If the S & P doesn't bounce back later today
 

then fasten your seat belts. We are not as close to the bottom as some were figuring.
First step was to diversify.
Second step diversify from a 70% equity position to 25%.
Third, move into fixed income and fixed rate bonds.
Fourth and next, pull the plug from the market....go to guaranteed savings money markets and cd's.....(could have done this a year ago except converted to cash and putting it in a shoe box would be ahead of the current position).

Yes there is change in the air....DO YA FEEL IT????

BTK

So now the DOW has dropped over 50%. Was 14000, now under 7000. But guess what folks. It will have to rise 100% just to get back there. So what was the time period for the DOW to rise 100% in the past? What was the best performance period that got a 100% gain? Go look, it will surprise you. And then the bad news. By the time it does that fantastic rise, there will have been so much money printed that inflation will mean its only worth half that amount anyway.

Best way to redistribute wealth there is. Tax it and inflate it. When everyone is broke we will all be on equal footing. Of course except those of us retired who can't recover with inflated wages. We all need to vote for change again in 2010 and throw out our wonderful congress entirely and 1/3 our senate.

So glad we moved most of our money from stocks to fixed income last year.

First GM and now AIG are still having trouble after receiving bail-out help. Throwing good money after bad. I certainly do not have an answer but it is beginning to look like the chosen path of bail-outs may not be such a good idea.

The Today Show is broadcasting from the NYSE this morning. I just heard Matt use the D-word. Maybe if they would all just shut up....

I see this thread is in Political. This is beyond political, even though it was spawned by some evil stuff, politically driven. And politics will continue to drive it. And a lot of Americans will get run over.

Of course, one's personal history of financial decisions and one's own current financial decisions make a big difference. But this time that does not work exactly like it used to. We are so interconnected now, but not interconnected in a good way.

Sometimes I think we need a new forum for discussion, venting, whatever, about the economy. All aspects of the economy. Beyond the political. There are more big elephants in the room right now than I have ever pretended not to see. And the perspective of our age group on this could be interesting.

But I guess a separate forum dedicated to discussion of all aspects of the economy would not be a good thing for me personally. I would never shut up. And it is more fun to just stop by, check in, and write about Barbie or whatever. But on the economy, I just know I would become like those people on television who just cannot shut up.

Boomer



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Ain't no use a worryin' if the endin' will be bad. (Carousel)
 

I am glad that we decided to invest some of what we had stuffed under the mattress in our house here when we did. However the yard is a little small to grow vegetables and chickens. I think I will now start to wash out the bread bags and reuse them as my grandmother did. Packing lunches, no, but we do save leftovers. Maybe I should bake bread? Other than that, I am going to walk in the sunshine today and try not to think about it.

Bubble syndrome.

We bailed out of the market a year and a half ago, and we're staying out until there's some fundamental improvements. Way too many problems in the short term, and I'm not investing to catch a bounce.

If I had to bet up or down this next year or two, I'd think.. Down

I feel like there is some serious sideline cash out there waiting for confidence. I don't think it's over forever. But I do know that the rules have changed -- maybe forever.

We all know it's not us little people swinging the market. And those big institutions that are dumping stock will be back to scoop it up. When? Who knows?

And I have been saying for a long time that it is not just about me and mine. This thing has arms and legs and heads sprouting in all directions.

We have just completed a building project. We put that in line in front of a second home -- for now. I have seen this thing up close in the eyes of the wonderful people we hired to work here.

And even my buy and hold Cincinnati soap is on a slippery slope.

But I am not all gloom and doom. You really do not have to read this post out loud in a voice that sounds like Eeyore. I have actually been thinking about doing a little sniffing around for a tiny basket of solid dividend payers.

But I never buy anything that I do not understand. Well, not since that unfortunate bubble dancing I did in the 90's. I sure learned though. Experience is the best teacher, you know. This time I am thinking boring, solid, beat up stocks. But I also do not think I need to be in a big hurry. No sudden moves. And just a little.

I realize that some assets are more covered than others. But I also know that we are in this thing together. It's the biggest picture I have ever seen.

Boomer Babysteps

Many months ago I stated how I felt this would effect all of us in some way and I would like to see more empathy and less blame for those amongst us that are struggling just to get by.

We are very fortunate that we have secure jobs, well as secure as you can be in today's job market, and if we choose many more years to work to be able to recover from the losses to our retirement accounts. My concern is more for our country as a whole and if we will pull together during these difficult times or be driven further apart. I hope we show the strength and determination of the Greatest Generation and not only survive but become more united through the effort and hard work that is going to be required of us all.

Absolutely. Me, too. (I left out the part about still working because we are both retired.) We recognize our blessings, too, Halle. And we are well aware of those around us. People who have done nothing wrong.

And yet those talking heads continue to spew venom. And to get highly paid for doing so. Highly paid to think for those who are willing to let them do just that. And it is really just all about the power.

Common sense. Common decency. And middle ground. Where did it go? Can we get it back?

(And what in the world am I doing in the Political Forum? :22yikes:)

Boomer

The sec of Treasury had a few words this afternoon, just before the bell.... that's all it took, DOW down again.

Here's a quote from an article in AMAC Advantage...it's time "we must accept living with the idea of lost opportunities"... we seniors got the shaft and ..."will not capitalize on the rebound of the stock market when it finally occurs".

If the newbies would stay the
 

:cus: off the air for a couple of days and do some home work before they pontificate maybe something positive will catch fire.
They seem to have an amazing ability to quench any market recovery....maybe that is their objective...if it is...it is working.

BTK