dmarc117 Posted May 7, 2010 Share Posted May 7, 2010 I hope it keeps dropping. I'm young and the lower it is the better deal I'm getting on my continuing investments. only problem is that money youre gonna make will be worthless. Quote Link to comment Share on other sites More sharing options...
Avernus Posted May 7, 2010 Share Posted May 7, 2010 only problem is that money youre gonna make will be worthless. well...there's always that.. Quote Link to comment Share on other sites More sharing options...
Perchoutofwater Posted May 7, 2010 Share Posted May 7, 2010 On one of my larger accounts (roughly 1/3 of my investments), I'm switching from my broker managing it to institutional management. In order to do this, they sell everything, then open a new account. I just got the notification that everything was sold on 5/5/10. Talked to the broker and they were going to reinvest yesterday, but held off when the market started tanking. Something to be said for hard work and clean living. Quote Link to comment Share on other sites More sharing options...
Brentastic Posted May 7, 2010 Share Posted May 7, 2010 only problem is that money youre gonna make will be worthless. Not initially. We are going through deflation which will increase the value of your cash dollars at the expense of defaulted IOU dollars. However, after this deflation occurs over the next 5 years or so - who knows what will happen. Possibly hyper-inflation but I haven't thought about that far out in time. In the near term though, your dollars will increase in value/purchasing power. Quote Link to comment Share on other sites More sharing options...
Avernus Posted May 7, 2010 Share Posted May 7, 2010 Not initially. We are going through deflation which will increase the value of your cash dollars at the expense of defaulted IOU dollars. However, after this deflation occurs over the next 5 years or so - who knows what will happen. Possibly hyper-inflation but I haven't thought about that far out in time. In the near term though, your dollars will increase in value/purchasing power. I still think there are too many dollars in circulation right now for a deflationary period... I don't know if you're going off history or what, but I don't understand how there would be deflation when that would be a good thing...and possibly a sign of the real recovery coming faster than we all thought... the only forecast I can see is inflation and possibly hyper-inflation if we keep digging further... Quote Link to comment Share on other sites More sharing options...
Brentastic Posted May 7, 2010 Share Posted May 7, 2010 I still think there are too many dollars in circulation right now for a deflationary period... I don't know if you're going off history or what, but I don't understand how there would be deflation when that would be a good thing...and possibly a sign of the real recovery coming faster than we all thought... the only forecast I can see is inflation and possibly hyper-inflation if we keep digging further... How can you justify inflation though? The problem globally is credit defaults which spells deflation. I can't see any possible way inflation becomes a problem in the near long-term (4-6 years). Like I've said, there will be massive defaults on IOUs which we are seeing with Greece, Spain, Portugal, Ireland, US local governments, banks etc... All of this will force a massive credit contraction which will deflate the dollar. It's only good for dollar holders of real cash (not IOUs). So real dollars will have higher purchasing power and those that have their money tied to credit, IOUs, receivables etc... will be the losers. Which is exactly why all along I have been advocating (more like begging) huddlers to get cash-heavy, re-allocate 401K and investment funds into cash or cash equivalents (t-bills). Then when the market bottoms in 5 years, the holders of real cash can take advantage of all equities at clearance sale prices. Quote Link to comment Share on other sites More sharing options...
Brentastic Posted May 7, 2010 Share Posted May 7, 2010 Avernus - I should add that your thought of too many dollars in circulation is correct, but 80% of those 'dollars' are in the form of credit (even your electronic dollars in your bank qualify as credit). That's why the best strategy is to have cash on your person - if you must use banks, and all of us must, you should be researching your bank ensuring they are very safe. I don't even have faith that the FDIC can fulfill their promises - they are in the red and have been for some time. The only safe investment right now is cash in hand but since that's not feasible for most, get as close to that as you can. Quote Link to comment Share on other sites More sharing options...
vt700guy Posted May 7, 2010 Share Posted May 7, 2010 Hoping for the stocks to keep tumbling. Brilliant! I'm young, I will not be selling these stocks for many years. I'm happy to see them falling now because I'm basically picking them up "on sale" every month through a DCA plan. Why would I want to be buying them at higher prices? Quote Link to comment Share on other sites More sharing options...
