[Son House]

This is about where I am at investment wise too, so I thought it a good discussion for those of us who are not getting completely out of the market, yet. Just to clarify, I am only a small 401k investor and this is not me, but I'll have to say he's thinking along similar lines;

About SonOfAbba's channel => Investor, entrepreneur, libertarian-leaning Christian.

[Son House]

He’s got more good stuff too, in this one he points out what is wrong with Democrat Economist, I hope he catches on with some conservative talk show host, a much better guest then all the ones the media likes to get for the ‘unexpected’ headlines;

http://www.youtube.com/watch?v=1KFnM6iSsSQ&list=UUvgqC_r_dg5VMDLaF9FDhIg&index=1&feature=plpp_video

Here’s all his video’s;
http://www.youtube.com/playlist?list=UUvgqC_r_dg5VMDLaF9FDhIg&feature=plcp

[Vince Ferrer]

I am getting out of the stock market entirely until it starts obeying the rule of law. If I see some laws regarding segregating customer funds, and rehypothecation, and people actually getting arrested and going to jail. then I’ll consider going back. Until then, I am going to look for ways to invest which are not run out of Wall street.

[Jumper]

Decent positions, especially the energy 25% and Metals 25%; I have this and cash. My strategy is just to be in energy stocks and metals, with a 50% position in cash; except for a govt 401K which is 100% cash. Having seen the results of both Gulf War stock crashes, and the 2000 and 2007 meltdowns, I think that this position allows me right the markets up with holdings, dump them high and then buy your commodity stocks and anything else that drops 40% plus that I fancy and watch my profolio double on both ends of the bounce. The best part is if you are investing retirement accounts there is no capital gains tax!

[willgolfforfood]

This seems like perfectly reasonable advice. Let's see what happened as we compare the high range of prices in 2008 vs. the bottom of the crash in early 2009. I will also toss in some recent prices, just for those who like a "buy and hold" strategy.

ENERGY:

Chevron: 2008 High = 85 // Crash Low = 50. . . but recently at 110

Conoco-Phillips: 2008 High = 60 // Crash Low = 23

Exxon: 2008 High = 85 // Crash Low = 55

So "Energy" lost you at least 40%, on paper

PRECIOUS METALS

GLD: 2008 High = 100 // Crash Low = 70

SLV: 2008 High = 20 // Crash Low = 8

Metals got you on average about a 50% haircut.

SAFETY STOCKS:

JNJ: 2008 High = 62 // Crash Low = 40

KO*: 2008 High = 28 // Crash Low = 17 (But recently 40)

WMT: 2008 High = 55 // Crash Low = 43 (But recently 70)

P&G: 2008 High = 65 // Crash Low = 40

MCD: 2008 High = 60 // Crash Low = 41 (But recently 90)

Full Disclosure: I have owned every investible on this list. As of this moment, I probably have half of these in some account - whether a retirement account. . . . or not.

Virtually EVERYTHING on this list lost at least 30% on paper. That's a small crash, by historical standards.

Maybe you can sleep like a baby while the value of your portfolio loses 30% - 50% in a few weeks. If so, you're made of sterner stuff than me. I have stops under all my positions.

And remember - when you sleep like a baby, you wake up every hour ------ CRYING!!

* NOTE: KO has JUST split 2 for 1. So these prices were about double the prices in my post, back in 2008/2009.

(Just something to think about. your mileage may vary)

[rbg81]

Ok. What’s this kid’s track record again??

I agree with some of his picks, especially the ones that pay dividends. At least you get paid to put up with the volatility.