Sara R Posted October 9, 2008 Share Posted October 9, 2008 http://finance.google.com Most indexes down 7% today so far. And this is after it dropped about 3% each day this week (if I recall correctly). S&P 500 has gone down over 18% in just 5 days, and it's down over 40% from its peak in October. Quote Link to comment Share on other sites More sharing options...
Pam "SFSOM" in TN Posted October 9, 2008 Share Posted October 9, 2008 http://finance.google.com Most indexes down 7% today so far. And this is after it dropped about 3% each day this week (if I recall correctly). S&P 500 has gone down over 18% in just 5 days, and it's down over 40% from its peak in October. I just yelled out loud when I turned on the computer. Wow. Quote Link to comment Share on other sites More sharing options...
Colleen Posted October 9, 2008 Share Posted October 9, 2008 http://finance.google.com Most indexes down 7% today so far. And this is after it dropped about 3% each day this week (if I recall correctly). S&P 500 has gone down over 18% in just 5 days, and it's down over 40% from its peak in October. Studying the numbers on an hourly basis serves no purpose. Doing so only reinforces lack of confidence in the markets. Quote Link to comment Share on other sites More sharing options...
Renee in NC Posted October 9, 2008 Share Posted October 9, 2008 Studying the numbers on an hourly basis serves no purpose. Doing so only reinforces lack of confidence in the markets. Yes, but the almost 6000 point drop since last October is something to ponder, even if you have no stocks. Quote Link to comment Share on other sites More sharing options...
HRAAB Posted October 9, 2008 Share Posted October 9, 2008 I wish I could be nonplussed by all of it. Unfortunately, it's hurting. No, it's HURTING! Ouch. Okay, feel a little better now. Janet Quote Link to comment Share on other sites More sharing options...
Renee in NC Posted October 9, 2008 Share Posted October 9, 2008 I wish I could be nonplussed by all of it. Unfortunately, it's hurting. No, it's HURTING! Ouch. Okay, feel a little better now. Janet It's also a barometer of our business.:glare: Quote Link to comment Share on other sites More sharing options...
HRAAB Posted October 9, 2008 Share Posted October 9, 2008 It's also a barometer of our business.:glare: This is so true. The other day my dh and I were driving one of the big streets with lots of small businesses. I was wondering how many would be there 6 mos. or 1 yr. from now. Janet Quote Link to comment Share on other sites More sharing options...
Renee in NC Posted October 9, 2008 Share Posted October 9, 2008 This is so true. The other day my dh and I were driving one of the big streets with lots of small businesses. I was wondering how many would be there 6 mos. or 1 yr. from now. Janet Probably not near as many as there are now. I know where my mother lives in FL has seen TONS of businesses close. Things were bad there a year or more ago. It's only been about 6 months here and it keeps getting better, not worse. Quote Link to comment Share on other sites More sharing options...
Once Posted October 9, 2008 Share Posted October 9, 2008 I think there is wisdom in not panicking....the more panic there is the worse it will get. We are staying in for the long haul....that is the only way we can guarantee that we get in at the bottom price. If I had extra cash, I might even consider buying right now. We live in interesting times that is for sure. Quote Link to comment Share on other sites More sharing options...
Elaine Posted October 9, 2008 Share Posted October 9, 2008 Trading right now is not for the faint of heart. I bought one little option, to the downside, a few weeks ago and make over $500. I also bought SPY to the down side and made significantly more than $500, but it is nerve wracking. With sharp declines come even sharper rallies that can wipe you out. Quote Link to comment Share on other sites More sharing options...
hornblower Posted October 9, 2008 Share Posted October 9, 2008 We're buying. Not a huge amount - but then we never gamble more than we can lose - but buying nevertheless. Quote Link to comment Share on other sites More sharing options...
Carol in Cal. Posted October 9, 2008 Share Posted October 9, 2008 Around here there are 3 businesses that I know of personally which have closed because their business bank pulled their line of credit. It's so weird to have that happen in an era of low interest rates, but there you have it. Many businesses rely on lines of credit to be able to stock and replenish their inventory. These three--2 car dealerships and one running shoe/exercise wear store--were unable to weather the lack of credit, so they had to close. Timing is everything. Certainly the stock market tends to effect consumer spending, and so does the real estate market. When people 'feel' rich and optimistic, they tend to spend more on consumer items--that's what 'consumer confidence' is all about. Quote Link to comment Share on other sites More sharing options...
