don`t be bitter about a small beatdown in political,scottie...it`s not the first and won`t be the last...:toast:
Question For Any Financial Advisors
- Thread starter BuffaloBill
- Start date
beatdown
lets see , we got Obama
you got Sarah Palin and that Jingel guy
oh and Rush Limbaugh and Neil bortz and Hannity
and that man child Coulter
good luck with that
:142smilie
lets see , we got Obama
you got Sarah Palin and that Jingel guy
oh and Rush Limbaugh and Neil bortz and Hannity
and that man child Coulter
good luck with that
:142smilie
I am a financial advisor and over the last year or so I stopped buying mutual funds for my clients.
If my clients now want to be int he market, I buy them FDIC insured prinicpally protected notes/CD's that many investment banks are now building and selling.
For instance, you might be able to buy a 5 year CD linked to the S&P 500 Index. If you hold the CD until it matures, you get the index return if positive. If negative, then you get your money back.
Not to try and defend being an advisor, but most people don't or can't access many of these type of investments.
Just an idea to help.
If my clients now want to be int he market, I buy them FDIC insured prinicpally protected notes/CD's that many investment banks are now building and selling.
For instance, you might be able to buy a 5 year CD linked to the S&P 500 Index. If you hold the CD until it matures, you get the index return if positive. If negative, then you get your money back.
Not to try and defend being an advisor, but most people don't or can't access many of these type of investments.
Just an idea to help.
if you do not own your home - pay it off if you can. if the dollar does nose dive at least you can't be evicted if you pay the property taxes....
my dad has lost so much in the stock market i will never invest in it. it is easier to bet on football.
gl.
my dad has lost so much in the stock market i will never invest in it. it is easier to bet on football.
gl.
A lot of you guys make some very good points, but to be honest, I am scared to do either one.
I am scared to let my money sit there for obvious reasons, and I am scared to take it out for fear that it will come back strong soon.
Nobody KNOWS that this is going to continue to tank. One can only speculate.
For all we know, this thing can have an end of the year rally that takes it back to 10,000.
Anything is possible, and this is what makes it such a hard decision.
Anyway, thanks to all of you who responded, I appreciate it.
BB
I am scared to let my money sit there for obvious reasons, and I am scared to take it out for fear that it will come back strong soon.
Nobody KNOWS that this is going to continue to tank. One can only speculate.
For all we know, this thing can have an end of the year rally that takes it back to 10,000.
Anything is possible, and this is what makes it such a hard decision.
Anyway, thanks to all of you who responded, I appreciate it.
BB
...................................................................
somehow I doubt that happens.
Because as soon as it got close to that level , those of us that have taken the hit would dump it like a bad thought and cash it the fawk out.
then it would go down under 5,000
My financial guy agrees 100% with this - he said "the market hates Obama". He has moved me to all fixed assets and High Yield Bonds. His firm feels the market will be at 5500 in no time and we are heading deep into recession.
His main arguments are that Obama has caused so much uncertainty out there, especially in the market. Along with a radical budget, that will further devalue the dollar and be inflationary (his growth projections over the next 2 years are way too optimistic - and we'll be really in trouble.
My advisor's biggest concern? The tax increases, and itemized deduction increases on the "rich". Sounds nice (especially if you are not in the top 5%) but he said the truth of the matter is, 50% of the "rich" are small business owners that file individual tax returns (think LLC's, etc). These small business owners will not be able to afford to hire employees - and will start doing the opposite.
His view - uemployment will be north of 10% - well before these tax increases are implemented in 2011 - as small business begins to prepare for the higher tax rates.
Just HIS honest opinion - and frankly, I can see where he's coming from.
BB. Do you understand what this guy has your money in. If not find out and start reading everything you can about it. Even tho you hired this guy you should have good understanding what and why. Most everyone is down 30 to 50% Unless you were 75% in cash. I who am retired was only 55% in cash. You should do what LETS YOU SLEEP at night. Your man should have asked you when you started what your stoploss point was. Thats where you get out and sit on side line and wait for better times. And when you start back in you don't do it all at once. Cost average it back in over a 12 to 18 month period.
I believe if this felllow had guts to charge you more then 1.5% fire him. Get help from a hourly base pro.
I believe if this felllow had guts to charge you more then 1.5% fire him. Get help from a hourly base pro.
it will kill the local independent electrical contractors here in memphis, and the unionizing of these guys is a threat as well.
Mags,
What happens if you are in bonds and the market begins to recover?
Does your advisor think that he is going to time the market?
When would he put you back into the market?
One thing I do know, is that nobody can time the market, so I really don't see how that strategy will work.
In my opinion, I have to decide - either I'm in the market or I'm out.
Going in and out is just like gambling in my opinion.
Then I might as well throw it on some football games.
Thanks.
BB
What happens if you are in bonds and the market begins to recover?
Does your advisor think that he is going to time the market?
When would he put you back into the market?
One thing I do know, is that nobody can time the market, so I really don't see how that strategy will work.
In my opinion, I have to decide - either I'm in the market or I'm out.
Going in and out is just like gambling in my opinion.
Then I might as well throw it on some football games.
Thanks.
BB
DJV,
I am 40% in bonds, and 60% in equities.
I pay him 1%.
He feels that it is impossible to time the market so I have to stay in it for the long haul.
In his opinion, he thinks that the market will also recover a lot sooner than many people think.
If he really thought that this thing was going to keep going down, then he would have me in cash, but he feels that it can go up just as easily as it can go down.
He said that he has never met anyone who can time the market.
Look at Warren Buffet. He was buying when the market was at 8500, and in the long run he will probably make money.
Thanks for the help.
BB
I am 40% in bonds, and 60% in equities.
I pay him 1%.
He feels that it is impossible to time the market so I have to stay in it for the long haul.
In his opinion, he thinks that the market will also recover a lot sooner than many people think.
If he really thought that this thing was going to keep going down, then he would have me in cash, but he feels that it can go up just as easily as it can go down.
He said that he has never met anyone who can time the market.
Look at Warren Buffet. He was buying when the market was at 8500, and in the long run he will probably make money.
Thanks for the help.
BB
BB - I asked him that very question. It IS impossible to perfectly time the market. However, he feels very strongly that the housing and credit markets will be leading indicators.
Once we start to see home sales bottoming out and start trending up (and we haven't seen that), THEN we'll start moving back into the market.
He really thinks that is AT LEAST 18 months out. I'd rather miss on all the downside to come, and miss a LITTLE upside, than stay in the market now.
Obama's budget, projected tax increases, etc are really hurting the market. Some would say much of that is priced in - I disagree personally. Most intelligent folks would describe Obama's plans at best as being "Radical", and some would consider them "Suicidal".
Whether is has been a Republican or Democrat run government, we've always seen historically that government does not run things as well as the private sector. So does anyone believe that the government can do all that Obama is proposing it to do? I don't.
I'm on the sidelines - I'll wait. At least for more certainty on how radical the changes are - which is exactly, I think, what Wall Street is watiing for.
B B I agree you cant time market. But you can protect a good amount of your money. And get back in market by cost averaging. You do not have to let it free fall. BUT again You have to be able to sleep at night. After all everyone is diffeant. I hope it all works out for you. Maybe I should say US. These are dam tough times. Best of Luck.
I sold everything I had in stocks this morning right before it tanked under 7000 headed to 5000
fawk the stock market.
I got to find a safer place to put my money
fawk the stock market.
I got to find a safer place to put my money
That's what I did Friday. Good move.
It is possible that the market will not recover until Obama is out of office. And if the market keeps going like it is, it will only take 4 years.
You can't keep pounding on Wall Street and small business (which IS linked to some degree) and expect it to perform.
It's not a mad idea to be 50/60% in cash. At least then you will have something left to get back in. That,s if you feal you had enough or want all out.
Spoke to my accountant, my lawyer, and a few people in financial markets, over the past couple days.
The one thing that they ALL agree on is that this is the absolute WORST time for me to sell my stocks.
In their opinion, even if stocks continue to go lower from here, in the long run I will be ahead.
Even if things are bad for the next few years, they ALL agree that when the market finally does rally, it will be a good one.
Meanwhile, I still have 40% of my portfolio in bonds, so that should get me through the rough period with my equities.
Thanks again to all who have responded.
BB
The one thing that they ALL agree on is that this is the absolute WORST time for me to sell my stocks.
In their opinion, even if stocks continue to go lower from here, in the long run I will be ahead.
Even if things are bad for the next few years, they ALL agree that when the market finally does rally, it will be a good one.
Meanwhile, I still have 40% of my portfolio in bonds, so that should get me through the rough period with my equities.
Thanks again to all who have responded.
BB
probably is the worst time to sell, as market seems to be near bottom. But who knows?
Those same folks preaching you to hold stocks for long haul and "you can't time markets" are in fact timing the market by saying this is "worst" time.
problem is could be lot more than a few years for you to recover.....You will be ahead in the long run, no doubt, but it could be awfully long.
1929 stock market crash, bottoming out in 1932 with DJIA losing 89% of value (to levels last seen in 1880s), didn't recover the pre-1929 levels until 1954.
tho more recent:
1974 DJIA lost 45% of value and didn't see the same level (adjusted for inflation) until August 1993. That's 19 years!
Black Monday (1987) crash, about 31% of DJIA value lost, took 2 years to recover.
Neal Frankle wrote a book on whats wrong with traditional "buy-and-hold" long-term stock strategy "Why Smart People Lose a Fortune"
Those same folks preaching you to hold stocks for long haul and "you can't time markets" are in fact timing the market by saying this is "worst" time.
problem is could be lot more than a few years for you to recover.....You will be ahead in the long run, no doubt, but it could be awfully long.
1929 stock market crash, bottoming out in 1932 with DJIA losing 89% of value (to levels last seen in 1880s), didn't recover the pre-1929 levels until 1954.
tho more recent:
1974 DJIA lost 45% of value and didn't see the same level (adjusted for inflation) until August 1993. That's 19 years!
Black Monday (1987) crash, about 31% of DJIA value lost, took 2 years to recover.
Neal Frankle wrote a book on whats wrong with traditional "buy-and-hold" long-term stock strategy "Why Smart People Lose a Fortune"
