Now's the time to put all of your money into pork belly futures. That's where the real money's at I tell ya.
I put money into the market in steady increments and for the long term, so days like this are just part of the process. The market was due for a correction. P/E ratios are still good, we've just run up too fast lately. I didn't expect a big down day like that, but maybe it'll be like pulling a bandaid off fast. Hurts, but goes away quickly. I'll probably look to put some more cash into the market here and there if values decline more in the coming days.
China's influence on the world market may really be felt in a week or two when (?) they decide to slow down their economy. FYI : the Asian markets are getting hammered out of the gates right now. Ours will probably get hit again at the opening bell. Yippeee!
ok well I will kind of help explain why china's drop matters so much. I forgot exactly what the time span is but over the past year or so 80-90% of new investments funds from america are going into emerging markets aka china. china is clearly a bubble market since people over there are mortgaging houses to be in the market. further, a good amount of growth for US companies is centered around BRIC (brazil, russia, india, china) growth...so if those guys slow then we slow. so basically, you have unoriginality in the mutual fund/hedge fund/general public investing combined with an actual slap in the face scare from china. the level of panic selling I saw today was flat out stupid. then also you have the sub prime meltdown threat....but the world is not over. stick to your stocks and wait to buy.
I hope everyone start to panic, dump their stock and hit market even harder. I have been waiting for this for long long time. My cash is ready.
Well, we're selling some of ours tomorrow... keeping our initial investment amount in... and riding it out with that, hoping for a surge up. Down about 1.8% yesterday alone. Considering we bought in at well under 20% of the current rate, we're good if we hang for a bit... but I'm snaggin' some G's out in the A.M. for sure. My mutuals even took a 3+% dive. But I never budge on that money. It's up overall for the past three years or so... and it was way worse last June.
So pretend....just PRETEND...that I'm a novice investor with a 401K and 90% of my money (40% in the S&P Index fund) is in variable mutual funds. Should I do anything like move some to fixed? Or should I just wait it out?
wait or rebalance (which will likely mean moving fixed to equity). remember the old adage is "buy low; sell high".
