Stock Market

[Bobber]

I'm still putting money in every month. My account balances don't look very good right now, but I really don't have a lot of good alternative investments. I have a fair chunk of real estate in my portfolio, so don't want to own much more of that right now.

Historically stocks have been a good bet. I've got 25 to 30 years before I'll need to start tapping into this if I do, so can definetly think long term.

Just wondering what everybody else is doing?

 

[PlymouthCy]

I think the next couple of years could be a buyers market, assuming we get a reasonable energy plan.

 

[crash_zone]

same boat - pretty young. I'm planning on dumping all that I can into the stock market with the hopes that we'll never see it this low in our lifetime.

 

[twojman]

If you want to look at financials, look at the big boys; JP Morgan, Wells Fargo & Bank of America. Citi is a big boy but I think it will be many years before they are back on top like they were. Bank of America will basically get Countrywide for free within 3 or 5 years because of tax write-offs, Wells is doing a good job getting good business right now and JP Morgan got a steal in Bear Stearns.

Look for Wells and JP Morgan for some possible acquisitions in the future.

PS: Bank of America has a nice juicy dividend of $.64 a share per quarter or $2.56/year.

 

[Bobber]

If you want to look at financials, look at the big boys; JP Morgan, Wells Fargo & Bank of America. Citi is a big boy but I think it will be many years before they are back on top like they were. Bank of America will basically get Countrywide for free within 3 or 5 years because of tax write-offs, Wells is doing a good job getting good business right now and JP Morgan got a steal in Bear Stearns.

Look for Wells and JP Morgan for some possible acquisitions in the future.

PS: Bank of America has a nice juicy dividend of $.64 a share per quarter or $2.56/year.

I'm more a mutual fund guy, but good point. My brother in law works for JP Morgan and has been talking about what a great deal that was for that company. Evidently Bear Stearns building in New York was almost "free" in the deal.

 

[Cyclonepride]

My 401K isn't looking so hot.......my wife has a pretty good investment advisor, so while stuff isn't going up a whole lot, it's not going down a whole lot either.

 

[jtd9046]

Putting everything I can afford into my employee stock purchase program. 15% discount and can't touch it for one year, but after that year it should be a pretty good investment.

 

[Bobber]

Careful... Remember Enron.

I own quite a bit of company stock and it's been a good deal, but you need to diverisfy a bit to lower risk.

 

[cybsball20]

Putting everything I can afford into my employee stock purchase program. 15% discount and can't touch it for one year, but after that year it should be a pretty good investment.

I don't put it all in there, but quite a bit... It has treated me pretty well over the years and is still holding pretty steady. I move a bunch to something safer the first of each year though...

 

[Phaedrus]

I continue to push 15% of my income into mutual funds. I'm putting a bunch toward paying off my house early as well, as that's 5% guaranteed, and I gain a degree of freedom by not worrying about a house payment.

 

[cyclone1975]

It gets frustrating to auto invest every month but still see my balances go down. So now I just try to focus on how many more shares I have each month.

By the way, do you think Congress will come through with a big stock crisis plan to bail out all of the prudent investors if the stock market doesn't rebound in the next couple years?

Why not, they are trying to do it for all those people who bought homes they couldn't afford.

 

[clonehome]

The biggest risk with owning U.S. assets now and in the future is our nation's debt. Federal, state, city, and personal debt. The housing bill passing through Congress right now requires raising the federal debt ceiling from $9.6 trillion to $10.2 trillion. W/ 300 million Americans and about 130-140 million workers thats about 33,000 per person and about $75,000 per worker. This does not include the imminent shortfalls in Social Security and Medicare 20-30 years out. Frankly, our brilliant congressional and presidential leadership over the last 20 years has led us to the edge of the cliff. The only way out of this is massive inflation. Expect the dollar to suffer indefinitely.

I hate to be a buzz kill. My advice is to pay down your mortage and avoid paying interest wherever you can -- on car loans, student loans, credit cards. Investment opportunities will arise but you need to be liquid. Deleverage.

 

[Bobber]

The biggest risk with owning U.S. assets now and in the future is our nation's debt. Federal, state, city, and personal debt. The housing bill passing through Congress right now requires raising the federal debt ceiling from $9.6 trillion to $10.2 trillion. W/ 300 million Americans and about 130-140 million workers thats about 33,000 per person and about $75,000 per worker. This does not include the imminent shortfalls in Social Security and Medicare 20-30 years out. Frankly, our brilliant congressional and presidential leadership over the last 20 years has led us to the edge of the cliff. The only way out of this is massive inflation. Expect the dollar to suffer indefinitely.

