HELP. stock market keeps going down ??????

Question

are we going to see the dow hit 8-9K again?? what do you think is going to take for the us market to go back up OR at least stop droping everyday. I think the feds need to raise interest rate 0.25% just so oil can back off a little bit. BUT this will hurt us here at home BUt maybe not as much.I DONT KNOW ANYTHING ANYMORE. I CAN NOT FIGURE OUT THIS MARKET AND HOW TO GET OUT OF THIS MESS. HELP. WHATS YOU THOUGHTS. ( PLEASE KEEP POLITICS OUT )

Answer 1

I would consider other money making ventures! To keep up an income flow and money generation. Its tough what we are going through right now as a country but we will get through, we are survivors! ;-)

Take Care & Good Luck!

Answer 2

The entire world appears to be in the throes of a global recession and being hit with high oil and high inflation.

It is very bad, that is for sure.

But things will recover eventually, though exactly when is anybody's guess.  My own opinion, FWIW, is in the second half of 2009 - starting with housing.

If you need money quickly, then cash out and put the funds in a money market fund;  or CD.  

If you can hang on, do so.  And continue to add to it via your 401K or other contribution plan.

I have been moving funds from stocks to cash for the past week or so, since I am approaching retirement.

Answer 3

The only certainty is that equity markets have declines and recoveries.  None of the "experts" can reliably predict them.

Answer 4

The maket is cyclical. It goes up, it goes down. Raising the fed really doesn't affect oil prices much. Those are based on the actions of OPEC. OPEC countries can borrow more money for less if the fed is down. Yes, even the richest countries in the world borrow against the dollar! There are some real bargains out there and many experts are buying. A bit of inflation probably won't hurt us in the long run either. We need to get away from living paycheck to paycheck and start investing in retirement. That will help the equities market as well!

Answer 5

The stock market is a roller coaster ride. The stock market is very liquid, which means that anyone can get in and out of the market at will. In the long term, assuming you have a well selected portfolio, you will make money.

Personally I have a hard time with that. I also have a hard time with the model being used is that the same piece of paper is increasing in price when the value of the piece of paper may not necessarily have changed.

My suggestion would be to look at options outside of what banks and financial planners are selling. Look for investments that change the value of the underlying asset before you exit. Because of the value change there is already a lift in the value, thus the risk is significantly reduced. The best model to follow is "you make you money when you buy the asset, not when you sell it". For example: You are investor and you know you can change the use of a piece of raw land by rezoning it. The higher the zoning density the high the value. If you are part of the process that rezones the land, there is an immediate lift with very little additional cost. Now instead of buying the raw land, you purchase the option to buy the land for set period of time. The cost can be as low as $1 dollar to do so. The only risk you have is the cost of the option.

There are lots and lots of opportunities to earn money with little or no risk. Learn about your options. You can easily make between 12% and 20 % practically risk free.

You really have 2 options:

1. Invest in traditional investments offered throughy banks and financial planners. You abdicate responsibility, and you will have a roller coaster ride. Ask those who retired in 2000 and took a 40% hit on their portfolio. Those who stuck to their portfolios are back to square one. Most did not and exitied the market they in essence bought high and sold low.

2. Invest in investments offered outside of the bank, you will enjoy higher returns with very low risk and no volatility. You will need to do your own homework. There are lots of sharks out there and there are lots of people who claim they know what they are doing. Once you get on to the programme there is no turning back. Commit to spending 30 minutes a day with your finances and investments. WIthin 1 or 2 years you will be well on to the path of a solid financial future. Take responsibilty for your financial future.

Good luck.