minus 3.1% ouch! Dow teeters on 10K

[floatingdoc]

oh baby, am I glad I go out on Jan 20 at the top! S&P is off 9.25% since that time. Something was a sayin to me...this market is going to unravel. I am 100% in short term bonds and that is where I am staying, no high yield, no stocks, period. Thank god I decided against the high yield portfolio or going back into the market.

 

[NW-Bound]

Thanks for rubbing salt into my wounds.

 

[ziggy29]

On October 31, 2007, something gnawed at me to get the hell out of stocks with the Dow around 14,000.

I didn't and got creamed.

Fortunately I didn't sell near the low and I did rebalance fairly close to the low, so I gained back all but about 15% of my high watermark in October '07.

It's gnawing at me again. And this time, I at least partially heeded the call. I got most of what I lost back in the recent rally, and for now that's good enough for me given the headwinds I see. I could be wrong, but I'd rather be wrong this way than wrong in the way I was for not taking action in '07.

 

[audreyh1]

Hey, after such a tremendous rally we need a healthy 10% correction so that we can "move on".

A lot of hot money has chased commodities, and with the US$ rising in value a bunch of the carry trades (where people borrow in a low interest, declining currency and chase hot investments) are being unwound. This causes the better performing assets to decline.

Just let these sellers get out of here, and then maybe things will settle down (for a while, anyway).

For folks concerned about imminent inflation - well, if you see the huge commodity price drops you probably realize it's not likely to happen this year.

Audrey

 

[Bikerdude]

oh baby, am I glad I go out on Jan 20 at the top! S&P is off 11% since that time. Something was a sayin to me...this market is going to unravel. I am 100% in short term bonds and that is where I am staying, no high yield, no stocks, period. Thank god I decided against the high yield portfolio or going back into the market.

I see the S&P down around 7.5% from the 1/19 close of 1150. Not good, but not as bad as your number. 10% corrections are common.

 

[ziggy29]

I see the S&P down around 7.5% from the 1/19 close of 1150. Not good, but not as bad as your number. 10% corrections are common.

I think this could be a garden variety healthy correction off of a rally IF the jobs picture starts improving. If the "jobless recovery" continues I don't think it will be a recovery for too many months longer.

 

[Brat]

Not yet, but 'tis time to eye equities that you are kicking yourself for passing up when they were cheap. I have always liked GE, MMM, JNJ, and Pepsi but haven't researched them for about a year.

Anyone want to toss out their own 'should-a bought' list?

 

[calmloki]

Oh goody - looks like time to think about investing the pocket change we have left after loss harvesting our GM stock!

 

[ziggy29]

Not yet, but 'tis time to eye equities that you are kicking yourself for passing up when they were cheap. I have always liked GE, MMM, JNJ, and Pepsi but haven't researched them for about a year.

If I were still an investor in individual stocks, I would generally be leaning toward the dividend stocks with a strong history of steady earnings and dividend growth. To the extent one can wring some of the risk out of stocks, I think that could do it.

 

[W2R]

After 2008-2009, I feel like a seasoned veteran when it comes to stock market crashes.

So, I am ready to hang on and ride the roller coaster once again, should it be starting up.
Guess this is part of what it takes to be an investor these days.

I bought low in Oct-Nov 2008, but I won't need to rebalance for a while unless the market keeps dropping .

 

[Brat]

If I were still an investor in individual stocks, I would generally be leaning toward the dividend stocks with a strong history of steady earnings and dividend growth. To the extent one can wring some of the risk out of stocks, I think that could do it.

Me too. Wasn't there a thread a while back about such stocks?

 

[CyclingInvestor]

Not yet, but 'tis time to eye equities that you are kicking yourself for passing up when they were cheap. I have always liked GE, MMM, JNJ, and Pepsi but haven't researched them for about a year.

Anyone want to toss out their own 'should-a bought' list?

I am still 100% individual stocks (as I have been since 1993). My current largest holdings are ADP, JNJ, KO, PG, SYY. Of the stocks I follow but do not currently own, I consider MDT, ABT, AFL to be the best values.

 

[Steve O]

Im sure we will have more "stimulus" coming soon to prop this up a little longer

Im calling for S&P 500 at 500 soon

 

[unclemick]

Pssst - Wellesley - ballpark 3.28% SEC yield. Not great but better than a kick in the butt.

Since 1966 - Zenness has eluded me. I ran high on blood pressure even when we were way ahead of Arizona - I wouldn't check it during the Viks game.

Full auto, Target Retirement 2015 plus early SS and non cola pension and 16 years of ER.

Don't know, don't care cause I've been through a few cycles? Well not exactly but it's getting better even though I still watch Mr Market and football.

Hormones - resistance is futile.

heh heh heh - Unless of course you're dead - that's no fun cause you can't take it with you. Geaux Saints.

 

[easysurfer]

Looks like it's time to strap on the seatbelts and go along for the follow the total market index ride

 

[mickeyd]

Buying opportunity? Why not?

 

[FUEGO]

Im calling for S&P 500 at 500 soon

You and TheSweetLife should start an investment newsletter. You'll be rich!

 

[Steve O]

Nowhere to hide here

At least Im young and healthy...

 

[easysurfer]

Well, things aren't so bad.

Just ask :

Online Crystal Ball :: Free Fortune Teller

I asked is it a good time to invest in the stock market and got a 65% yes answer

 

[audreyh1]

After 2008-2009, I feel like a seasoned veteran when it comes to stock market crashes.

Now remember, a crash requires something like >30% drop within a certain amount of time (don't remember exactly). We definitely saw one of those in 2008. They are not very common.

A 20% drop or more is considered the start of a "bear market" unless you are already in one, I guess.

Anything less - 10% or so - is simply considered a "correction" and they occur relatively frequently in all markets.

Audrey

 

[FIREd]

Just another buying opportunity for us young dreamers...

 

[haha]

Just another buying opportunity for us young dreamers...

I think I heard that somewhere before...

Ha

 

[Lusitan]

I think I heard that somewhere before...

Ha

Yeah, I said that 10 years ago -- look how well it turned out for me.

Anyone seen my decade around somewhere ... ?

 

[freebird5825]

It's times like this that I'm really glad I've kept my chicken feather dress on.

I fear nothing in life and can rely on my natural ability to think logically for a lot of decisions. But I recognize that the market is such a variable mess, I like the safer bet (40/60 target AA) for myself.

I'm no expert, more of a little leaguer here, but I do know how to follow my gut instincts so I can sleep at night.

 

[FIREd]

I think I heard that somewhere before...

Ha

Worked pretty well for me last time and the time before that...