Stock market concerns, please advise

[aussiedream]

I have a little investment in mutual funds and I was hoping to get some money out of it in a few weeks' time. The problem is, the value of my investment has already gone down because of the stock market panic caused by the US housing crisis or something. In the last couple of weeks, I tried to remain calm hoping that things will turn around and continue to keep my money in mutual funds. But now I'm beginning to get worried because the value of my mutual funds continues to go down. I was counting on that money for a special project in a few weeks' time. I don't know what I should do? Is there anyone here who's knowledgeable in stock markets? Please advise.

 

[DiaryOfAMadman]

Well I'm good with market advice, however you really didn't ask a question. You've suffered the same losses that everyone has recently but stock prices in most areas will come back up to do "bargin hunters" who are now starting to buy up stocks that have hit of dropped below 52-week lows. If you have any specific question feel free to post it.

 

[Pathicus]

Sorry dude, can't really help. Last year I had most of the cash shifted from emerging market shares into lower risk portfolios (as suggested by the asset manager). Stocks continued to climb for ages after that... Could have made a fair bit of money had I not pulled out too early.

To add to my tribulations the knock-on effects of the sub-prime mortgage problem have knocked 20% off my current portfolio. I am hoping that once summer is over (the big traders come back / trading volumes normalise) and the scope of the US problem is known, things will pick up again. Still, I am tempted to just move into property at the mo - I'm tired of worrying about these things.

 

[maxpowr9]

All I'm gonna say is that both my parents and myself dumped all our stocks on Monday and happily so. The trade tax sucks but what are you gonna do about it.

Here is my input on the current stock market...
If you are a bear, the you will love this market. You can make lots of money if you are fast enough. If you are a bull (like me and my rents), get the f' out. The bull will become the pig and be offered up for the slaughter.

With all honesty, I would take the money out quickly, especially if you are gonna use the money in a few weeks anyways. As much as the media says the stock market is ok, theyre lying (as usual). The only reason the stock market goes up (and then back down) during the day is that the bears are trying to make a quick buck. All the bulls are screaming "sell".

One saying my econ professor said that I will never, ever forget.

"Bulls make money. Bears make money. Pigs get slaughtered."

Since most people haven't heard of the term "pig" ill explain it. A pig is basically a person that is along for the ride. They hold on to their stock no matter what the market does and therefore do not make any money.

 

[Pathicus]

Mmmmm... Waffles

 

[NickCole]

If you can delay beginning the special project, then do; and leave your mutual funds alone for now.

If you can't delay then either take out a loan and leave your mutual funds, gambling that your investment will recover, or cash out your mutual fund and take the loss.

Unless you have other cash resources, those are pretty much your only options.

 

[NickCole]

I see Mitt Romney has taken a big hit from the market downturn.

Oh my that makes me so darned sad.


And I remember a month or so ago the Clintons liquidated their stock portfolio because they knew some Rovian jackass would likely try to turn some nothing into a scandal. Funny how that worked to their advantage!

 

[smelter]

Diversifed mutual funds will recover when this sub-prime debacle works its way through the financial market. Selling now should be postponed if possible, but if not then do what you have to do.

IF - a poem by Rudyard Kipling

If you can keep your head when all about you
Are losing theirs and blaming it on you;

If you can trust yourself when all men doubt you,
But make allowance for their doubting too;

If you can wait and not be tired by waiting,
Or, being lied about, don't deal in lies,
Or, being hated, don't give way to hating,
And yet don't look too good, nor talk too wise;

If you can dream - and not make dreams your master;

If you can think - and not make thoughts your aim;

If you can meet with triumph and disaster
And treat those two imposters just the same;

If you can bear to hear the truth you've spoken
Twisted by knaves to make a trap for fools,
Or watch the things you gave your life to broken,
And stoop and build 'em up with wornout tools;

If you can make one heap of all your winnings
And risk it on one turn of pitch-and-toss,
And lose, and start again at your beginnings
And never breath a word about your loss;

If you can force your heart and nerve and sinew
To serve your turn long after they are gone,
And so hold on when there is nothing in you
Except the Will which says to them: "Hold on";

If you can talk with crowds and keep your virtue,
Or walk with kings - nor lose the common touch;

If neither foes nor loving friends can hurt you;

If all men count with you, but none too much;

If you can fill the unforgiving minute
With sixty seconds' worth of distance run -
Yours is the Earth and everything that's in it,
And - which is more - you'll be a Man my son!

 

[White Eagle]

If frogs had wings they wouldn't bump their little bottoms when they hopped.

 

[TriBi]

Short term - you lose out.

Longer term - it will rebound and you will recover what you have lost and more.

The share market is not a short term proposition - you never know when a "correction" is going to happen.

I'm certainly not a "speculator" - but I did buy a reasonable batch of (pretty much) blue chip shares about 11-12 years ago. A short while ago they were worth almost 4 times what I paid for them. Right now, they are worth a bit more than 3 times what I paid for them. Big deal - they'll come back up again - Oh - and the dividends I have received over the last decade have very nearly covered the original outlay...

