Market downturn - what are you doing?

Megan · 01-21-2008, 01:46 PM

As we all know, the investment market isn't exactly booming these days. What are you doing about it? Today I checked my current investments against their worth at the beginning of the year, and I've lost a solid chunk of change. It's disheartening, but at this point, I'm not planning to do anything. As I've posted before here, I really only have invested in mutual funds at this point, and I've questioned selling them off, but I think at this point, I'm just going to ride it out.

What are everyone else's plans?

72Tiger · 01-21-2008, 02:01 PM

For one thing, I am going to continue to invest. The way I look at it, I am buying cheap right now. If I were to panic and sell now, I would have been buying high and selling low. That is a sure fire strategy for losing money every time. That is the only sane way for me to look at market downturns, as discouraging as they are.

All my investments are in retirement accounts right now, but I will soon be branching out to non-retirement investments, and would do the same thing with them.

Gootsy · 01-21-2008, 02:04 PM

I have most of my money sitting in a high interest savings account. Just trying to save as much as possible while watching the market go crazy.

My RRSPs have gone down a disgusting amount though, which's unfortunate. But I never really thought about touching that for another 40 + years so... yeah long term hehe.

Otherwise I'm just sitting back and enjoying the show (might sound mean, but it's true

).

rstlne · 01-21-2008, 02:10 PM

Everything that I was supposed to do in this market downturn, I actually started doing in the year 2004. That's when I caught the first whiff of the housing and mortgage crisis. That was the year when I started selling my investments in the financial and real estate sectors. I began buying gold that year, starting at a price of around $400/oz. (Also silver, but not as many ounces.) I also started a short position in my portfolio, which was foolish at that time but very lucrative now.

Investing is a tough game. You're either a forward-thinking contrarian or a victim.

stardanced · 01-22-2008, 03:58 AM

I don't have a lot of investments (just my small Roth IRA), but I am continuing to buy in small increments. I'm buying for the long term (a target retirement fund), so I'm not so worried about how it's doing this year--it's not likely to affect the price the fund will be when I retire in 40 years! In fact, I'm more encouraged to buy now that prices are a little lower. I feel like my fund is on sale.

rolltimer · 01-22-2008, 07:14 AM

After all the hype about the markets entering bear territory, I checked my stocks just after the open this morning [1-22-08], and found the DOW down about 350 points, all but one of my stocks lower and myself the happy owner of 100 shares of International Paper [IP] which I put in an order to buy when it touched 30. I snagged it at 29.46. Now, an hour later I see recovery has set in and the DOW is down less than 100 points while IP has risen to over 31. Crazy! Now if I could just snag some General Electric [GE].

Don't get me wrong. Overall, my net worth has taken a hit of about 10 to 15% from the highs of last summer. It could and probably will go lower. But I am not my net worth. I intend to plow through these companies that are being trounced and tossed out like garbage. Do a little market dumpster diving and find the salvageable.

To my fellow investors who find themselves awash in these troubled waters, I say, "Swim!" [and as the waves climb higher], "Grab your boards and surf!"

Anthony Marrone · 01-22-2008, 08:04 AM

I have a bunch of elderly clients who are calling our office in increasingly-large waves panicking and asking if we think it's prudent from a tax-perspective to sell everything off. We, of course, try to defer to the accountants and financial advisors, but I do share the concern of many folks who have most of their retirement fund attached to equities.

Personally, I've been pouring through the market to try to identify several places where I feel there is potential for short-term losses, but long-term recovery and growth.

That, plus I'm starting to store my cash in coffee cans in our basement...

Jeremy · 01-22-2008, 08:14 AM

I'm just hanging in there, since this is just a blip on the radar in the grand scheme. Of course, telling that to about 3,000 clients is a different story

rolltimer · 01-22-2008, 08:32 AM

Quote:

Originally Posted by Anthony Marrone

plus I'm starting to store my cash in coffee cans in our basement...

You may want to start digging underneath your basement for a resource that's becoming increasingly more valuable--water. I'm in a severe drought-stricken area in a rural part of Alabama. Lots of people here are considering digging their own wells.

farley2k · 01-22-2008, 08:48 AM

Quote:

Originally Posted by 72Tiger

For one thing, I am going to continue to invest. The way I look at it, I am buying cheap right now. If I were to panic and sell now, I would have been buying high and selling low. That is a sure fire strategy for losing money every time. That is the only sane way for me to look at market downturns, as discouraging as they are.

That is my plan. I am 30+ years from retirement so I am betting that by then this will be over. Actually I will be getting more stock for my dollar as prices get lower so I will be in a better place financially in a few years.