Tracey in TX Posted October 9, 2008 Share Posted October 9, 2008 If you had purchased $1,000 of shares in Delta Airlines one year ago, you will have $49.00 today. If you had purchased $1,000 of shares in AIG one year ago, you will have $33.00 today. If you had purchased $1,000 of shares in Lehman Brothers one year ago, you will have $0.00 today. But, if you had purchased $1,000 worth of beer one year ago, drank all the beer, then turned in the aluminum cans for recycling refund, you will have received $214.00. Based on the above, the best current investment plan is to drink heavily & recycle. It is called the 401-Keg. A recent study found that the average American walks about 900 miles a year. Another study found that Americans drink, on average, 22 gallons of alcohol a year. That means that, on average, Americans get about 41 miles to the gallon! Makes you proud to be an American! fwiw, I don't take the stock market lightly, but don't have the emotional fortitude to keep track of our funds. We've lost so much money recently and have to keep my motto If it's not cash, it's not really money at the forefront of my brain to avoid a meltdown. I handle negative situations with humor! Quote Link to comment Share on other sites More sharing options...
Amy loves Bud Posted October 9, 2008 Share Posted October 9, 2008 I just yelled out loud when I turned on the computer. Wow. Me too! I yelled, "BUY!" :D Quote Link to comment Share on other sites More sharing options...
Colleen Posted October 9, 2008 Share Posted October 9, 2008 I(I)f you hadpurchased $1,000 worth of beer one year ago, drank all the beer, then turned in the aluminum cans for recycling refund, you will have received $214.00. Based on the above, the best current investment plan is to drink heavily & recycle. It is called the 401-Keg. A recent study found that the average American walks about 900 miles a year. Another study found that Americans drink, on average, 22 gallons of alcohol a year. That means that, on average, Americans get about 41 miles to the gallon! Makes you proud to be an American! Woo hoo! Makes me downright patriotic.:lol: Quote Link to comment Share on other sites More sharing options...
Colleen Posted October 9, 2008 Share Posted October 9, 2008 1) Land 2) Foreign currencies 3) Gold Or go the 401-Keg route Tracey mentioned below.;) Quote Link to comment Share on other sites More sharing options...
Perry Posted October 9, 2008 Share Posted October 9, 2008 Okay, I'm a dummy when it comes to money. How does one go about buying gold, exactly? Quote Link to comment Share on other sites More sharing options...
Jenny in Atl Posted October 9, 2008 Share Posted October 9, 2008 1) Land 2) Foreign currencies 3) Gold Or go the 401-Keg route Tracey mentioned below.;) Actually gold is not doing as well as it has been, and foreign governments have been buying dollars the last few days. I think a wait and watch pattern is best unless you need your $ right now. The market will go back up, it just will take a little time. Quote Link to comment Share on other sites More sharing options...
suzf242 Posted October 9, 2008 Share Posted October 9, 2008 How does one go about buying gold, exactly? Or silver. http://www.apmex.com/ Quote Link to comment Share on other sites More sharing options...
Renai Posted October 9, 2008 Share Posted October 9, 2008 Okay, I'm a dummy when it comes to money. How does one go about buying gold, exactly? Actually, gold is not a good investment. Quote Link to comment Share on other sites More sharing options...
Colleen Posted October 9, 2008 Share Posted October 9, 2008 Actually gold is not doing as well as it has been, and foreign governments have been buying dollars the last few days. I think a wait and watch pattern is best unless you need your $ right now. The market will go back up, it just will take a little time. Yep, wait and watch is the best medicine. Of course, anyone who needs their money "right now" shouldn't have it in the stock market anyway. I personally am not a fan of investing in Wall Street, thus the alternatives I suggested above. Quote Link to comment Share on other sites More sharing options...
Perry Posted October 9, 2008 Share Posted October 9, 2008 What if there is extra cash, though? Because of some unusual circumstances, we will receive a substantial amount of extra cash over the next few weeks. It's not a fortune, but it's far too much to just let it sit in the bank. I'm pretty sure we need to do *something* with it before the first of the year, or we'll be losing almost half of it to taxes. I'm not thrilled about putting it into the stock market, and I don't know if I want the hassle associated with buying real estate. Quote Link to comment Share on other sites More sharing options...
