiously on earlier predictions of a rally later this year. Noticeably absent from the discussion are the traditional stock market drivers of strong earnings and interest-rate cuts, neither of which seem to be on the horizon. Economists, meanwhile, are beginning to tamp down expectations for global growth not only for the rest of this year but for 2009 as well—especially with oil surging to new heights.
All of which is leaving traders tossing around adjectives like "tired," "nervous," and "depressed" to describe the mood heading into the slow July-August months. "The market is in for a rough summer," says Gary Wolfer, chief economist with Univest's (UVSP) Wealth Management & Trust Group, who has been dialing down his once-optimistic outlook for corporate profits. Some pros are even seeking refuge in newfangled instruments known as absolute return barrier notes, designed to protect principal first and allow for capital gains second. In this environment, one can't be too safe."
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