I hate to be a buzz kill. My advice is to pay down your mortage and avoid paying interest wherever you can -- on car loans, student loans, credit cards. Investment opportunities will arise but you need to be liquid. Deleverage.

I agree with your advice and I don't like debt either.

Our national level is high, but it's been much worse. After WW2 our debt level was much higher as a percentage of our economy. I'm not trying to foo foo what your saying(I still hate that Cheeney said that debt doesn't matter), but you have to look at it from a historic perspective.

 

[Bobber]

The only way out of this is massive inflation. Expect the dollar to suffer indefinitely.

If this comes to pass, carrying some debt is acually a good thing to beat the devaluation of the dollar. Remember the late 70's? I do barely.

 

[acody]

No stock broker and/or expert knows what is going to happen in the stock market. Stay with broad diversification, i.e. index mutual funds like the S P 500 or the Total Stock Market. Go with the no load guys like Vanguard, Fidelity or Schwab. Do not chase market ralleys or hot stocks. The market has been beat up since November 07. We are due for a rally.

 

[rahtotheames]

I'm no expert, but I'm putting my money in the pizza industry.

 

[capitalcityguy]

I would always question someone who was putting money towards paying off their mortgage early. Rates are too low IMO (and as most financial types suggest) to be throwing your money at paying down your mortgage early.

I wish I could find the article online I just recently read, but the author even suggested that taking a 15 vs 30 year loan is foolish given today's low interest rates.

Switching gears -- similar to another poster, I continue to take advantage of my company's ESPP by buying our at a 15% discount. This is a great benefit to anyone who's employer offers such a plan.

As far as my brokerage account, I've been 100% cash for several months now. I got out of stocks just in time (with the help of an investment website I subscribe to). I'm anxiously awaiting some signs of turnaround so I can begin some bargin shopping!

MY 401k? I don't even look at it when the market is like this. Doesn't do me any good and I don't need it until retirement so I'll let 'er ride and just keep contributing.

 

[jmb]

I'm still putting money in every month. My account balances don't look very good right now, but I really don't have a lot of good alternative investments. I have a fair chunk of real estate in my portfolio, so don't want to own much more of that right now.

Historically stocks have been a good bet. I've got 25 to 30 years before I'll need to start tapping into this if I do, so can definetly think long term.

Just wondering what everybody else is doing?

Besides the Bible Sir John Templeton says that this was the single most influential book in his life. Explains an awful lot, read it and you will think it was written in 2001, then realize maybe it may be a bit more salty:
Extraordinary Popular Delusions & the Madness of Crowds
Charles Mackay
Foreword by John Marks Templeton

 

[Phaedrus]

I would always question someone who was putting money towards paying off their mortgage early. Rates are too low IMO (and as most financial types suggest) to be throwing your money at paying down your mortgage early.

I wish I could find the article online I just recently read, but the author even suggested that taking a 15 vs 30 year loan is foolish given today's low interest rates.

That seems reasonable... until you lose your job and it takes 6 months or a year to get another one. In the meantime, you get to work on that peptic ulcer and that house repossession. Frankly, I could give a rat's patootie what the rate was; the emotional/security factor of owning the home outright is worth it to me.

Of course, you don't pay down your house until you have an emergency fund.

Switching gears -- similar to another poster, I continue to take advantage of my company's ESPP by buying our at a 15% discount. This is a great benefit to anyone who's employer offers such a plan.

As far as my brokerage account, I've been 100% cash for several months now. I got out of stocks just in time (with the help of an investment website I subscribe to). I'm anxiously awaiting some signs of turnaround so I can begin some bargin shopping!

MY 401k? I don't even look at it when the market is like this. Doesn't do me any good and I don't need it until retirement so I'll let 'er ride and just keep contributing.

Sounds like someone is a Bob Brinker fan. Her certainly has to have been good for you over the last 10 years or so, hasn't he?:yes::smile::wink:

 

[Phaedrus]

I'm no expert, but I'm putting my money in the pizza industry.

So, if we invade Iraq for big oil, did we invade Germany for big beer, and Italy for big pizza???

Just kidding...:wink: