Only real estate, precious metals, cars, motorcycles (tangible assets)
How low would the DOW have to drop for you to sell your mutual funds/stocks and get out before it is "too late?
Only real estate, precious metals, cars, motorcycles (tangible assets)
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Paul in San Diego
Last March or so, the Dow was at about 13,000 and it tumbled 350 points in one day. I had my 401k in high-risk/high-yield stock funds and, fearing what happened to the market after 9/11, I transferred all my funds into a money market account.
I just looked up my account today and I have been getting a yield of about 4% over the last year and a half in that money market fund. But, the high-risk stock fund I had gotten out of lost nearly 30% over the last 3 quarters.
So, I would say that, if you didn’t get your money out of those stock funds about a year ago, it’s already too late. I still recommend, however, that you go ahead and get into some kind of money market fund (or even precious metals) right now. Sure, you’ve already taken quite a hit in the stock market. But, who knows how low it will go. And, it certainly be very volatile for awhile. So, cut your losses and get out while you can, especially if you’re just a casual investor with a 401k account.
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Net Advisor
I have not owned a mutual fund in 4+ years. Trade stocks, and options primarily. Mostly short for the last 2 years.
The rule of thumb – a 10% drop is an exit.
You can dollar cost average is another strategy.
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WallStreetTrader
im not really selling all my stocks im just buying more and more because the market has to eventually turn around you just have to wait. patient investors/traders are the ones who make the big $$$/
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Janet
You are really beginning to scare me now. I was just discussing this matter last night with hubby, and he said that a big reason the stock market crashed in 1929 was because of mass hysteria caused by fear. No, leave the money alone; the market will rebound, and we have a duty to not contribute to making matters worse was the answer he gave me.
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itsjunglepat
I was mostly out about 2 and a half years ago. A veteran of the financial industry told me how he sold his house in Fort Lauderdale and put his money in a Swiss bank account. He gave very ominous lectures at the apartment complex gym. I listened w/amusement, skepticism, and respect. Getting most of my money out helped put my mind at ease while working.
Paul in San Diego 10:25 am on August 28, 2010
Last March or so, the Dow was at about 13,000 and it tumbled 350 points in one day. I had my 401k in high-risk/high-yield stock funds and, fearing what happened to the market after 9/11, I transferred all my funds into a money market account.
I just looked up my account today and I have been getting a yield of about 4% over the last year and a half in that money market fund. But, the high-risk stock fund I had gotten out of lost nearly 30% over the last 3 quarters.
So, I would say that, if you didn’t get your money out of those stock funds about a year ago, it’s already too late. I still recommend, however, that you go ahead and get into some kind of money market fund (or even precious metals) right now. Sure, you’ve already taken quite a hit in the stock market. But, who knows how low it will go. And, it certainly be very volatile for awhile. So, cut your losses and get out while you can, especially if you’re just a casual investor with a 401k account.
Net Advisor 10:25 am on August 28, 2010
I have not owned a mutual fund in 4+ years. Trade stocks, and options primarily. Mostly short for the last 2 years.
The rule of thumb – a 10% drop is an exit.
You can dollar cost average is another strategy.
WallStreetTrader 10:25 am on August 28, 2010
im not really selling all my stocks im just buying more and more because the market has to eventually turn around you just have to wait. patient investors/traders are the ones who make the big $$$/
Janet 10:25 am on August 28, 2010
You are really beginning to scare me now. I was just discussing this matter last night with hubby, and he said that a big reason the stock market crashed in 1929 was because of mass hysteria caused by fear. No, leave the money alone; the market will rebound, and we have a duty to not contribute to making matters worse was the answer he gave me.
itsjunglepat 10:25 am on August 28, 2010
I was mostly out about 2 and a half years ago. A veteran of the financial industry told me how he sold his house in Fort Lauderdale and put his money in a Swiss bank account. He gave very ominous lectures at the apartment complex gym. I listened w/amusement, skepticism, and respect. Getting most of my money out helped put my mind at ease while working.
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