Todays headlines from wall street. Will it affect your lifestyle? Our 401K has nosedived and will make us rethink our travels.
"With the Dow sliding into a bear market on Wednesday, the dark days on Wall Street are far from over, amid record oil prices, struggling consumers and the never-ending credit crisis.
The Dow became the second major U.S. index to enter a bear market, crossing the critical threshold of a 20 percent decline from its peak, following the NASDAQ in February. The broader S&P 500 (^SPX - News) is a little more than half a percent from the same fate.
News on the struggling economy could get much worse, with Thursday's government report on June payrolls seen as make-or-break. Any further worsening in the employment picture could stir more gloom about the health of consumers.
"I think we're seeing a capitulation of sorts and a sign that the market is really on its knees. The market needs a positive catalyst. It could be the jobs number," said Marc Pado, U.S. market strategist and technical analyst at Cantor Fitzgerald & Co in San Francisco."
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Well - I don't think it had to be declared "official" for most stockholders to know and understand it, but in any event, I guess it is always nice to know that someone or some entity has determined an event to be "official." Remember, there have been many "Bear Markets" before and eventually they have all turned Bull again - and so we should believe that this too will pass.
The Texan wrote: Todays headlines from wall street. Will it affect your lifestyle? Our 401K has nosedived and will make us rethink our travels.
No, won't effect my lifestyle. If your 401K has nosedived, there's still time to move and salvage it's remnants. This was all predicted many months back. Scores of people I know moved theirs well over 6+ months ago. No surprise at all.
I was glad the fed didn't lower the interest rates yet again.
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The Texan wrote: Todays headlines from wall street. Will it affect your lifestyle? Our 401K has nosedived and will make us rethink our travels.
No, won't effect my lifestyle. If your 401K has nosedived, there's still time to move and salvage it's remnants. This was all predicted many months back. Scores of people I know moved theirs well over 6+ months ago. No surprise at all.
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.
Since I am still 10-20 years from retirement, it really is no big deal (other than this will be a great time to buy lots of stock at bargain prices). Note that as I get closer to retirement, I will move my funds gradually from "volatile" assets like stocks to more "secure" assets like bonds and such.
Now my DD1 is starting college in a year, so this will affect her college fund.
Skid Row Joe wrote: No, won't effect my lifestyle. If your 401K has nosedived, there's still time to move and salvage it's remnants. This was all predicted many months back. Scores of people I know moved theirs well over 6+ months ago. No surprise at all.
I think we're past the point of moving it out... the odds are awful high that were near the bottom and you'd miss the run back up.
I dumped early in the year. Unfortunately, I only get really poor returns on my only "safe" option in my 401k, but 1% up over the last few months is far better than 20% down.
I starting to thinks it's about time to move it all back in.
* This post was
edited 07/03/08 02:14pm by an administrator/moderator *
The Texan wrote: The Dow became the second major U.S. index to enter a bear market, crossing the critical threshold of a 20 percent decline from its peak...
Translation: BUY! BUY! BUY!
Whenever the market declines, losers sell and winners buy.
Tim
"Okay, I admit it, the only thing I'm really good at is being me."
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