Stock Market Woes

[laurence]

Well, my goodness!

http://www.msnbc.msn.com/id/3683270/

I know, we aren't day traders, we are in it for the long haul, but we've had a couple triple digit losses in the past week, and this is the biggest single day drop in 3 years! So now the market is a born-again believer in inflation, welcome to the party, there are still a few drinks in the fridge!

The thing is, companies are reporting good earnings, how long and far does the market have to drop before valuations get reasonable again? Anybody getting dragged down unfairly that those of us with a little testosterone money should look into buying? Wow, look at all that blood!

 

[Cool Dood]

Yeah, seriously... the last few days have been the worst drop I've ever seen in my (very short) investing career. It's interesting to watch, and although I can't quite say it's fun, it's nice to know that even if this continued for a while it wouldn't have much impact on my life, and if anything would just present a better buying opportunity for more future investments than the sum of my past investments.

Also, I'll echo Laurence and ask if anyone has some good companies that were beat down over this time period?

 

[brewer12345]

BPOP, PPD, STON and SUP all look very cheap to me at today's prices. That's why I own them. But each one has a little hair on it, possibly excepting BPOP.

 

[frayne]

Reversion to the mean my friends, nothing more and nothing less. Markets are driven by fear and greed, not rationale thinking or actions. IMHO anyways.

 

[d]

Wow, look at all that blood!

get a grip ... the S&P is down by about 4% from recent highs, and still positive YTD.  Hardly a blood bath

 

[al_bundy]

check out the 10 and 30 year bonds for the last 15 years or so. Everytime the yields go up the market tanks big. I remember back in the summer of 2000 a lot of companies had stellar earnings and nice growth and their stock prices sank. a year later things were grimmer. market is always ahead of the game.

 

[Nords]

The thing is, companies are reporting good earnings, how long and far does the market have to drop before valuations get reasonable again?  Anybody getting dragged down unfairly that those of us with a little testosterone money should look into buying?  Wow, look at all that blood! 

Gosh, Laurence, are you sure you have that right?  It's a fire sale-- run away fast!  Buy gold, shotgun shells, and MREs today!!

But, seriously, we sold Tweedy, Browne at $29 last month and we've been buying PID.  The price keeps getting better every day.

Berkshire Hathaway (BRK.B).  Oops, sorry, never mind, that one's up 4% this month.  Better not buy since it couldn't possibly go any higher.

Costco (COST).  Oh, wait, not this one either, it's up 9% this year (plus dividends) and it can't go any higher either if runaway consumer inflation makes people desperate for cheap gas & consumables.

Intel.
Nortel.
Stonmor (STON).
Eagle Bulk Shipping (EGLE).
Pre-Paid Legal (PPD).
PLMD, CGI, SUP, or the solar trio of STP/SPWR/ESLR?
I'm sure you can find a defense contractor or two on sale, although that might mess up your portfolio/job diversification.  What about United Technologies?

The biggest problem is that I can only raise so much cash.

Go ahead, guys-- but before you pick on these suggestions, lay out your own tickers for my due diligence.

 

[justin]

International index funds look to have dropped 6-10% from their highs 1-2 weeks ago. Could be good to get in now if you missed the recent run-up. Or it could correct downwards another 10+%. No crystal ball here.

Me? I'll keep my auto-investing plan in place.

 

[maddythebeagle]

BPOP, PPD, STON and SUP all look very cheap to me at today's prices.  That's why I own them.  But each one has a little hair on it, possibly excepting BPOP.

Glad you mentioned BPOP, I have been adding to that one over the last 6 months and looks better now.

 

[laurence]

get a grip ... the S&P is down by about 4% from recent highs, and still positive YTD.  Hardly a blood bath

If I'm asking for tips on what to buy, I'm obviously not running to the hills!

 

[Papi]

I believe Intel looks like a good buy now. I added to my position today. The problem is you may have to hold it for quite a bit to see a nice return.

 

[cute fuzzy bunny]

Gosh, Laurence, are you sure you have that right? It's a fire sale-- run away fast! Buy gold, shotgun shells, and MREs today!!

I'm hoping the sale gets deeper! I've got about a hundred thousand in cash I wanna do something with, and my wifes still putting money into her 403b every two weeks.

 

[Nords]

I'm hoping the sale gets deeper!  I've got about a hundred thousand in cash I wanna do something with

Hey, TH, the Lexus dealer called to let you know they're sending their limo over for your next shopping spree...

 

[laurence]

I'm hoping the sale gets deeper!  I've got about a hundred thousand in cash I wanna do something with, and my wifes still putting money into her 403b every two weeks.

Show off! My entire portfolio is your petty cash box!

BTW, thanks for the tip on VTV last year, made 13.5% over an 11 month period!

 

[haha]

I'm hoping the sale gets deeper!  I've got about a hundred thousand in cash I wanna do something with,

Hmm, that must mean you have at least $2 million already invested- you sure you are evaluating this correctly?

Ha

 

[Danny]

I'm hoping the sale gets deeper! I've got about a hundred thousand in cash I wanna do something with, and my wifes still putting money into her 403b every two weeks.

How much deeper until you thinks it ok....

 

[wabmester]

How much deeper until you thinks it ok....

Hehe. That's the $60K question. It'll be interesting to see the sentiment change once we're all out of cash. Will we be grieving over bargains we can no longer afford, or will we be saying "somebody make the pain stop!"

 

[youbet]

Somebody make the pain stop!

 

[Andre1969]

I'm actually proud of myself for not getting panicky with this recent drop. I don't know what today's little fiasco has cost me, but as of yesterday I figure I was down about $10,000 from my peak, which I hit last week.

But, it's also that time of the month, when the automatic monthly investment on my mutual funds goes in, so it's not a total loss. And even with this drop, my portfolio has still made more money this year than my job has!

 

[REWahoo]

Somebody make the pain stop!

Patience, youbet. It'll stop in a few days weeks months years

 

[cute fuzzy bunny]

Show off! My entire portfolio is your petty cash box!

BTW, thanks for the tip on VTV last year, made 13.5% over an 11 month period!

Still got it?

 

[Danny]

Hey wab - remember when I told you to buy 5,000 shares of Target at 54.50?
You ignored me of course.....didn't you....?

I think now is definitely a good time!

 

[cute fuzzy bunny]

How much deeper until you thinks it ok....

Deeper than this.

Ha - Dont understand your question.

 

[justin]

Just added up the damage - down 1.6% for the day. Not too bad for a ~100% equities portfolio on a really bad day.

Surprisingly, the emerging markets fund and the small cap value fund both helped limit losses today. Diversification was good to me today.

 

[laurence]

Still got it?

Yeah, I got it right -YEAAAAKKK!!!- Make that 9% (GULP!)  

Yes, I'm still holding it....