Posted on 09/25/2008 6:47:47 AM PDT by reaganaut1
As background, my wife and I are in our 30s and have savings in the six figures.
I am not selling our stock mutual funds, because the 20% fall in the stock market YTD has already reduced our exposure. I will not buy individual stocks, because recent history shows how big companies can go to zero in a flash.
Municipal bonds have higher yields that Treasury bonds of comparable maturity, so I bought a long-term muni bond fund. I don't think Bush's tax cuts for the higher brackets will be renewed.
The yield spread of corporate bonds over Treasuries is much higher than 2 years ago, so I am thinking of buying some corporate bond funds, both investment grade and high yield, in our retirement accounts.
The Federal reserve is wearing many hats, trying to avoid a financial crisis, stave off a recession, and keep inflation low. That's a tough balancing act, and I think the inflation target is often the one that is not met. It's probably worth having some money in foreign bonds, gold, or a mutual fund that tracks a commodity index.
I think a recession is likely. I work in the investment business. Thank goodness my wife is a doctor. She would like to add a garage and a bathroom for the basement, but we will probably hold off.
I am investing in shovels. They make digging the money holes in my back yard easier to dig. Besides, the value of a shovel can only go up from hear as inflation starts to rise.
(I am being cynical)
Remember a stock loss is still just a paper loss unless you sell...over the long haul the market has proved solid.
I’ve been steering away from stocks as well. Most of my investments are in mutual funds right now, some bonds, some higher risk stuff. I just recently got into an Emerging Markets fund and am also researching foreign bond funds.
Think Exchange Traded Funds (ETF): focus on Water, Agriculture, Energy, Emerging Markets.
I have Financial Planning background, (currently a mortgage consultant) and this is what I am doing with my own money: WAIT.
I will not sell anything now. Instead, I am buying, buying and buying!! Especially in Real Estate.
I have followed this contrarian approach for years and have always made a good profit from it AFTER economic down-swings. The most important thing is...be patient! This will not happen overnight.
I’m thinking of investing in petroleum jelly futures because I think the need for it is fixing to become quite dire.
I have liquidated common stocks and mutual funds to cash and the rest of my 'wealth' is tied up in super CDs and bonds.
The one that worries me is a 6.75% 'senior note' issued by Goldman-Sachs.
Any comments, anyone?
The Muni’s are going to suffer in this bailout. Dropping property values and slowing economy are taking their toll on state and local tax revenue’s.
I also recommend ETF’s. You avoid the risk of individual companies, but have the liquidity of stocks.
Now that the commodity boom is nearly over and the overseas stocks have been beaten up..it is time to start buying some foreign ETF’s. My favorites..EWZ,EWS, and EEM.
They are much cheaper than mutual funds with expenses, have similar levels of diversification, can be used to short or hedge a portfolio, and can be targeted to specific market sectors or countries.
They also trade like stocks, so you can get out quick, or use stop-loss orders. You can also buy options on them, or sell options with a covered call writing program to generate income while you wait out a market downturn.
PM me if you have more questions.
increase your cash position
open an e trade account
bookmark a few stocks that are undervalued
buy on a dip down
dont wait too long as a rally should be expected soon
a few stocks i am long on right now:
etfc
nvda
cpsl
have fun!
real estate.
when housing is low, you buy it.
inflation ALONE will take the prices up
guns and booze. In preparation for the zombie apocalypse, of course.
Sounds like you know pretty well how to invest. I too own stocks, and I am holding on to what I have, I have some good investments there. You never lose on Stocks til you sell, all of my stocks pay dividends too, at a higher rate than a savings account.
It wouldn’t be a bad idea to have had some gold investments, have that one covered personally. I don’t think it will come to that though, but at least it is comforting to know you have it.
I don’t do mutual funds.
You might be sure you have plenty of canned goods, and alternate heating sources for the winter. :-) And don’t forget the tissue paper and batteries.
I bought AIG on Monday.
I have a lot of diversification and on overall investments, even with the drop last week, I’ve only lost a couple of percent.
For stocks, I am moving more into core companies with good fundamentals, low (or no) debt, and good cash on hand, such as MSFT. Next week I may get back into GE, but wait until the panic regarding the stopping of the stock buyback to keep their AAA rating clears.
Shares in local bank. Wal-Mart stock.
I just want to get the same deal as Jamie Gorelick did from Countrywide. Did anyones else see today’s Wall St. Journal?
(We taxpayers should look at investing in companies that manufacture hemerrhoid medication.)
So...when you're ready to sell, good or bad, will you be inundated with paper begging you to sell them back?
I still have all my bullets from the Y2K apocalypse, you think they are still good?
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