01-21-2008, 01:46 PM	#1
Megan Senior Member Join Date: Dec 2007 Posts: 304 Reputation: (59)	Market downturn - what are you doing? As we all know, the investment market isn't exactly booming these days. What are you doing about it? Today I checked my current investments against their worth at the beginning of the year, and I've lost a solid chunk of change. It's disheartening, but at this point, I'm not planning to do anything. As I've posted before here, I really only have invested in mutual funds at this point, and I've questioned selling them off, but I think at this point, I'm just going to ride it out. What are everyone else's plans? __________________ Counting My Pennies

01-22-2008, 07:14 AM	#6
rolltimer Senior Member Join Date: Dec 2007 Location: Alabama Posts: 128 Reputation: (24)	I Am Not My Net Worth After all the hype about the markets entering bear territory, I checked my stocks just after the open this morning [1-22-08], and found the DOW down about 350 points, all but one of my stocks lower and myself the happy owner of 100 shares of International Paper [IP] which I put in an order to buy when it touched 30. I snagged it at 29.46. Now, an hour later I see recovery has set in and the DOW is down less than 100 points while IP has risen to over 31. Crazy! Now if I could just snag some General Electric [GE]. Don't get me wrong. Overall, my net worth has taken a hit of about 10 to 15% from the highs of last summer. It could and probably will go lower. But I am not my net worth. I intend to plow through these companies that are being trounced and tossed out like garbage. Do a little market dumpster diving and find the salvageable. To my fellow investors who find themselves awash in these troubled waters, I say, "Swim!" [and as the waves climb higher], "Grab your boards and surf!"

01-22-2008, 08:04 AM	#7
Anthony Marrone Member Join Date: Jan 2008 Location: Syracuse, New York Posts: 56 Reputation: (18)	I have a bunch of elderly clients who are calling our office in increasingly-large waves panicking and asking if we think it's prudent from a tax-perspective to sell everything off. We, of course, try to defer to the accountants and financial advisors, but I do share the concern of many folks who have most of their retirement fund attached to equities. Personally, I've been pouring through the market to try to identify several places where I feel there is potential for short-term losses, but long-term recovery and growth. That, plus I'm starting to store my cash in coffee cans in our basement... __________________ The Frugal Law Student Wise Bread Blog

01-22-2008, 08:14 AM	#8
Jeremy Member Join Date: Jan 2008 Posts: 34 Reputation: (12)	I'm just hanging in there, since this is just a blip on the radar in the grand scheme. Of course, telling that to about 3,000 clients is a different story __________________ Generation X Finance - Helping a unique generation achieve financial independence. Financial Planning at About.com

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01-21-2008, 02:01 PM	#2
72Tiger Senior Member Join Date: Jan 2008 Location: Knoxville, TN Posts: 279 Reputation: (33)	For one thing, I am going to continue to invest. The way I look at it, I am buying cheap right now. If I were to panic and sell now, I would have been buying high and selling low. That is a sure fire strategy for losing money every time. That is the only sane way for me to look at market downturns, as discouraging as they are. All my investments are in retirement accounts right now, but I will soon be branching out to non-retirement investments, and would do the same thing with them.

01-21-2008, 02:04 PM	#3
Gootsy Senior Member Join Date: Jan 2008 Posts: 236 Reputation: (19)	I have most of my money sitting in a high interest savings account. Just trying to save as much as possible while watching the market go crazy. My RRSPs have gone down a disgusting amount though, which's unfortunate. But I never really thought about touching that for another 40 + years so... yeah long term hehe. Otherwise I'm just sitting back and enjoying the show (might sound mean, but it's true ).

01-21-2008, 02:10 PM	#4
rstlne Senior Member Join Date: Jan 2008 Location: New Jersey Posts: 361 Reputation: (115)	Everything that I was supposed to do in this market downturn, I actually started doing in the year 2004. That's when I caught the first whiff of the housing and mortgage crisis. That was the year when I started selling my investments in the financial and real estate sectors. I began buying gold that year, starting at a price of around $400/oz. (Also silver, but not as many ounces.) I also started a short position in my portfolio, which was foolish at that time but very lucrative now. Investing is a tough game. You're either a forward-thinking contrarian or a victim.

01-22-2008, 03:58 AM	#5
stardanced Junior Member Join Date: Jan 2008 Posts: 16 Reputation: (16)	I don't have a lot of investments (just my small Roth IRA), but I am continuing to buy in small increments. I'm buying for the long term (a target retirement fund), so I'm not so worried about how it's doing this year--it's not likely to affect the price the fund will be when I retire in 40 years! In fact, I'm more encouraged to buy now that prices are a little lower. I feel like my fund is on sale.