I wouldn't buy in just now as I don't think we're at the bottom yet. I do think we will reach a plateau though before long. Either way, I can't touch my 401 for several more years so I'm not worried about this roller coaster ride. I do hope there's still some value left when I'm able to access it though! All these years my wife has collected jewelry. Nothing extravagant, but lots of rings and necklaces and such. I always thought her 'hobby' was a waste, but who knows, Her investments may turn out better than mine!
Yeah, gold going up is the scary sign, every one was predicting down below $1,000 some down to $350.. Rater of Dow drop is very telling. Shanghai, despite hundreds of billions pumped into banks and markets, and trading restrictions on anyone owning more than 5% shares etc.. (you go to jail if you sell your shares if you are a major share holder in China) is falling like a stone and taking the world with it... Oil below <$40 a barrel is a surefire indication of broken beyond repair.
It's a retirement plan. Your company matches how much you save, and it goes into stock market mutual funds. You buy stocks with pre tax dollars, and the growth (hopefully it goes up) dosent get taxed until you start to take it out. The rub is, for the tax benefits, if you take it out before retirement age, they penalize you pretty harshly. I think the earliest you can withdraw it is 59 1/2 yrs old. The theory is when you retire you will be in a low tax bracket and will be taxed at a lower rate when withdrawing enough to live on each year. Either way, with your employer matching your amount you save, it's a pretty good deal. I just hope there is still value in the stock market when I can retire. I look at it this way; prepping is about covering as many bases as you can to ensure your ability to live comfortably down the road. This is just one of those preps.
They are all in denial at this point. People are holding their breath for a bounce this week. There very well might be a bounce, but I don't see ANY good economic news anywhere on the horizon that would shore up confidence.
But you NEVER KNOW what tomorrow might bring...
I told my sister last Wednesday that it was time to cash out any stocks immediately, so that tells you what I think about the matter.
I agree, there will be a bottom before long. I must admit though, the first hour this morning, seeing a 1000 point drop was a little apocoliptic! I'm really not worried though. As a matter of fact, once it bottoms out I may put some funds in a little more aggressive growth fund. I was currently in the most conservative options, so didn't get hit much here. Some though.
Just think how much the China market would tank if we stopped buying their junk.
I tend to look at drops like this as a buying opportunity for good quality dividend paying stocks. I also believe the market will bounce back in the coming weeks, maybe not to the previous levels though. That being said, I do expect to see an economic collapse in the near future. I do not keep any money in the bank, other than what is needed to pay bills, its buried away in a safe location.
The old saying; "Buy low and sell high" is the best advice when it comes to investing in the stock market. In reality, many people do the opposite and buy when the market is high, because they feel like they would miss out, and then panic sell when the market drops.