 

[cityboy-stl]

Well there was a sudden rebound yesterday and the Fed cut the discount rate this morning. Bailing out may be premature and you could actually lose out by doing so.

http://money.cnn.com/2007/08/17/news/economy/fed_rates/index.htm?cnn=yes

 

[maxpowr9]

Well there was a sudden rebound yesterday and the Fed cut the discount rate this morning. Bailing out may be premature and you could actually lose out by doing so.

http://money.cnn.com/2007/08/17/news/economy/fed_rates/index.htm?cnn=yes

Ugh. it's crap like this that makes me cringe. (CNN talking about money and markets. God, where is Chance to bash CNN when you need him.) The quote of the day has got to be "What the Fed did was about consistent with putting a Band-Aid on a gunshot wound" from Chris Johnson of Johnson Research Group. As more subprime mortgages and loans get defaulted, the market will take a bigger beating.

One thing an investor will never have is regret about a decision they made.

 

[letme]

Week after week the market has been going up & up.Past 2 months records broke on a daily bases.Never made but a blimp on the news. Broke 14,000 made a one sentence line in the news. A bad week and it is the lead story everyplace.

The Dow is UP 77% from 2002 !!!!

The housing market bloomed,lenders got greedy and ,made lots of loans worth billions and sold the loans to banks./brokers. People defaulted and companys lost.

The Dow , S&P , Nasdac are stronger then ever. One section of the market screwed up and people get scared. The Fed did the right thing {as well as Japan, the E.U. China } by pumping billions into the market.

Remember the S&L crash several years ago ? The Fed did not act then. One of the missions of the Fed is to insure that never happens again. Did anybody notice that the stock value of NATION-WIDE(the largest mortgage company burned w/ this), That their stock prise ROSE today ? 1000's of loans were made today. BUT not like they were the past few years.

 

[smelter]

I've been stuffing my money in a mattress.

Ah ... can you PM me with your address and the times that you're not at home, I'd surely appreciate it.

... and I wasn't calling you shirley.

 

[chance1]

I haven't done a thing with my portfolio (not that large)

I'm in it for the long term

I think the key is to keep liquid funds that are not at the mercy of s/t stock market fluctuations

figuring out how much that is - is the key - not so much that ur missing out on possible returns - not so little that if u need money, u have to liquidate

sounds trite but a balanced portfolio is the way to go - mutual funds, stocks, govt bonds - I even have a cd (remember them?)

and my company has a pension plan (not bad) - just got vested (5 years)


I know all of the above is general

as to the specific question about pulling ur money out - u gotta do what u gotta do - don't worry about the "loss" of future hopeful returns - if u need the money, u need it - and don't look back afterwards

man am i droning on and on .....................

keep some funds liquid
invest longterm
if u make a killing on something - get out - cash out - and reinvest
stay awake

cya

 

[khushibagh]

I think its abundantly clear that no one posting has a clue how the market is going to act over the next few weeks, so as NickCole put it, the OP's choices are to cut his losses and pull out now, see where things are when he needs the money or take a loan if he is sure that the funds are so depressed that they will rise faster than the interest on the loan. If I were to hazard a guess, I would guess that the market won't go too much lower because the regulators are going to intervene to prop up markets. Also, while the much maligned securitization of mortgage loans is causing US subprime risk to show up in unexpected places (such German banks and French funds), the flip side of that is the risk is well and truly spread out so it is less likely to sink a major global institution.

 

[DiaryOfAMadman]

For those of you who invest in stocks, I'm suprised at how many of you guys are "buy and hold" guys. Just because you hold a stock for 20 years doesn't mean your going to make any money. If you picked up shares of IBM in 1999, you would have actually lost money over the years already.

The key to stock market investing (if your actually looking to make money from it) is to "buy low and sell high". It's much more simple then it seems and it's how most of the real money is made in the markets. For example I have a list of about 20 stocks that I've been watching over months and in some cases years, I feel I know their overall patterns very well. For example lets look at two of my favorite stocks Southern Copper (PCU) and Countrywide Financial (CFC). A month or so ago I made a nice profit on a few stocks and liquidated about half of my stock portfolio. Last Thursday both of these companies were beaten down terribly so I know their usual patter and saw that it was a good time to pick up both and at a great discount.

Last Thursday I purchased Countrywide at the price of around $18 and change per share and sold it this past Thursday @23.18 wich was roughly a $5 per share profit.

Last Thursday I purchased Southern Copper at around $85 per share and I've held onto it and it closed Friday in after hours trading at $102.75 per share. Plus it paid a dividend earlier this month that I was qualified for of around $3 per share I believe.

Southern Copper is a company I like to play with a lot, maybe 7x or so per year I'll buy it when It drops below $92 per share and sell it when it crosses $105 if I feel it has toped out for the cycle. Its just an ongoing cycle I've noticed with this company over the past 3 years.

My point being while this market may be bad for most investors, who like to sit back on long term investments. At the same time it's great for those active traders like me who like making some moves no and then for some quick cash. But to each his own, I hope everyone here retires early as millionaires.

All the Best Guys!

 

[lancelva]

My point being while this market may be bad for most investors, who like to sit back on long term investments. At the same time it's great for those active traders like me who like making some moves no and then for some quick cash. But to each his own, I hope everyone here retires early as millionaires.

I prefer just sit back and let my investment broker handle everything . It saves time and, in the end, money.