LIMIT DOWN (Capitulation)

[Antique Hoosier]

Today should be an interesting day in the financial markets. On a positive (?) note, Oil is making new lows...as OPEC decides to reduce supply. Gold falling...US dollar rising. Strange days indeed!

[scoopster]

I'm just trying to figure out how low I should let it go before I get some cash into the market. I may be getting too greedy waiting, we'll see.

[infotech]

Today should be an interesting day in the financial markets. On a positive (?) note, Oil is making new lows...as OPEC decides to reduce supply. Gold falling...US dollar rising. Strange days indeed!

Why? That really sucks :mad: We're at 2.23 a gallon and dropping...

[Antique Hoosier]

Watch the first and last hour of trading today. Should be better than Netflix!

[Bobtrumpet]

FWIW, OPEC generally overproduces above it's self-imposed quotas by about 500,000 bbl per day.

http://mjperry.blogspot.com/2008/10/opec-cheats-they-overproduce-by-500000.html

[patrisVII]

The world is seeing the US Central bank as the 'savior' of this current situation. Most other central banks are moving in lock step with the Fed. Also many European nations are in a much more precarious position, capital-wise, than the US. All this adds up to a preference for the dollar worldwide. It is rising against other currencies and most commodities.

Now, keep in mind that the Fed is pursuing a policy of agressive money injection right now (possibly even more than they did a few years ago). At some point, other central banks will not desire (or be able) to keep pace and the dollar will very quickly devalue. We will be back to $1K gold and $4 gas soon enough (I expect early next year).

If you could get your hands on the actual physical assets, buying gold makes sense now, but it's just not available. The government mints aren't striking new gold (there are a few theories regarding this) and the secondary market is very dry. If you can find it, it buy it.

Also, the catch-as-catch-can response by the Fed/Treasury/administration is not building any confidence on the capital side of the house. The longer this schizophrenic behavior by the US gov continues, the more likely distrust in the dollar will develop.

It will be a very interesting lame duck presidency to say the least.

[letterk]

My company meets Q3 numbers but reduces Q4 forecast by .3% and the stock nosedives 30% over two days. This is already on top of a 25% loss over the past few weeks. Figure that one out. Those options aren't looking so good, now!

[scoopster]

My company meets Q3 numbers but reduces Q4 forecast by .3% and the stock nosedives 30% over two days. This is already on top of a 25% loss over the past few weeks. Figure that one out. Those options aren't looking so good, now!

Options... "Golden handcuffs" when the stock is doing well. Not so good at employee retention when the times are bad.

[letterk]

Options... "Golden handcuffs" when the stock is doing well. Not so good at employee retention when the times are bad.

Luckily, options are only one of many golden handcuffs where I work.

[Dr. Mike]

I follow Dave Ramsay's advice here. Should you buy in now? Why? For a good long term investment? Sure. Prices are low, so you can get some good deals - great deals. Just looking for a quick deal? Trying to predict the bottom and the top? I think he said the other day that anybody who thinks they can is a fool. There are people who have been at this their whole lives who can't do it. Someone new to the market who has read a few books and thinks they can do it is going to be taken to the cleaners. Market investing is best done long term.

[letterk]

I follow Dave Ramsay's advice here. Should you buy in now? Why? For a good long term investment? Sure. Prices are low, so you can get some good deals - great deals. Just looking for a quick deal? Trying to predict the bottom and the top? I think he said the other day that anybody who thinks they can is a fool. There are people who have been at this their whole lives who can't do it. Someone new to the market who has read a few books and thinks they can do it is going to be taken to the cleaners. Market investing is best done long term.

Agreed. I'm not changing my strategy, and will continue to dollar cost average and rebalance along the way. I'm a long way from retirement, so except for complete collapse of the world economy, this will end up being good for my retirement balance.

[scoopster]

Agreed. I'm not changing my strategy, and will continue to dollar cost average and rebalance along the way. I'm a long way from retirement, so except for complete collapse of the world economy, this will end up being good for my retirement balance.

+1 to Dr Mike. I got 401K and some DRIP's dollar costing into the market right now and loving this. I have some extra cash and am trying to figure out how much, when and what kind of chunks and intervals to get this stuff into the market as well.

[letterk]

+1 to Dr Mike. I got 401K and some DRIP's dollar costing into the market right now and loving this. I have some extra cash and am trying to figure out how much, when and what kind of chunks and intervals to get this stuff into the market as well.

I'm just dollar costing with my 401k contributions. My cash I'm keeping in cash. 3.3% is fine by me right now.

[Jimbo]

It turned out ugly but not as bad as it was looking at 7 am this morning. You're right, nobody can effectively time the market on a regular basis and these people that think they can are probably more deluded than the people who thing they have a system that will beat the house in Vegas.
Dollar cost average. Money in the Market should be money you won't need for at least five years. Some people are saying the market will be even between now and next year. Most people agree the market will be way up five years from now. As always, no guaranties.

[OldSaw]

I'm thankful I still own a lot of Procter & Gamble stock. About 59% of P&G shares are owned by individual share holders, as opposed to institutional shares. Many of those individuals are employees of the company. I have confidence it will rise much higher long before I need to count on it.