States debt crisis

[westcoast]

After watching the 60 mins segment on the looming debt crisis in many
of the States I decided to get out of the market and stay on the sidelines
for a while. I believe this market has gone as far as it has and will run
out of steam next year. But what do I know, just a feeling. Question
now is where park my money. Any suggestions?

[Army Guy]

Yes, I saw that segment too, and am also doing my own research on it. Remember CBS is somewhat bias, do you own research. One should never react to one thing with long term investments. By pulling out now you may have lost money, by not having recouped all your previous losses. And with the market being somewhat down this is a great buying scenerio!
As far as where to park it, well, if you have no trust in the market all that is left is your bank, but then what if the bank folds? What if the government locks down all banks? Unless you keep it under your bed where it earns nothing and actually loses value there is no place. That is why it is best to just research, be aware, may become more conservative in your investment baskets.
Army Guy

[gongoozler]

Put the money in cash or gold coins . . . right now property is down and going down another 10-20% over the next two years (yes, even here in The Villages) . . . with cash you'll be ready to jump in and pick up some good investment deals if you don't mind being a landlord. But then if the winters stay like this maybe no one will rent in the Villages during the winter, I certainly love the Villages but I would not pay $3,000 per month to put up with the weather we have had over the last three weeks.

:(

RI/AL/TX/CA/AK/MA/RI . . . TV

[Boomer]

After watching the 60 mins segment on the looming debt crisis in many
of the States I decided to get out of the market and stay on the sidelines
for a while. I believe this market has gone as far as it has and will run
out of steam next year. But what do I know, just a feeling. Question
now is where park my money. Any suggestions?

The woman you saw on 60 Minutes a couple of weeks ago is Meredith Whitney. She has been taking a little pounding since then from those who do not want to hear what she has to say about the states.

But I think we all know that there are states that have been mismanaging money for years. Who knows where it will all lead.

I listened to a C-Span interview with Meredith Whitney that was done in August. If you want to know more about her, you might want to listen, too. But if you don't want to listen to a whole hour, maybe at least drag the little thing at the bottom of the screen to around the 30 minute mark and listen for a few minutes while she talks about transparency, about stocks vs. bonds, and about how investors should not be intimidated by those who want to make them think they cannot understand their own investments.

Here's the interview...

http://www.c-spanvideo.org/program/295272-1

And here's an article from Fortune about how Meredith Whitney rates the states.....

http://finance.fortune.cnn.com/2010/09/28/meredith-whitneys-new-target-the-states/

Boomer

[batman911]

The state and city governments will simply raise taxes or create new ones to get the funds they need to survive. It is not politically acceptable to do that until there is no other choice. I would not be worried as long as the Fed is there to bail them out with their printing presses. Best idea is to stay diversified and have a percentage of your savings in all the major areas (bonds, stock, real estate, foreign markets). I believe now is the time to buy low maintenance rental properties in areas that have done well in the down market. There are lots of people that will not be able to buy a home for a long time due to forclosures and loss of capital. Home ownership no longer is the primary goal of the younger generation.

I have found over years of investing that most of the time the best thing to do is nothing when after reading/viewing these scare stories. Set long term goals and stick with them.

[Boomer]

The state and city governments will simply raise taxes or create new ones to get the funds they need to survive. It is not politically acceptable to do that until there is no other choice. I would not be worried as long as the Fed is there to bail them out with their printing presses. Best idea is to stay diversified and have a percentage of your savings in all the major areas (bonds, stock, real estate, foreign markets). I believe now is the time to buy low maintenance rental properties in areas that have done well in the down market. There are lots of people that will not be able to buy a home for a long time due to forclosures and loss of capital. Home ownership no longer is the primary goal of the younger generation.

I have found over years of investing that most of the time the best thing to do is nothing when after reading/viewing these scare stories. Set long term goals and stick with them.


BINGO! Batman!

But, in all fairness, I have to say that I believe that we each just might have some sort of built-in, maybe even genetic, predisposition to our attitudes about investing. "Know Thyself" and if thyself is having some problems, stop and breathe and educate thyself before turning it all over to somebody who taps into thyself's fear. Understand what thyself is doing and why thyself is doing it.

I have a new book that I bought when I heard about it on Nightly Business Report which is the only market thing I watch regularly because it is such a quick dose of what's going on day by day. Half an hour -- actually less when I watch it recorded. Nobody on it gets a look in their eyes like a wild horse. Nobody hollers at me. I just get a feel for what's out there.

Anyway, my new book is called Market Psych: How to Manage Fear and Build Your Own Investor Identity. And even though, after all these years of living with my own decisions, I know how I am about this stuff, I still have a fascination with the psychology of it all. Actually the book looks a little tedious, but I will get to the good parts. (Geez. Why can't I shut up. Now I am sounding like an English major with a psych minor.)

I yam what I yam Boomer

[batman911]

Boomer,

I watch the same show daily. My favorite financial sage: Warren Buffet
Who can argue with success.

I also believe that by the time you see it on the tube or read it in print, the opportunity for action has passed. You will only become part of the herd chasing a buck down the drain.

[Boomer]

Boomer,

I watch the same show daily. My favorite financial sage: Warren Buffet
Who can argue with success.

I also believe that by the time you see it on the tube or read it in print, the opportunity for action has passed. You will only become part of the herd chasing a buck down the drain.

Warren Buffett (sigh)....If only, if only I had only one share of BRK-A I could go to the annual meeting. Of course, i would probably act like a groupie and get kicked out.

And you gotta love his letters to the shareholders. And he writes them himself. Yep. That's what I hear. He writes them himself. And that guy sure can turn a phrase. Ohhhhh, be still my foolish heart. I must get out of here or I will start quoting Warren Buffett and make as big a fool out of myself as I do when I start in writing about Carl Hiaasen.

Boomer

[batman911]

Boomer,

You and I missed a great opportunity to buy A shares for under $100K a while back. Just seemed like a lot of $$$ to put in one basket.

[Boomer]

Boomer,

You and I missed a great opportunity to buy A shares for under $100K a while back. Just seemed like a lot of $$$ to put in one basket.

Uh, Batman,

Early 2009 - $78,000 and change. But that's still one honkin' basket.

Oh well, I can dream...."A tisket, a tasket, what's Warren got in that basket?"

Boomer

[rjm1cc]

CD's at insured banks.

[inda50]

CD's at insured banks.
1 to 2 percent hardly seems worthwhile, I like land