Ellie Posted October 10, 2008 Share Posted October 10, 2008 It'll bounce back. It's been this low before. Quote Link to comment Share on other sites More sharing options...
sticer Posted October 10, 2008 Share Posted October 10, 2008 Our newspaper says that even the large businesses are not doing so great. It's a little scary. Quote Link to comment Share on other sites More sharing options...
Renai Posted October 10, 2008 Share Posted October 10, 2008 What if there is extra cash, though? Because of some unusual circumstances, we will receive a substantial amount of extra cash over the next few weeks. It's not a fortune, but it's far too much to just let it sit in the bank. I'm pretty sure we need to do *something* with it before the first of the year, or we'll be losing almost half of it to taxes. I'm not thrilled about putting it into the stock market, and I don't know if I want the hassle associated with buying real estate. No, you don't "need" to do anything with it if you're not sure what to do. If you don't know, park it in the bank and get advice. If an advisor says the stock market, run far away- it's just not smart to gamble. How about finding an advisor off the Dave Ramsey website: http://www.daveramsey.com. Do you have any debt? How about paying it off or down? Retirement account? Pay off the house? Do you already have an easily-accessible emergency fund (1-3 months in a money market or savings account)? I guess it also depends on where the money is coming from and why you would lose so much to taxes. If it comes from a retirement account, it should be rolled over into another one. But I'd suggest a professional advisor, cuz I'm not one :tongue_smilie:, just a Dave Ramsey listener. Quote Link to comment Share on other sites More sharing options...
jmgconner Posted October 10, 2008 Share Posted October 10, 2008 I figured someone bumped this up because of what it's doing right now. It's possible it'll close under 8000 today. Quote Link to comment Share on other sites More sharing options...
Robin in Tx Posted October 10, 2008 Share Posted October 10, 2008 Hilarious!!! Quote Link to comment Share on other sites More sharing options...
Colleen Posted October 10, 2008 Share Posted October 10, 2008 I figured someone bumped this up because of what it's doing right now. It's possible it'll close under 8000 today. The S&P 500 index saw a huge (neighborhood of 50%) drop in the first couple of years of the current administration. The stock market has been artificially inflated for years now and anyone in their right mind anticipated a bear market. Quote Link to comment Share on other sites More sharing options...
jmgconner Posted October 10, 2008 Share Posted October 10, 2008 The S&P 500 index saw a huge (neighborhood of 50%) drop in the first couple of years of the current administration. The stock market has been artificially inflated for years now and anyone in their right mind anticipated a bear market. I agree, no reason to panic. We're in for the long haul and hoping to buy more with the money we do have in there. It's just fascinating to me to watch it all. Quote Link to comment Share on other sites More sharing options...
Colleen Posted October 10, 2008 Share Posted October 10, 2008 What if there is extra cash, though? Because of some unusual circumstances, we will receive a substantial amount of extra cash over the next few weeks. It's not a fortune, but it's far too much to just let it sit in the bank. I'm pretty sure we need to do *something* with it before the first of the year, or we'll be losing almost half of it to taxes. I'm not thrilled about putting it into the stock market, and I don't know if I want the hassle associated with buying real estate. If you have outstanding debt, this cash isn't "extra", of course; it should go toward that debt. If that's not an issue, and if you don't want to tie up the funds, you might put it into some short-term CDs. But ya know, letting it sit in the bank, isn't necessarily a bad thing. And foreign accounts, like I said before, are an option ~ maybe. I think Switzerland recently changed their banking rules such that you have to be there in person to open an account. Quote Link to comment Share on other sites More sharing options...
Perry Posted October 10, 2008 Share Posted October 10, 2008 Thanks for your advice. We're in pretty good shape financially, although we could pay down the mortgage. I don't want to let it sit in the bank for long, because I'm afraid it will be too easy to spend it if it's accessible. I guess we need an adviser. Quote Link to comment Share on other sites More sharing options...