MikesVikes Posted May 7, 2010 Share Posted May 7, 2010 I'm young, I will not be selling these stocks for many years. I'm happy to see them falling now because I'm basically picking them up "on sale" every month through a DCA plan. Why would I want to be buying them at higher prices? I know what you meant and you weren't wrong about your theory. I'm sure you meant that the stocks would build back up in the future otherwise it wouldn't matter if you were 20, 60, or 100. Quote Link to comment Share on other sites More sharing options...
vt700guy Posted May 7, 2010 Share Posted May 7, 2010 I know what you meant and you weren't wrong about your theory. I'm sure you meant that the stocks would build back up in the future otherwise it wouldn't matter if you were 20, 60, or 100. Yes, certainly. In a perfect world I would buy them for mere pennies and they would grow to unheard of levels just prior to my retirement. Of course when/how much they will improve in the future is always up for debate. Quote Link to comment Share on other sites More sharing options...
Avernus Posted May 7, 2010 Share Posted May 7, 2010 Avernus - I should add that your thought of too many dollars in circulation is correct, but 80% of those 'dollars' are in the form of credit (even your electronic dollars in your bank qualify as credit). That's why the best strategy is to have cash on your person - if you must use banks, and all of us must, you should be researching your bank ensuring they are very safe. I don't even have faith that the FDIC can fulfill their promises - they are in the red and have been for some time. The only safe investment right now is cash in hand but since that's not feasible for most, get as close to that as you can. you're right about people having way more money than there is in circulation...but I still think there are too many still in circulation for inflation not to play a factor and one reason being the fact that our government wants to inflate their way out of debt....if you print enough money, then 20 some-odd trillion isn't such a bad debt to carry it appears that they feel inflation is the answer and not the problem - but they won't say that, obviously...and I'm just going off their actions... but I will say that if the money supply in circulation is tightened, then deflation will be a strong reality and I would rather have deflation than inflation considering our standpoint...that's if I had to choose one.. Quote Link to comment Share on other sites More sharing options...
frankf Posted May 7, 2010 Share Posted May 7, 2010 I think it is time to start adding to some positions,with such a big downturn this week there are some bargains out there. Don't buy all at once but I would start building positions early next week. Quote Link to comment Share on other sites More sharing options...
dmarc117 Posted May 8, 2010 Share Posted May 8, 2010 I think it is time to start adding to some positions,with such a big downturn this week there are some bargains out there. Don't buy all at once but I would start building positions early next week. i wouldnt. im 80% cash and staying that way til i see something positive. europe is on life support. china is a bubble that will soon pop. and our economy is way too fragile at this time. granted, my situation is a little different cause i tend to make most of my income when there is volatility in the world. be careful the next few months. Quote Link to comment Share on other sites More sharing options...
Brentastic Posted May 8, 2010 Share Posted May 8, 2010 3 User(s) are reading this topic (0 Guests and 0 Anonymous Users) 3 Members: wiegie, Brentastic, dmarc117 For some reason this made me laugh. Quote Link to comment Share on other sites More sharing options...
bushwacked Posted May 10, 2010 Share Posted May 10, 2010 DOW is down 200+ points within the first hour of trading today. Anyone still think yesterday was a 'glitch'? So if 200+ points down on Friday means something what does 400+ points up on Monday morning mean? Quote Link to comment Share on other sites More sharing options...
Perchoutofwater Posted May 10, 2010 Share Posted May 10, 2010 So if 200+ points down on Friday means something what does 400+ points up on Monday morning mean? That a lot of your tax dollars are going to fund the bailout of Greece via the IMF? Quote Link to comment Share on other sites More sharing options...
bushwacked Posted May 10, 2010 Share Posted May 10, 2010 That a lot of your tax dollars are going to fund the bailout of Greece via the IMF? I didn't ask why it happened I asked what it means. Quote Link to comment Share on other sites More sharing options...
Brentastic Posted May 10, 2010 Share Posted May 10, 2010 So if 200+ points down on Friday means something what does 400+ points up on Monday morning mean? Suckers adding to their long positions and short sellers from last week taking profit. Quote Link to comment Share on other sites More sharing options...
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