Washington Mutual Collapses

[homer]

Yeah but there are still people saying it will go much lower. Based on Cramer's 20% comment he expects the market to get into the low 8,000s. If that is the case their probably is still atleast 2-3 more rough months ahead. Most prognosticators are saying don't expect a ton of improvement until 2010.

 

And after today it's almost there....

[pitchleague]

yeah, Al, I know exactly what you're saying. Personally, I am not worried one iota quite yet. Sure, it's depressing that I'm losing money but I'm young enough to get it all back and then some.

 

Although, one of my accounts is just a liquid cash builder fund (we've been putting money into it for a rainy day event) and it kind of hurts that it's losing money, too, especially if something happens tomorrow that we need that money.

[dadofandrew]

A cash fund should not be losing. CD's or money markets may not grow much, but they should not lose a penny.

[fondybrewfan]

Well we should get under 8,000 today, It looks like it will be a rough one

[homer]

My guess is that it's going to his some kind of floor and then shoot up dramatically - like 1000 points in a week. The thing is, no one know where that floor is. It dropped 600 right away today and now it's down like 140.

[fondybrewfan]

You would think at some point the traders would realize that they are selling on good companies at reasonable prices. I agree with you Homer sooner or later their will be a week where the traders realize how cheap some of these stocks really are. If I had cash laying around I might even consider getting in on the action.

[Chio151]

I think you'll see the market really rebound once the new administration steps in and we have some confidence that everything will be alright. Right now, it's just echo chamber panic.

[homer]

I mean look at GE - solid company trading at 11 year lows. Someone's going to make a killing buying nothing but blue chips.

[whizkid]

A cash fund should not be losing. CD's or money markets may not grow much, but they should not lose a penny.

 

The money market Reserve Primary Fund broke a buck, fell from the $1 target of money market funds to $.97. There's talk others could drop too due to the credit market constipation.

[PeaveyFury]

The money market Reserve Primary Fund broke a buck, fell from the $1 target of money market funds to $.97.

 

I think that was the first MM fund to do so since the mid-1990's, if I heard correctly.

[fondybrewfan]

Well today perhaps eased a little fear, even if it is only temporary. It doesn't quite make up for last week but I will take 900+ points and 10% plus.

[dadofandrew]

We might look back at the Dow at 8500 in a few months and giggle "if only I had bought in then".

 

I did not see what it did today, but Integrys was at 42 after Friday, and it used to bounce between 50 and 55...since there profits are all but guaranteed due to their rates beiong approved by the state...that seemed ridiculously low.

 

Others did too, obviously.

[chuckiehacks]

Warren Buffet feels the same way.

 

Link

[bork]

Warren Buffet feels the same way.

 

Link

He knows what he's talking about. I saw that he made something like $8 billion this year, while others were losing their shirts. He passed Bill Gates as the wealthiest man in the country.

[FVBrewerFan]

I mean look at GE - solid company trading at 11 year lows. Someone's going to make a killing buying nothing but blue chips.

Good luck with GE. They have a huge finance comapny that's a mess, along with numerous other problems. I've started buying again, but staying far away from GE.

[craigharmann]

I think you'll see the market really rebound once the new administration steps in and we have some confidence that everything will be alright. Right now, it's just echo chamber panic.

To some extent I agree, but I don't know if either candidate will make anyone more confident. A big part of it, to me, is people living within their means, not buying the 3000 inch Plasma TV with their credit card, when they're going to only afford to pay the minimum payment for the next 30 years. Save your money until you can pay for it. Plain and simple. Live within your means.

[rluzinski]

Trying to time the market is somewhat analogous to trying to try to gauge the "hottness" of a batter when filling out your lineup card. Their might be some things to consider but a significant portion of he equation is unpredictable over the short term.

[dadofandrew]

On the stock shows this AM, they were split on where the market would be on 12-31-08, but all were in agreement where it would be in 5 years...well up.

 

I would not try to time it anyway, if I had $10K to invest, I'd just do it $1-2K at a time for every other week for a while. Many folks think they can time the market, so I'm pretty sure it's hopeless.