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Where are you investing?
September 25, 2008 | me

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.


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1 posted on 09/25/2008 6:47:47 AM PDT by reaganaut1
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To: reaganaut1

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)


2 posted on 09/25/2008 6:50:44 AM PDT by Tenacious 1 (Democrats are for Change - Let's run through a mine field at night wearing clown shoes!)
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To: reaganaut1

Remember a stock loss is still just a paper loss unless you sell...over the long haul the market has proved solid.


3 posted on 09/25/2008 6:51:08 AM PDT by meandog (please pray for future President McCain, day minus 130-Jan. 20--and counting)))
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To: reaganaut1

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.


4 posted on 09/25/2008 6:51:51 AM PDT by Slapshot68
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To: reaganaut1

Think Exchange Traded Funds (ETF): focus on Water, Agriculture, Energy, Emerging Markets.


5 posted on 09/25/2008 6:53:11 AM PDT by MarkT
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To: reaganaut1

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.


6 posted on 09/25/2008 6:54:01 AM PDT by CaraM
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To: reaganaut1

I’m thinking of investing in petroleum jelly futures because I think the need for it is fixing to become quite dire.


7 posted on 09/25/2008 6:55:27 AM PDT by cripplecreek (Paying taxes for bank bailouts is apparently the patriotic thing to do. [/sarc])
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To: reaganaut1
I am being inundated with prospectuses that encourage buying gold coins. Unfortunately I am in quandary about whether or not to buy.

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?

8 posted on 09/25/2008 6:55:48 AM PDT by IbJensen (Ali Bama isn't going to make it!)
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To: MarkT

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.


9 posted on 09/25/2008 6:57:16 AM PDT by Oldexpat (Drill Here, Drill There..we must drill everywhere.)
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To: reaganaut1
Exchange Traded Funds, aka: ETFs.

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.

10 posted on 09/25/2008 6:57:32 AM PDT by Republican Extremist
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To: reaganaut1

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!


11 posted on 09/25/2008 6:58:11 AM PDT by housedeep
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To: reaganaut1

real estate.

when housing is low, you buy it.

inflation ALONE will take the prices up


12 posted on 09/25/2008 6:59:09 AM PDT by Mr. K (Some days even my lucky rocketship underpants don't help)
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To: reaganaut1

guns and booze. In preparation for the zombie apocalypse, of course.


13 posted on 09/25/2008 7:00:27 AM PDT by CarWashMan
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To: reaganaut1

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.


14 posted on 09/25/2008 7:00:52 AM PDT by AmericanMade1776 ( Our Mamma beats your Obama)
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To: reaganaut1

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.


15 posted on 09/25/2008 7:00:54 AM PDT by mnehring
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To: housedeep

Shares in local bank. Wal-Mart stock.


16 posted on 09/25/2008 7:01:14 AM PDT by WVNan
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To: reaganaut1

I just want to get the same deal as Jamie Gorelick did from Countrywide. Did anyones else see today’s Wall St. Journal?


17 posted on 09/25/2008 7:02:15 AM PDT by 12Gauge687 (Extremism in the defense of liberty is no vice)
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To: cripplecreek
Thanks to the homosexuals and their agenda (supported by many of the 535 idiots in Congress) the demand for KY Jelly will increase dramatically.

(We taxpayers should look at investing in companies that manufacture hemerrhoid medication.)

18 posted on 09/25/2008 7:02:45 AM PDT by IbJensen (Ali Bama isn't going to make it!)
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To: IbJensen; reaganaut1
I am being inundated with prospectuses that encourage buying gold coins.

So...when you're ready to sell, good or bad, will you be inundated with paper begging you to sell them back?

19 posted on 09/25/2008 7:03:23 AM PDT by sam_paine (X .................................)
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To: CarWashMan
CarWashMan wrote: guns and booze. In preparation for the zombie apocalypse, of course.

I still have all my bullets from the Y2K apocalypse, you think they are still good?

20 posted on 09/25/2008 7:04:43 AM PDT by AmericanMade1776 ( Our Mamma beats your Obama)
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