KevinL Posted October 9, 2008 Share Posted October 9, 2008 Any real reason at all for the free-fall that you can think of? (Seriously, I can't think of a reason and I just got asked to go on television tonight to explain the drop.) OK I have a question ... maybe it's silly ... but what percentage of the market is held by active (contributing not withdrawing) 401k funds and other retirement funds that are contributed into on a regular basis. Is it significant? I mean every other Friday my company sends Fidelity tens of thousands of dollars that will be invested. This increase in demand must (at least momentarily) send a few prices up? Other companies are on the same (or similar) schedule. Could part of the current downturn be 401k investors having their reflex-action and transferring their 401k to fixed return investments? Quote Link to comment Share on other sites More sharing options...
tonorator Posted October 9, 2008 Share Posted October 9, 2008 OK I have a question ... maybe it's silly ... but what percentage of the market is held by active (contributing not withdrawing) 401k funds and other retirement funds that are contributed into on a regular basis. it's flowing in and you are getting shares of the mutual funds at the lower prices. there's not enough flowing in, however, to compete with the large mutual fund companies kicking in their computerized training strategies to optimize their returns. big moves one way or another generate opportunity and when the market starts to sway one way, selling programs kick in that push it even farther so that the buying programs can then kick in when the prices are low enough. time it right and you can win too, but timing it right ain't easy or we would all be rich. Quote Link to comment Share on other sites More sharing options...
muck Posted October 9, 2008 Share Posted October 9, 2008 Tens of billions of dollars of mutual funds were sold in September, and the trend is continuing into October. An unknown, but believed to be gigantic, sum is being redeemd from hedge funds (who are typically leveraged). ...both are placing a hugh toll on asset prices... Quote Link to comment Share on other sites More sharing options...
dmarc117 Posted October 9, 2008 Share Posted October 9, 2008 Tens of billions of dollars of mutual funds were sold in September, and the trend is continuing into October. An unknown, but believed to be gigantic, sum is being redeemd from hedge funds (who are typically leveraged). ...both are placing a hugh toll on asset prices... citadel is practically begging its clients no to redeem. Quote Link to comment Share on other sites More sharing options...
muck Posted October 9, 2008 Share Posted October 9, 2008 citadel is practically begging its clients no to redeem. Only one pending redemption from any of my five funds, and that is not required to be met until July 2009. Quote Link to comment Share on other sites More sharing options...
Ursa Majoris Posted October 9, 2008 Share Posted October 9, 2008 It has been very painful to see my 401(K) imploding, but I am not retiring for many years and it would hurt me in the long run to sell at the bottom of the market, so I will continue to plow money into my diversified portfolio and get more shares why it is low so when it does come back in the next year or two, I will enjoy the nice gains I will get from staying with my program. If your 401k lasts that long.....at the current rate of implosion, in another 20 days mine will be wiped out completely. Quote Link to comment Share on other sites More sharing options...
muck Posted October 10, 2008 Share Posted October 10, 2008 Market just dropped another 3% in the aftermarket. We covered some more of our short position and have orders in to cover the remaining portion of our short about 1.5% lower. I will be looking to re-establish the short position at higher levels, maybe as soon as tomorrow if we get a bounce. Quote Link to comment Share on other sites More sharing options...
Ursa Majoris Posted October 10, 2008 Share Posted October 10, 2008 Market just dropped another 3% in the aftermarket. We covered some more of our short position and have orders in to cover the remaining portion of our short about 1.5% lower. I will be looking to re-establish the short position at higher levels, maybe as soon as tomorrow if we get a bounce. What fun for you. Quote Link to comment Share on other sites More sharing options...
I Like Soup Posted October 10, 2008 Share Posted October 10, 2008 it's a bloodbath. i absolutely must win all my fantasy leagues now ... I mean really people, just keep feeding the sky is falling frenzy. The Dow is one of the leading indicators for the economy... Quote Link to comment Share on other sites More sharing options...
muck Posted October 10, 2008 Share Posted October 10, 2008 What fun for you. ...look, I'm trying to tell you that I am buying... Not that I have enough money to move the market, but I am buying. Quote Link to comment Share on other sites More sharing options...
muck Posted October 10, 2008 Share Posted October 10, 2008 I mean really people, just keep feeding the sky is falling frenzy. The Dow is one of the leading indicators for the economy... It is in "normal times" ... this is not a "normal time". Quote Link to comment Share on other sites More sharing options...
Clubfoothead Posted October 10, 2008 Share Posted October 10, 2008 Does anyone else get the feeling that investing heavily in 5.56mm, 7.62mm and 9mm ammunition is not such a bad idea? I'm picking up another shotgun on payday. A ton of ammo and a few live chickens too, just to be safe. Quote Link to comment Share on other sites More sharing options...
Sugar Magnolia Posted October 10, 2008 Share Posted October 10, 2008 ...look, I'm trying to tell you that I am buying... Not that I have enough money to move the market, but I am buying. We are retired and already move $3,000 a month through autowithdrawl into the market to dollar cost average. Hubby tonight says lets move some of our money market IRA $$ into the market I need to see some stabilization before that happens. Quote Link to comment Share on other sites More sharing options...
muck Posted October 10, 2008 Share Posted October 10, 2008 We are retired and already move $3,000 a month through autowithdrawl into the market to dollar cost average. Hubby tonight says lets move some of our money market IRA $$ into the market I need to see some stabilization before that happens. I agree w/ your hubby (assuming he was talking about 5-20% of the cash, not 80% of the cash), fwiw. Quote Link to comment Share on other sites More sharing options...
