Market hits home: Down $280 before bed, woke up $296 more gone

[linazelle]

I've lost nearly $600 from the market craziness overnight. I don't know whether to withdraw altogether, move to bonds...I'm at a loss. One thing's for sure, all of my stock investments--foreign, small cap and regular stock--are all taking a dive.

What do you do?

[swag]

1. Stick with my strategic allocation strategy,

contribute regularly, rebalance among asset classes annually.

[linazelle]

5. Contribute regularly is easy--but reallocate annually....

You're suggesting ignoring the drops and not reallocating now?

[swag]

10. By my lights, stocks haven't dropped all that much.

In fact the S&P 500 is still positive for the year.

A weaker dollar will ultimately be good for US companies, making US exports more attractive to foreign buyers (increasing exports contributed to the decline in the trade deficit for April).

When stocks drop, I tend to buy more of them.

But I think you and I are different kinds of investors.

Best wishes.

[KoKo]

11. You shouldn't do anything when the Market experiences a two day drop.

Wait until the markets stabilize. Why sell when everyone else is selling? Bad move to panic.

[DS1]

2. If losing 600 is this dramatic, I would recommend a less volatile

stock, or just withdraw altogether and put it in a bank, as you probably have to see a significant rise in stock value to even cover your trader's commissions and fees.

[rodeodance]

4. pray? sorry, I realize this is a real problem.

[Karenca]

3. well, i keep it all in fixed

because i'm petrified of risk.

All my friends lost alot of money last time the stocks dropped.

I didn' lose...I didn't make alot either, but I'm a coward.

[Karenca]

6. even bonds fluctuate. ...nt

[rodeodance]

7. have you seen this in LBN? global stocks tumble

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x2281481

[rodeodance]

8. on Fox now. Warren Buffen not betting on American stock market

[Karenca]

9. we're so fucked ...nt

[swag]

15. The Nikkei is still up year-to-date and way up year-over-year.

In US dollars it and other foreign indices are up even more due to currency effects.

Same with the EAFE, the broad index of international stocks.

US and International stocks may slide further next week: who knows?

But to call this an all-out crash in global stocks seems misguided.

[CAcyclist]

12. Leave it alone.

My stocks (not very much, I admit) have been on a wild rollercoaster but I never pulled the money out after the 2001 crash and it eventually rebounded. A blip now is nothing.

[MazeRat7]

13. Well if it makes you feel any better, I am down just over 10x of that....

So I bought more of the companies I knew were solid while they are at record lows to get a wider spread.

Just my strategy for making money after a down cycle.... oh yeah and I try not to focus of the fact that in 2 days my investments moved from a 30% gain to a 22% loss... that is just a formula for stress.

MZr7

[Systematic Chaos]

14. Well, if you want to believe Stanford Wong...

...card counting at blackjack is only 1/5 as risky as investing in the stock market. And he crunched the numbers for that game every which way but loose. What does THAT tell you?

I wouldn't put a penny into the stock market if you put a gun to my head, and I was saying that even during the "irrational exuberance" leading up to the 2000 bear market. I've always been a fan of commodities and metals, myself. No amount of market manipulation can stop what's coming, and 50 million million million worthless dollars won't hold a candle to a couple ounces of pure gold. Not a matter of if, but when.

[supernova]

16. Well, $600 isn't that much

sorry but it isn't enough of a drop to worry about.

If you are that worried about market volatility, maybe stock investing isn't the way to go for you.

I live by these simple precepts:

1) A better way to approach it is to look at how the markets perform over time and not what they do day to day. You can make yourself crazy with dips and plunges of D2D monitoring. Look at it over from year to year. Stock investing is about long-term goals, expressed here in decades.

2) Never invest more at a time than you are prepared to lose. Stock investing IS a form of gambling. That sounds crazy, but if you can't spare it the way you would spend it on say an elaborate meal, then put it in other safer types of investments, maybe CDs.

3) Get a competent account manager. Yes you pay for them, but they spend their lives studying this stuff, use their expertise.

[Oversea Visitor]

17. GET OUT OF STOCK MARKET

Local or oversea.
If you got time on Monday you better be ready to run.

[donsu]

18. agree - get out of the stock market and

don't get pregnant

life is going to get worse

[Oversea Visitor]

19. Haha

Me big cowards. 97 was bad :rofl: caught with pants down. Note where I am from.

Clear out of market one month ago same with all my friends.
We see BIG KABOOM coming.

Chimp lying on the US economy
Cooking lots of figures
Only so much dirts can go under the carpet

x( dumb chimp keep making it worse
Now all panic mode.
Maybe Monday see route begins who know
But yes it will blow matter of time
US borrowing out of control

[enid602]

20. international bond funds

My favorites are BGBEX (American Century International Bond Fund) and RPIBX (T.Rowe Price International Bond Fund). The problem with international stock mutual funds is that stock markets around the world tend to go up and down in sync 99% of the time. The bond market is much more even. If foreign exchange rates remain stable, these bond funds will just give a so-so return. If the dollar takes a plunge, they skyrocket.

PS: the abovementioned bond funds are no-load, meaning you don't have to pay up-front fees. Both invest in sovereign and AAA-rated corporate bonds of developed countries.

[Jeffersons Ghost]

21. it's a shame regular investors can't own pure gold in quantity

as the US dollar losses value at a rapid rate, buying gold or land appear to be the only safe investments.

[OrangeCountyDemocrat]

24. Who Says You Can't Buy Gold? nt

[newblewtoo]

22. What do you do?

Never invest in any thing you do not fully understand. Never invest money you cannot lose. Never rely on information from the 'net.

[OrangeCountyDemocrat]

23. GOLD.....SILVER....METALS!!!!

Pick yourself some metals stocks and some ETF's. Someday soon, you'll look back at the Gold price now of approx. $700, and realize what a STEAL it was. Same with Silver at $14.

This economy is going to get worse Long before it gets better. There's a cold wind a commin'. This govt. did nothing to help out the people of New Orleans, don't think they'll be there when the bottom drops out, and the stock market really collapses.

You should be very diversified, and heavier on Metals and Cash or Liquid Securities like short-term CD's. If you are able to get your hands on some foreign currency, that's also a good idea. The $ is going to take a hit, and it is already beginning.

[alfredo]

25. Investing is not for the faint of heart. I got out when bush was

appointed. Only one stock in my portfolio survived, AAPL.