Thoughts on the market sell off
 

What are your thoughts on the market sell off and impending Bear market? Is our retirement safe? I know most financial planners always tell us, stay diversified but I read where this market might not bottom out until January 2009.

Re: Thoughts on the market sell off
 

When we retired my husband put almost everything in a safe place (dug a hole in the back yeard). No :) he was willing to make less but be sure he always had some money. He said risk was OK while he was working. We made less on our money but it is all still there plus a fairly good profit.

Re: Thoughts on the market sell off
 

If I could predict the market, I would already be retired and living there. The key is to be diversified. And at a time like now over weight into fixed income, perhaps as much as 60% fixed. In a bull market over weight in to stocks, 60% for us retired folks. at this point in my life I maintain a 60/40 split between fixed income and stocks. I maintain diversity in the stocks with some value, large cap, small cap and international. I use mutual funds mostly to spread the stocks even more. Vanguard and Fidelity are both good with low fees. Always re-balance at least twice a year and move in the direction the market is moving. Right now as I re-balance I move more into fixed income. when the market is moving up I will move more into stocks. Again maintaining a 60/40 split. Bull market 60% stocks 40% fixed. In a bear market 40% stocks, 60% fixed. Never try to time the market and always stay fully invested in something. Have patience. Over time you will maintain steady gains.

Re: Thoughts on the market sell off
 

I'm about 95% cash right now and have been since end of '07.

Too many bad things can happen, and precious little good.

Oil - prices - middle east
Terrorism
Iraq
Borders & Immigration
Social Security
Medicare
Jobs
worthless Congress & Presidency

US companies will maintain their financials based on world growth, but the US infrastructure is struggling as I see it.

I may go back into stocks after the first quarter, but.. cautiously.
I'll take a 4 or 5% guaranteed return vs. what??? I'm not greedy

Good luck....

Re: Thoughts on the market sell off
 

Since this is my business, let me just say: Don't panic gentlemen. It's going to get bumpy this year, but don't panic. Also, I have to say John that 95% cash is never a good idea. And do stay out of the bond market for the foreseeable future.

Re: Thoughts on the market sell off
 

This market gets me very nervous, to say the least..What is going to happen in the near future?? Any predictions??

Re: Thoughts on the market sell off
 

I see many buying opportunities and took advantage of some this AM. Yes, I think this year will be rocky..but interesting!!

Re: Thoughts on the market sell off
 

Richman...Any good buying tips?? I'm listening.. :dontknow:

Re: Thoughts on the market sell off
 

Re: Thoughts on the market sell off
 

Sorry Donna. I don't allow my people to do that contractually, so I cannot do it as well. I can point you generally to types of opportunities.

Re: Thoughts on the market sell off
 

Yes, as Margo Channing said, "Fasten your seatbelts, it's going to be a bumpy night." :yikes: I am super naive when it comes to the market. The only individual stocks I have are those I inherited. Everything else is mutual funds and CDs and groceries. But even as obtuse as I am, I know that two keys to riding out any recessionary period are diversification and patience. For market players, there are and will be opportunities to make money. But for those of us who live the buy and hold lifestyle, we just have to make sure we aren't heavy in a Lucent (hey, I watched mine drop from the $70's to about a buck) and that we don't panic. Assuming you are not buying on margin, nobody lost money in the market until they sold. Historically, those who manage to ride out the panic do pretty well --- unless they've got Enron.

Re: Thoughts on the market sell off
 

richman, respectfully differing on opinion

I've done pretty decent over the years investing,
spent many years in finance and I know the ins and outs enough to satisfy me.

I didn't initially plan to be that high in cash, but was making some year end moves, and decided to hold steady in mid-investment, I had a hunch.

I still think it's really ugly for a bit, and I'll stay on the sidelines,
4-5% guaranteed is a great deal right now from my vantage

happy trails!

Re: Thoughts on the market sell off
 

Richman..I would very much appreciate that...

Re: Thoughts on the market sell off
 

well, the market is down 15% from the high, and will be rocky for a few months.
If you're asking if you should "get out" well, it's too late now for the most part.
Things will be shaky for 6 months, and MAYBE stabilize and have a nice 2nd half 2008.

Re: Thoughts on the market sell off
 

Thanks John..Now I feel a little better.. :o