Colleen Posted October 10, 2008 Share Posted October 10, 2008 I agree, no reason to panic. We're in for the long haul and hoping to buy more with the money we do have in there. It's just fascinating to me to watch it all. Yep, it fascinates me, too ~ but I admit it's easier for me to watch since I have no directly vested interest. Like I said before, I've never been drawn to play on Wall Street.:) Quote Link to comment Share on other sites More sharing options...
jmgconner Posted October 10, 2008 Share Posted October 10, 2008 Yep, it fascinates me, too ~ but I admit it's easier for me to watch since I have no directly vested interest. Like I said before, I've never been drawn to play on Wall Street.:) I admit, I haven't looked at our 401k mutual fund statements since this all started happening. :) Little tangent: Kai is FOUR?!!! I remember you posting when he was born. Happy Birthday! Quote Link to comment Share on other sites More sharing options...
Sara R Posted October 10, 2008 Author Share Posted October 10, 2008 The S&P 500 index saw a huge (neighborhood of 50%) drop in the first couple of years of the current administration. S&P 500 is down 45% since the high this time last year. S&P is down 13.38% over the past 10 years. This is significant because the common sense advice from financial planners for years is that if you invest in the stock market for long term (defined as 5 to 10 years), making money is virtually assured. This is the first time that the S&P 500 has been down over a 10 year "long term" time horizon. It's also significant because it takes a higher percentage gain to make up for big losses. For example, to make up for a 13.38% loss you need a 15.4% gain. Quote Link to comment Share on other sites More sharing options...
Colleen Posted October 10, 2008 Share Posted October 10, 2008 S&P 500 is down 45% since the high this time last year. As I said, the index of major stocks was down close to 50% over the first couple years of this century. S&P is down 13.38% over the past 10 years. This is significant because the common sense advice from financial planners for years is that if you invest in the stock market for long term (defined as 5 to 10 years), making money is virtually assured. This is the first time that the S&P 500 has been down over a 10 year "long term" time horizon. "Long term" in the market is not five years. Quote Link to comment Share on other sites More sharing options...
Renee in NC Posted October 10, 2008 Share Posted October 10, 2008 As I said, the index of major stocks was down close to 50% over the first couple years of this century. "Long term" in the market is not five years. From 2000-2001, it went down 2% 2001-2002, down 17% 2002-2003, down 22% 2003-2004, up 25% It was never down 50% during this administration. Quote Link to comment Share on other sites More sharing options...
Sara R Posted October 10, 2008 Author Share Posted October 10, 2008 "Long term" in the market is not five years. I'm just quoting what I hear the financial advisers say all the time on Clark Howard and Dave Ramsey. "97% of 5-year periods in the stock market are positive. 100% of the 10-year periods in the stock market are positive." They tell retired people not to take all of their money out at retirement, because they will be alive longer than 5-10 years, so they "need that money to grow" for that time. Watching this unfold, I see that I disagree. I won't invest in the stock market until I have paid off my house and have done all I can to reduce further expenses. That's a way of saving for retirement as well. I may plan for my retirement savings to be built with normal bank rates of interest rather than higher stock market rates. Quote Link to comment Share on other sites More sharing options...
Perry Posted October 10, 2008 Share Posted October 10, 2008 If you have outstanding debt, this cash isn't "extra", of course; it should go toward that debt. If that's not an issue, and if you don't want to tie up the funds, you might put it into some short-term CDs. But ya know, letting it sit in the bank, isn't necessarily a bad thing. And foreign accounts, like I said before, are an option ~ maybe. I think Switzerland recently changed their banking rules such that you have to be there in person to open an account. The mortgage is our only debt. Is paying off the mortgage better than investing the money? Quote Link to comment Share on other sites More sharing options...
Renee in NC Posted October 10, 2008 Share Posted October 10, 2008 The mortgage is our only debt. Is paying off the mortgage better than investing the money? I would. THEN start investing what you were spending on mortgage payments. You still come out ahead! Quote Link to comment Share on other sites More sharing options...
Colleen Posted October 12, 2008 Share Posted October 12, 2008 The mortgage is our only debt. Is paying off the mortgage better than investing the money? Yes....in my opinion, yada yada yada.;) Quote Link to comment Share on other sites More sharing options...
Colleen Posted October 12, 2008 Share Posted October 12, 2008 It was never down 50% during this administration. Hmmm, well....yes, it was. Perhaps we're crunching different numbers. The S&P 500 endured a post-9/11, post-dot.com bubble back in 2001. It dipped close to 50% at that time. The Nasdaq and the Dow went dipped significantly then as well. Quote Link to comment Share on other sites More sharing options...
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