Clubfoothead Posted October 10, 2008 Share Posted October 10, 2008 Stupid guy question since I'm stupid and because my only money in "the market" is via my 401(k): If you are supposed to buy low and sell high, why is the selling part happening so much more than the buying part? Quote Link to comment Share on other sites More sharing options...
Ursa Majoris Posted October 10, 2008 Share Posted October 10, 2008 Stupid guy question since I'm stupid and because my only money in "the market" is via my 401(k): If you are supposed to buy low and sell high, why is the selling part happening so much more than the buying part? Because we're not at bottom. Some economist guy was saying last week that the bottom could be somewhere between 7,000 and 8,000 for the Dow. Quote Link to comment Share on other sites More sharing options...
JoJoTheWebToedBoy Posted October 10, 2008 Share Posted October 10, 2008 Me, I'm maxing my 401K. It's going to be a rough ride for the next 4-5 years but by the time I'm ready to retire, that cheap stock I'm buying now will be funding my retirement. If you can afford it, ride it out..... Quote Link to comment Share on other sites More sharing options...
Sugar Magnolia Posted October 10, 2008 Share Posted October 10, 2008 I agree w/ your hubby (assuming he was talking about 5-20% of the cash, not 80% of the cash), fwiw. He was talking about 10% Quote Link to comment Share on other sites More sharing options...
muck Posted October 10, 2008 Share Posted October 10, 2008 He was talking about 10% Scale into your position ... think of it as "dollar cost averaging on a bit of an accellerated pace" ... In otherwords if you (and he) think that we're sorta close to a bottom, then put maybe 5% of the money you want to put into the market any day that the market is with ____% of current prices ... so, if the market bounces 20% from here, you're not still putting money in ... but, if it bounces around a bit (say 10% from here), then keep dribbling in a bit... You'll probably never get the whole amount put to work at the absolute bottom, but, I don't think you want to triy to get that cute either. ...regardless, the most important thing is that the two of you are on the same page... Quote Link to comment Share on other sites More sharing options...
muck Posted October 10, 2008 Share Posted October 10, 2008 (edited) We covered some more of our short position and have orders in to cover the remaining portion of our short about 1.5% lower. Just finished our cover at our target price (which was approximately 0.1% above the night-time lows). We're now 100% cash. The market is about 0.85% higher than where we just bought, fwiw. I'm heading home now and signing off for the night. Edited October 10, 2008 by muck Quote Link to comment Share on other sites More sharing options...
keggerz Posted October 10, 2008 Share Posted October 10, 2008 (edited) Stupid guy question since I'm stupid and because my only money in "the market" is via my 401(k): If you are supposed to buy low and sell high, why is the selling part happening so much more than the buying part? if someone wants to buy a stock someone has to be selling it and to sell a stock someone has to buy it... Edited October 10, 2008 by keggerz Quote Link to comment Share on other sites More sharing options...
Jimmy Neutron Posted October 10, 2008 Share Posted October 10, 2008 Does anyone else get the feeling that investing heavily in 5.56mm, 7.62mm and 9mm .45 ACP ammunition is not such a bad idea? Stocked pretty well, but adding to the pile. At the current price of ammo, it feels like an investment. We're also stocking up on food and disposable necessities. Quote Link to comment Share on other sites More sharing options...
Perchoutofwater Posted October 10, 2008 Share Posted October 10, 2008 Stocked pretty well, but adding to the pile. At the current price of ammo, it feels like an investment. We're also stocking up on food and disposable necessities. I have about 5 cases of 12 ga 7 1/2 shot shells. I have very close to 50 of these bad boys for the 12 ga. About 3 cases of 20 ga 7 1/2 shot. 5 or 6 boxes of .30-06 cartridges in varying weights and desings. I have almost a full box of 30-30 cartridges. I stilll have about 3 boxes of 9mm Quote Link to comment Share on other sites More sharing options...
Azazello1313 Posted October 10, 2008 Share Posted October 10, 2008 never mind, I just got out of doing it you've got a face for radio (and live-blogging) Quote Link to comment Share on other sites More sharing options...
Jimmy Neutron Posted October 10, 2008 Share Posted October 10, 2008 I have about 5 cases of 12 ga 7 1/2 shot shells. I have very close to 50 of these bad boys for the 12 ga. About 3 cases of 20 ga 7 1/2 shot. 5 or 6 boxes of .30-06 cartridges in varying weights and desings. I have almost a full box of 30-30 cartridges. I stilll have about 3 boxes of 9mm I'd stock up on heavier loads for the shotties - 7 1/2s are good for quail, but you'd be wise to have some heavy hunting loads (high brass 4s at least) on hand in addition to your buck loads. Think cases for the rifles vs. boxes. I believe you said you've for a decent stock of food on hand - good on ya. Don't forget stuff like toiletries. I don't know that things are going to get that bad, but it doesn't hurt to be prepared. At the very least, you'll have used the value of today's dollar on goods you know you'll use vs. buying them at inflated prices with devalued currency sometime in the future. Quote Link to comment Share on other sites More sharing options...
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