Carnage
Dow at 12597
Nasdaq at 2405
S&P at 1378
Oil, gold, silver and copper are down big time... WTF... and so much for VMW IPO fever.
Diversification is my hedge supposedly... but even the global markets are down. There really is no where to hide. Might be time to move into cash? But if I do that I know the market will rally after. If I don't, I just know the market will continue to slide. It happens to me all the time. Whenever I time the market, the opposite desired outcome always occurs! I know I should just "stick to the plan" but it really is easier said than done.
One thing I learned from all of this is that even money market funds are not safe if they are backed by mortgage related CDOs (vs FDIC).
Nasdaq at 2405
S&P at 1378
Oil, gold, silver and copper are down big time... WTF... and so much for VMW IPO fever.
Diversification is my hedge supposedly... but even the global markets are down. There really is no where to hide. Might be time to move into cash? But if I do that I know the market will rally after. If I don't, I just know the market will continue to slide. It happens to me all the time. Whenever I time the market, the opposite desired outcome always occurs! I know I should just "stick to the plan" but it really is easier said than done.
One thing I learned from all of this is that even money market funds are not safe if they are backed by mortgage related CDOs (vs FDIC).
posted by baconandeggs at 9:32 AM
2 Comments:
i think you and i need to take decisive action to stabilize the economy. whenever i, like you, invest in the market, it always slides. if i go cash, the market booms. so, here's my proposal: we take turns, you invest in the market, i'll go cash and then i'll invest in the market and you go cash. our luck will offset each other and the market will be a safe place for everyone.
i think i will be the one making you rich :-P
seriously, the problem with going into cash is not just knowing when to get out but also when to come back into the market. just as watching your portfolio take a nose dive on the bears, missing a key market rally day(s) is also painful.
i think what i've learned about myself in going through all these gyrations is that in order for me to sleep better at night, i should try to focus more on getting quality securities, periodically ask myself "is there is anything fundamentally different about this investment today vs the day I bought it?," and if the answer to this previous question is "no" I should accumulate more on weakness.
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